Which credit cards allow you to set spending limits for authorized users?
Key takeaways
- There are many good reasons to add an authorized user to a credit card, whether you’re a parent hoping to help a teen build credit or an employer hoping to delegate business spending to a trusted employee.
- Many business card issuers allow you to set spending limits for authorized users, while fewer consumer cards allow you to limit the amount of money your user can charge to your line of credit.
- It’s a good idea to discuss expectations and responsibilities in advance with your authorized user. That way, you both can share goals and get the most out of your experience.
There are a lot of good reasons to add a trusted family member or employee as an authorized user on your credit card account. Authorized users are people you authorize to make purchases on your line of credit. They receive their own credit card, and you remain liable for all charges and on-time payments, even for purchases made by your authorized user.
Many parents choose to add their children as authorized users, first to teach them how to use credit and second because being an authorized user can help build your credit score. Small-business owners may choose to add their employees as authorized users, especially if they want to delegate purchasing responsibilities.
That said, granting someone the authority to make purchases on your line of credit can have negative consequences — especially if your authorized user spends more money than you’re expecting. This is why some credit issuers give you the ability to set limits on the amount of money their authorized user can spend. Not all credit cards offer this benefit, so choose your card carefully before adding an authorized user to your account.
If you’re considering adding an authorized user to your credit card, here’s an overview of which credit cards let you set a spending limit for authorized users, as well as what you can do to help your authorized user relationship run as smoothly as possible.
Business credit cards that allow you to set spending limits
Issuing credit cards to employees is a lesser-known business credit card perks, and it can be a good way to save time and share some of the work involved in managing day-to-day business tasks.
Credit card issuers understand that small-business owners want to limit the amount of money that employees can spend, and many of today’s best business credit cards allow you to set spending limits for authorized users.
| Card issuer | Best business credit cards |
|---|---|
| American Express | |
| Bank of America | |
| Capital One | |
| Chase | |
| U.S. Bank |
Consumer credit cards that allow you to set spending limits
While many consumer credit cards allow you to add authorized users, only American Express credit cards allow you to set limits on authorized user spending. Amex allows you to set an authorized limit as low as $200.
If you’re thinking about adding a family member as an authorized user on your credit card, you may want to look for a card that lets you limit the amount of money your authorized user can spend — especially if you’re handing your credit card over to a teenager who may be new to using credit and not familiar with the risks of running up credit card debt.
Consider one of these four consumer Amex cards for flexibility in limiting authorized user spending.
| Card issuer | Best Consumer Credit Cards |
|---|---|
| American Express |
How to manage spending for your authorized user
If you are concerned that your authorized user might overspend your credit card account, here are ways you can work together to avoid the problem.
- Discuss expectations in advance. Agree on what the card can be used for and the types of purchases your authorized user can make.
- Agree on a spending limit. Even if your credit issuer doesn’t allow you to set a spending limit for your authorized user, you can agree on a spending limit together.
- Monitor balances. If you’re teaching a child how to use credit, the two of you should check your balances regularly. Small-business owners can monitor balances with employees present or on their own.
- Set up mobile alerts. Most credit card issuers allow you to receive mobile alerts every time a purchase is made to your card. Some cards allow you to set notifications by amount, so that you receive notifications on large purchases, as well as notifications when your balance hits a specific amount.
- Check in regularly. Whether you’re a parent working with a teen or an employer working with an employee, it’s important to check in regularly about credit card use. That way, you can praise what’s going well — and keep any minor issues from turning into major ones.
How to identify authorized user purchases
Some credit cards allow you to identify authorized user purchases as they appear in your online account or mobile app, as well as on your monthly credit card statement. Other credit card issuers don’t distinguish between authorized user purchases and account holder purchases. It often depends on whether the authorized user receives a different credit card number than the account holder, or whether they share a credit card number.
If you have questions about whether you’ll be able to identify authorized user purchases, talk to your credit issuer — and if you want to ensure that you can identify authorized user purchases before you add an authorized user to your account, ask your credit issuer whether they separate authorized user purchases from account holder purchases before you add an authorized user to your credit card.
Is there a way to set a spending limit on a debit card?
While many of the best debit cards for kids offer spending limits, you can also put a spending limit on any debit card simply by contacting your bank or debit card issuer. This is particularly important if you’re a parent who is helping your child use a card to learn about credit.
Many banks set their own debit card spending limits, including the amount of money you can spend on debit per day. With this in mind, you may need to contact your bank in advance if you plan to use your debit card to make a large purchase. That way, your bank can increase your limit temporarily. You could also ask your bank to lower your debit card limit, either temporarily or permanently. This could be helpful if you wanted to stick to a budget or achieve a short-term savings goal.
The bottom line
There are many good reasons to add an authorized user to your credit card — and even better reasons to limit the amount of money your authorized user can spend. While this feature is more common on business credit cards, American Express is an issuer that allows you to set spending limits on authorized users.
If you’re still shopping for a new credit card, look into Bankrate’s free CardMatch tool to prequalify for a top credit card that might be right for you.
*Issuer-required disclosure statement
Information about the Business Advantage Travel Rewards World Mastercard®, Platinum Plus® Mastercard® Business Card, Capital One Spark Classic and U.S. Bank Business Altitude™ Connect World Elite Mastercard® has been collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.
