Primary Account Holder

Primary account holder summary:

• A primary account holder is the person who's in charge of managing a financial account.

• The primary account holder is usually the person who opens the account.

• Primary account holders can give others limited access to the account but ultimately are the ones responsible for it.

Primary Account Holder Definition and Meaning

A primary account holder is the main user of a financial account, such as a credit card or bank account. The primary account holder has full authority and responsibility over the account. 

Some types of financial accounts, such as joint bank accounts, allow two primary account holders to share equal responsibility. Each would have full authority over the account. Others, like credit cards, don’t usually allow joint accounts, and there can be only one primary account holder.

Primary account holders can sometimes add other people to the account, who have restricted privileges and responsibilities. For example, a primary account holder can add an authorized user to a credit card. This user would be able to use the card, but wouldn't be responsible for making payments. 

Types of Primary Account Holder

Bank accounts and credit cards have primary account holders. The person who applies for the credit card or bank account is the one who holds this title.

A credit card company will check the primary account holder's credit to determine whether to approve them for a card. Once approved, the primary account holder can use the card to make purchases and take advantage of card member perks. Only primary card holder can:

• Redeem credit card rewards

• Ask the card company to make someone an authorized user of the card

• Set spending limits for authorized users

• Close the account

The primary account holder is responsible for paying the account and could face damage to their credit if they don't make payments. 

The primary account holder of a bank account is also the only one with authority to manage the account. If there are multiple primary account holders in a joint account, all have equal authority. 

Other types of financial accounts may also have primary account holders. For example, if you apply for a mortgage or a car loan, you’re the primary account holder. Many lenders don't use this term, though, but refer to those who opened the account as primary borrowers instead.