
Primary Account Holder
With authorized users, the primary account holder is still fully liable for all charges on the account, including charges made by both the primary account holder and any additional users on the account. The primary account holder also has the authority to discuss account details with the credit card issuer, dispute transactions, request a credit limit increase, redeem cashback or reward points, and close the account. In a joint account, each account holder can be held responsible for the charges made on the account and not just for the portion they personally charged to the account with their name on it. The term primary account holder refers to the main user of an account such as a credit card, bank account, or even a debt vehicle such as a loan.

What Is a Primary Account Holder?
The term primary account holder refers to the main user of an account such as a credit card, bank account, or even a debt vehicle such as a loan. This is the person who is legally responsible for the debt and balance along with the maintenance of the account. This individual can also make changes on the account including issuing access and/or cards to other authorized users.




Understanding Primary Account Holders
The person who makes the initial application to open an account or to apply for credit is referred to as the primary account holder. The financial institution uses its financial profile in order to approve the account.
With most financial accounts, the primary account holder has the option to allow authorized users to have access to the account. These people are known as secondary account holders and, in the case of credit cards, authorized users are also called additional cardholders. With authorized users, the primary account holder is still fully liable for all charges on the account, including charges made by both the primary account holder and any additional users on the account.
Primary account holder procedures and liabilities can differ across various types of accounts. The two main accounts set up by an individual primary account holder include checking accounts and credit card accounts.
Types of Primary Account Holder Accounts
As noted above, primary account holders can be named in several different kinds of accounts. Here are two of the most popular accounts where primary account holders may be listed.
Checking Accounts
Checking accounts typically require less of a detailed background check for approval than a credit card account. These accounts, however, will request a variety of personal information from the primary account holder for approval including their full name, address, and Social Security number (SSN).
A primary account holder approved for a checking account receives a debit card and checks. A debit card is typically the primary way account holders make payments and access their funds. Primary account holders have the option to add an authorized user which provides an additional card for each user.
Credit Cards
The primary account holder is the person who applies for the credit card. As such, the issuer considers the primary account holder's credit score when deciding whether to extend credit. The primary account holder may request that the credit card company issue additional cards to authorized users.
In some cases, the issuer may not pursue authorized users for any unpaid balances. The primary account holder also has the authority to discuss account details with the credit card issuer, dispute transactions, request a credit limit increase, redeem cashback or reward points, and close the account.
Primary Account Holder vs. Secondary Account Holder
Authorized users are called secondary account holders. These people may have access to certain parts or all of an account as outlined by the primary account holder such as signing authority. This is especially true for business accounts where a secondary holder may be able to make deposits at the bank but may not be able to withdraw money from the account.
In most cases, the secondary account holder has no legal responsibility for the account. This means the institution cannot go after this person in the event of any fraud or problems. This means the primary must assume the liability over everything the authorized user does including the balance. So the account owner must assume responsibility for any withdrawals a secondary makes if they are authorized to do so.
A primary account holder assumes responsibility for anything an authorized user does on an account.
Primary Account Holders vs. Joint Account Holders
Some financial institutions offer joint accounts to their consumers. These accounts allow two individuals to be considered primary account holders. Joint accounts are often common for married couples or family members such as a parent and a child. In a joint account, each account holder can be held responsible for the charges made on the account and not just for the portion they personally charged to the account with their name on it.
Either individual can also add authorized users to the account. Both joint account holders share the responsibility for all charges made by each other and any authorized users.
Related terms:
Account
An account is an arrangement by which an organization accepts a customer's financial assets and holds them on behalf of the customer. read more
Additional Cardholder
An additional cardholder is an authorized secondary user added to an account by the primary cardholder. There are benefits to an additional cardholder, but also risks to the primary account holder. read more
Bad Credit
Bad credit refers to a person's history of failing to pay bills on time, and the likelihood that they will fail to make timely payments in the future. read more
Cash Back
Cash back refers to a credit card that refunds a small percentage of money spent on purchases. You can also sign up through cash-back sites and apps. read more
Check
A check is a written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee. read more
Checking Account
A checking account is a deposit account held at a financial institution that allows deposits and withdrawals. Checking accounts are very liquid and can be accessed using checks, automated teller machines, and electronic debits, among other methods. read more
Commercial Account
A commercial account is any type of financial account, which a business or corporation uses. read more
Consumer Credit
Consumer credit is personal debt taken on to purchase goods and services. Credit may be extended as an installment loan or a revolving line of credit. read more
Credit Card Authorized User
A credit card authorized user is a person who has permission to use a credit card issued to another person. read more
Credit Limit
The term credit limit is the maximum amount of credit a financial institution extends to a client, for instance on a credit card or a line of credit. read more