So let’s say your credit history is a big nothing, but you’re basically a trustworthy person. If you know another trustworthy person, and they have a credit card, they might be able to help you establish credit.
All they have to do is make you an authorized user of their credit card.
That means, you’d have one of their credit cards with your name on it. You can probably see right there why everybody involved needs to be trustworthy. If one person decides to go crazy with their spending, it hurts the other. This is especially a risk for the primary account holder who’s responsible for the bill, so it’s important you don’t leave them hanging out there.
But if reliable payments are made, that credit account will show up on your credit history too, and soon you’ll be able to borrow money all by yourself.
Do us a favor please. Tell your friends about us so they can be smarter about their money too.