“piggybacking” is a method used by consumers to help another persons “less than perfect” credit, by adding a person as an authorized used on a credit card. It works like this….A person with a great history on a credit card(both time and payment history) will add a person with “less than perfect credit” as an authorized user on the account. This would, in theory, transfer the existing credit card history over to the other persons bureau, while remaining on the original bureau as well. I say all of this in theory because not all credit cards will report an authorized users information. This method used to be used by people that were looking to spike their scores and take out loans when they wouldn’t be approved otherwise. People were doing this as a means to qualify for mortgages, car loans , bank loans . I am not saying that this method will always work and their can be great downside to doing this. If the authorized user is sharing 1 limit and decides to increase limit, go over limit, etc it will report to both bureaus the same. This is the same with a car loan cosigning . 1 late payment will affect both equally.This “piggybacking” method also sits in a grey area as I don’t believe to this date it has officially been made illegal but it is illegal to perform in bank fraud. I do believe that the scoring system formula has made allowances to recognize this. I have heard of “piggybacking” recently being effective with some clients.
so “piggybacking” ? the steps……
take your longest standing credit card(with good payment history) and add an authorized user that has less than perfect credit
check with your credit card company to make sure that the authorized users account will be reported to the bureau as well
have 1 person responsible for paying this bill every month(preferably the person who had the credit)
monitor the credit bureau to see if it works.
Please keep in mind that this may not work for people in bankruptcy , people with a massive amount of collections. This method might be better used for people with no credit or minor blemishes.
Just my 2 Cents
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