Primary Account Holder

Primary account holder summary:

•  A primary account holder is the legal owner of an account and typically, the primary user.

• The primary account holder is financially responsible for the account.

• The primary account holder can add or remove authorized users from their account. 

Primary account holder definition and meaning

The person whose name is officially listed as the main account owner is the primary account holder. This person is responsible for controlling the account, including making decisions about how it should be used. They’re also responsible for adding or removing authorized users, and for paying debts and fees.

Bank accounts, credit cards, utility accounts, and various types of loans typically list a primary account holder.

Key concept: A primary account holder is the legal owner of an account and holds full financial responsibility for it. 

More about primary account holders

The primary account holder is usually the person who initially opened the account. While there may be authorized users, the primary account holder is considered the main user.  As the primary account holder, they are responsible for everything associated with the account. 

That means they’re responsible for ensuring payments are made on time, fees are paid, and others who’ve been added to the account are using it responsibly. Regardless of who else has access to the account, the primary account holder is ultimately responsible for its upkeep.

Primary account holders have the opportunity to build a strong credit history by making timely payments, controlling debt, and maintaining low credit utilization. Most creditors report credit accounts to the credit monitoring bureaus. 

Achieve isn't a credit repair organization and doesn't provide or offer services or advice to repair, modify, or improve your credit.

Difference between a primary account holder and authorized user

Imagine you're the primary account holder on a credit card, and your adult child has recently graduated from college. They have a job but not much in the way of credit history. To help them build a credit history, you add them as an authorized user on your credit card. Your child receives a card linked directly to your account, but with their name on it.

Each time you pay the credit card bill on time, an on-time payment is added to your credit report—and to your child’s. Even if your child never uses the card, it will show up on their credit reports. Let's say you miss a payment. That missed payment is also added to each of your credit reports. 

Primary account holder: a comprehensive breakdown

A primary account holder is considered the responsible party and has total authority over how an account is managed. No matter how many other people have access to the account, only the primary account holder can change security settings, monitor account activity, and remove an authorized user from the account.

Responsibilities of a primary account holder include:

• Maintaining the account to ensure each listed transaction is correct.

• Paying debts, overdrafts, and fees

• Interacting with the bank, credit card, or lender

• Ensuring account policies are followed

• Making on-time payments

• Managing other account users’ activities