Form with which a corporation may resolve to obtain a credit card for busniess purposes for a specific officer.
Credit Card Form Statement With Authorized User In San Antonio
Category:
State:
Multi-State
City:
San Antonio
Control #:
US-0045-CR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
Cardholder's details: Name, billing address, contact information. Credit card details: Card number, expiration date, CVV code (in some cases). Amount authorized: Confirm the amount to be pre-authorized. Signature: The cardholder must sign the form to authorize the transaction.
Potential drawbacks associated with authorized users include possible fees, unequal financial responsibility, credit score impact and more.
Authorized users can make charges, but they aren't responsible for bill payments. The primary cardholder has complete liability and is responsible for making payments, redeeming rewards, requesting credit limit increases, etc.
The authorized user will likely not receive a monthly statement for the credit card. However, some credit cards can break out spending made by the authorized user within the balance statement so the cardholder can understand which charges were made by whom.
No, credit card authorized users generally do not receive a separate monthly statement; only the primary cardholder does. That's because authorized users aren't responsible for making bill payments. That obligation exclusively falls on the shoulders of primary cardholders.
If you have an authorized user on your account, you may find their transactions listed on a separate line or section on the statement. It's important to read this section over to confirm that you authorized all of these transactions.
The advantage of being an authorized user is if the person has excellent payment/ card history, it will reflect on your credit report simultaneously boosting your credit score. The disadvantage is that if that person begins to fall behind on payments, that negative information will also reflect on your credit report.
Many issuers will report the full history for the account to your credit report. Becoming an authorized user also comes with its own risks because the primary cardholder has full control and responsibility over the account. If the primary cardholder misses a payment, it will negatively impact your credit score.
If the card has a long record of on-time payments and low credit utilization, that positive history will be removed from the authorized user's credit report. And if the account has been open for a long time, it could also decrease the average length of their credit history.
Reports authorized users to the credit bureaus. But if your issuer doesn't do that or the card isn't used responsibly, being an authorized user won't help them build credit.
