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mccrae550
Joined: 02 Mar 2008
mccrae550's page
Posts: 2
145 Magic Points
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Subject: Piggybacking?
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Sun Mar 02, 2008 1:17 am
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what's the process to piggybacking? I have the person just don't know where to start??? Thaks for any advice.  |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 601
11 Magic Points
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Sun Mar 02, 2008 2:14 am
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Piggybacking used to be an authorized user, but now AUs are not counted in FICO scores.
If you share joint responsibility on a debt with another person, that account would be figured into your FICO.
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I don't dream since I quit sleeping |
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tony
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Subject: Really!
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Sun Mar 02, 2008 1:37 pm
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Thanks for your knowledge. I guess I'm out of luck. Looks like I'll have to work on my credit the long way.
thanks again.  |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1334
1 Magic Points
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Subject: piggybacking
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Sun Mar 02, 2008 4:45 pm
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| Isn't this almost like using SOMEONE else'e credit, to improve your own? I know some companies do this...but..........how can they do this LEGALLY?? Might be a crazy question, ..just curious. |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 601
11 Magic Points
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Sun Mar 02, 2008 9:21 pm
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Why would this be illegal? Consent goes a long way.
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I don't dream since I quit sleeping |
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diem
Joined: 20 Feb 2008
diem's page
Posts: 94
152 Magic Points
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Mon Mar 03, 2008 3:17 pm
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| Some people considered this CREDIT FRAUD. How ridiculous and ignorant. Even a few select lenders considered it fraud. It was a legit way to increase your score and I'm sad to see that FICO has phased it out. It was highly effective for helping your children get credit when needed, especially for school loans without having to cosign! |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1334
1 Magic Points
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Subject: CR
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Tue Mar 04, 2008 4:23 am
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| I'm just saying I've read about companies that actually PAY people to let OTHERS 'piggyback'. This 'pggyback' thing ( some of it, anyway), seems fishy to me. |
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Fasfeed
Joined: 06 Feb 2008
Fasfeed's page
Posts: 87
3244 Magic Points
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Tue Mar 04, 2008 1:36 pm
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| At one point in time you could actually inherit another persons good credit history by having them add you to their account as authorized user. This was called piggybacking. The rules to piggybacking have since been changed by FAIR ISSAC who changed their credit scoring formula which went into effect in september of 2007.Individuals who were adding to accounts as authorized users, prior to this change would also be affected and could see a dramatic drop in their credit score. It was an easy way to boost credit scores of children just starting out and going to college without you having to co-sign. |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Fri Mar 07, 2008 4:46 pm
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| I see both good and bad possibilities in piggy backing. What if it took along time to build your own credit into something to be proud about and someone knocked it down in no time flat. With the new law changes it makes it almost like co-signing right? |
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Morningstar
Joined: 17 Apr 2007
Morningstar's page
Posts: 601
11 Magic Points
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Fri Mar 07, 2008 11:07 pm
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What law changes?
You either take joint responsibility for a debt, or you don't get the FICO score boost.
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I don't dream since I quit sleeping |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Sat Mar 08, 2008 1:46 pm
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| Doesn't all this sound risky? If your the one with the good credit you are really taking a chance. About the law changes I could swear I saw a news program on this same thing and they said it was borderline illegal...Is it? |
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Ism
Joined: 13 Feb 2008
Ism's page
Posts: 44
2506 Magic Points
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Sat Mar 08, 2008 5:31 pm
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No laws were changed. There are a few ways to be on a tradeline:
Single - You are responsible and yours is the only credit report and score that it reports on.
Joint - You and someone else are equally responsible, both can make changes to the account, both credit reports and scores reflect this account on both people.
Authorized User - You are responsible for the account, your authorized user is allowed to use your account. Think your teenager. Your credit report and score reflect the card's history, but the authorized user gets no reporting from this card - it's YOUR card you are letting them use.
"Piggy backing" is a term for authorized user. They aren't responsible for the payments, why should they get the positive rating from the account being maintained?
The "illegal" part came in when strangers would auction off tradelines to add authorized users to. Jim has a credit score of 800 and a card with a credit limit of $25,000 and he has had this for 20 years, never 1 late. Bob has spotty credit, scores high 500s. Bob gives Jim $500 to add him as an authorized user. Jim adds Bob, Bob's scores jump with the new line reporting on his credit. The next month, Jim removes Bob as an authorized user, but Bob's report STILL reports that line! Bob never had any access to the account, never even knew the full account number, so Jim was never at risk. BUT it isn't as accurate protrayal of Bob's history, and it isn't fair to everyone else. The change was that your credit score no longer looks at AU accounts, so Bob's score now is more accurate to HIS history, not the history he bought from Jim.
Does that help? |
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hummingbird
Joined: 10 Jan 2008
hummingbird's page
Posts: 128
660 Magic Points
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Sat Mar 08, 2008 6:31 pm
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| What if someone ruined your credit that way.Is that possible? |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
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Sun Mar 09, 2008 12:38 am
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| Okay now i am understanding alot better. So if I am an authorized user say on my husbands account it only raises his credit score not mine? That how the couple cards we have are now. I am just an authorized user. had I known I wasn't getting any credit for making larger than asked payments which are always on time I would have opened my own. I would like to see my score a little higher (I'm in the 500-600 range) but I would not consider any of the other ways to do it. Much rather achieve this on my own. |
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goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3735
10 Magic Points
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Sun Mar 09, 2008 1:53 pm
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It is a good idea to work on your own and have your husband work on his separately, when borrowing together they will almost always take the higher of the two scores into consideration. Especially in a mortgage situation, at least that is the way that it worked for us.
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