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how effective is it to use a credit piggybacking company to

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firstphilosophy



Joined: 09 Aug 2007
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Subject: how effective is it to use a credit piggybacking company to
 
Posted on Thu Aug 09, 2007 3:27 am  

how effective is it to use a credit piggybacking company to boost your credit score?
Laura

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Posted on Thu Aug 09, 2007 5:44 am  

H Firstphilosophy,

Its definitely effective because once your credit gets attached to some one with a very good credit report, your report shows the same as the better one and it helps you in your purpose. Your score shoots up to any high value.

However this is a very unethical practice and Fair Isaac Corp has decided to curb this with a new FICO model. Its not implemented but may be down the line.
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GGbyte
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Posted on Thu Aug 09, 2007 5:46 am  

Hey it is very effective. My score went up by 200 points.
carol

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Posted on Thu Aug 09, 2007 5:49 am  

It helps a lot.

But I find this practice completely unethical.
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sdchargers_63

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Subject: credit
 
Posted on Fri Aug 17, 2007 11:09 am  

Can someone explain a "piggybacking company?" I've never heard of something like this. Are they effective?
Deuceklub1911



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Posted on Tue Aug 21, 2007 8:38 pm  

Does anyone know of any contact information for any of these piggybacking companies?
sdchargers_63

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Subject: piggyback companies
 
Posted on Wed Aug 22, 2007 5:33 am  

I've been reading the forum on piggyback companies. I'm finding some people are on 'opposite sides' of these companies. can someone explain thier 'service' to me? Does anyone know of names?..just want to check some out for myself.
Laura

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Posted on Wed Aug 22, 2007 8:35 am  

Clearly stating the fact...the piggybacking companies are the one who attaches your credit file to a better one.

What happens is that a borrower who is comparatively less creditworthy approaches a company that offers credit repair. These companies attach the authorized credit cards of consumers with good credit with those having bad credit. They pay these consumers to allow them to include these low credit people to be listed in their account.

Now the credit record also shows on that of the less creditworthy consumer increasing his credit score and credit taking capacity. This is however very unethical. Fair Isaac Corporation will take action against this very soon.
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sdchargers_63

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Subject: piggybacking comapny
 
Posted on Thu Aug 23, 2007 3:11 pm  

Mmm....it doesn't sound very 'legit' to me. I'm not saying they atr not legit companies. So......you're saying ( correct me if I'm wrong, please) these comapnies can find 'good' credit for you? How do they do this?Do they find people with good credit and 'attach' the good credit to the bad?...and pay these people 'on top of it'? That means, the people with good credit just lowered their credit score? ( If I have this entire 'senario' right) people actually let companies do this? Kind of 'merging' 2 CR's into one? And......the CR comapnies pay people to use use the 'good' credit, while the 'bad' credit people pay the company? Please let me know if I understand this correctly.
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Subject: Piggybacking company
 
Posted on Wed Sep 05, 2007 5:53 pm  

Piggybacking is something that is frowned upon by credit bureaus when it is not a family member and people made it into a business (offering money to get associated with X credit line). Because this tactic has been overused, I have recently heard that this will no longer be allowed. So, make sure you do research before you spend money to piggyback, as it may do nothing to your credit score. When it was allowed, it definitely helped improve your credit score, but you don't want to spend money then find out it will be ineffective in helping you meet your goal.
sdchargers_63

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Subject: credit
 
Posted on Thu Sep 06, 2007 11:59 pm  

"Overused?".I've read alot about Piggybacking. It seems like your 'stealing' someones good credit to make yours better.....ya know??
carol

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Posted on Fri Sep 07, 2007 5:28 am  

Piggybacking was usually done by a member of the family with good credit rating to give a start to a younger member of the family. This was done with good intentions by giving chance to a novice.

However things that start as amateur, land into the industry and culminate into a fraud system somehow. I am not saying it is always a fraud but there are instances.

Fair Isaac has confirmed that from September 2007 piggybacked accounts will not be considered as legitimate. So this will reduce the scores of people who are holding onto someone else's credit line.
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Laura

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Posted on Fri Sep 07, 2007 5:37 am  

Seasoned trade line or piggybacking uses a creditworthy borrowers accounts to improve the credit rating of a third party.

If within family it is done without any cost but out in the market some credit repair companies charge $500 to $2000 for this. The creditworthy borrower received a meager amount $100 to $150 (which is atrocious) and the rest goes to the brokers pocket (insanity).

FTC found out that technically this is legit but the agencies do not accept it as legal.

As mentioned in previous posts Fair Isaac has taken necessary steps. This has been stopped because of FCRA and privacy laws due to which there was no way for the lender to know the other party of the authorized account...leading to the risk of fraudulence.
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cajunbulldog

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Posted on Fri Sep 07, 2007 11:33 am  

I believe the only true valid use of this is with a family member in your household. Fico is taking steps to eliminate Au's from scoring,but will run into a major problem very soon when it finds itself in non compliance with the Equal Credit Opportunity Act. They will have to come up with a way to discount Au's but still include qualifying ones into scores. My wife is au on all my non joint accounts just as I am on her accounts. Since I live in a community property state,I think this is the only fair way to report our accounts.
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Posted on Thu Oct 25, 2007 4:45 am  

To clear up some confusion about this, it may indeed be considered unethical as it is in a way "cheating" the scoring system. It is not however stealing someone elses good credit because in order to be stealing their good credit, that would mean that you get the good credit and they do not. The loophole is this, an authorized user, (under the old fico model which on 2 of the 3 CRAs is still in effect) will have all positive (or negative) history from that card reported to their credit. It does not change the original cardholders credit, simply adds the history to the piggybackers credit. Please if you only get one piece of clarification from this, let it be that the original cardholder's credit is not at all effected by this. I would not recommend going through the agencies that offer this for a fee, but you can certainly do it through a family member. If you do so, know that within the next 12 months all of the CRAs will have gone to the new fico model which ignores authorized user accounts.

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