Setting a spending limit for authorized users
Quick insights
- An authorized user is someone you allow to make purchases using your credit card.
- In some cases, adding an authorized user to your account can help them build credit history.
- You might be able to set spending limits for authorized users to help manage your credit card account.
When a credit card is in your name, you are responsible for the bill and build credit history over time. But if you add an authorized user — like a child, spouse or employee — you might have the opportunity to help them build credit as well.
Curious how to prevent an authorized user from overspending while using your credit card? Luckily, some credit cards allow you to set spending limits for authorized users to avoid this issue. Even if this isn’t offered, it’s a good idea to set some ground rules before adding someone to your credit card account.
Below, we’ll detail how to add an authorized user to your account, how to set spending limits and which cards allow you to do so.
How to set up a spending limit for the authorized user
Many Chase credit cards allow you to add authorized users, including the Chase Freedom Rise®, Chase Freedom Unlimited® and Chase Sapphire Preferred cards.
While you can’t set up a specific spending limit for authorized users with most personal credit cards, business owners can set a spending limit on any Chase Ink® business credit card. Many business owners find this helpful for tracking spending of their authorized users (most often employees) all in one place.
You can set a spending limit for authorized users on your business credit card by logging into your Chase account online or via the Chase Mobile® app.
While you might not be able to formally set a spending limit on personal credit cards, you usually can log into your account and lock or unlock an authorized user’s card whenever you'd like.
How to manage the spending limit for your authorized user
You can manage authorized users’ spending limits for your Chase Ink business credit card by logging into your Chase account online or through the Chase Mobile app.
If you’d like to remove an authorized user, you’ll need to contact Chase by either calling the card issuer or by sending a secure message while logged into your account. After you remove a user, their card will no longer work.
How to identify the purchases of an authorized user
You generally can’t view itemized transactions for authorized users on personal cards, but you may be able to on business cards. If you have a business credit card with authorized users, you might get an itemized statement each billing cycle detailing the transactions made on employee credit cards. The collective spending can’t exceed the company’s credit limit or the limit set for an individual employee’s card.
If you have authorized users on a card that doesn’t allow spending limits, it could be a good idea to come up with a plan before adding someone to your card. Here are some tips before adding someone like a child or spouse as an authorized user:
- Come up with a spending limit together
- Review transactions regularly
- Set alerts for purchases over a certain amount
Setting up authorized users can potentially be risky because you’re allowing someone to use your credit card. This means it’s important to set ground rules and ensure your authorized users know they should avoid overspending on purchases or exceeding your credit limit. If they do, you, as the primary cardholder, will be responsible for any consequences or penalty fees.
Credit rewards for authorized users spending
If you add authorized users to your Chase credit card account, they will earn Chase Ultimate Rewards® points at the same rate as you do. You can redeem points for cash back, travel purchases, gift cards and more. Credit card rewards vary by the card, so be sure to check the terms and conditions.
In summary
Adding an authorized user to your credit card could potentially be a way to help a child or spouse build credit if the authorized user account activity is reported to the credit bureaus, or could potentially boost your business by adding employee cards.
There are potential risks to allowing someone to share your account, so be sure to come up with a plan before adding someone – especially when you can’t set spending limits for authorized users.
