Piggybacking is Great News For Consumers
Piggybacking is back and that is good news for consumers looking to boost their credit scores. Last year, the company that created the credit score Fair Isacc revised the Fico 08 scoring model to no longer allow folks to benefit from piggybacking, a process that allows consumers with weak credit to get a boost from others with higher scores.
For instance, you might want to help your teenage son start establishing credit by calling your bank and asking that he be added as an user on your account. Now your good record shows up on HIS credit file as if it were his. This was a great way to help raise or establish credit scores.
However, scam artists started abusing the system and selling their credit trade lines, leading Fair Isaac to take the piggybacking model out of their credit model. This stopped the abuse but hurt those trying to establish credit without having to wait 10 years to do it.
According to the Wall St Journal of Sept 10, 2008, Fair Isaac has decided to continue to allow the practice of piggybacking and have taken steps to prevent abuse of the system.
So, if you have a friend of or family member with great trade lines on their credit report who would be willing to add you as an authorized user, this could shave years off the time it usually takes to build or reestablish a healthy fico score.
If you have made the decision to use debt settlement to get out of debt, or have other dings on your credit score and want to rebuild your credit quickly, this method can be a great help. Of course you still need to pay your bills on time and not overextend your credit lines but you can add Piggybacking to give you a real boost.
Filed under: credit score
