Submitted by mccrae550 on Sun, 03/02/2008 - 01:17

what's the process to piggybacking? I have the person just don't know where to start??? Thaks for any advice. :?

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.

Sun, 03/02/2008 - 02:14 Permalink
tony (not verified)

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. :(

Sun, 03/02/2008 - 13:37 Permalink

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.

Sun, 03/02/2008 - 16:45 Permalink

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!

Mon, 03/03/2008 - 15:17 Permalink

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.

Tue, 03/04/2008 - 04:23 Permalink

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.

Tue, 03/04/2008 - 13:36 Permalink

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?

Fri, 03/07/2008 - 16:46 Permalink

What law changes?
You either take joint responsibility for a debt, or you don't get the FICO score boost.

Fri, 03/07/2008 - 23:07 Permalink

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?

Sat, 03/08/2008 - 13:46 Permalink

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?

Sat, 03/08/2008 - 17:31 Permalink

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.

Sun, 03/09/2008 - 00:38 Permalink

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.

Sun, 03/09/2008 - 13:53 Permalink

Well I have one card where my hubby is on mine and one where I am on his. Thats fair I think.But I make sure they are both paid and on time .If I cannot afford a lot more than the minimum ,I will at least pay any at all over even if its only 1 dollar.

Mon, 03/10/2008 - 17:32 Permalink

Good idea. If you look at the interest its usually three quarters of the monthly payment that they are asking for. I am hoping to get rid of our credit card debt this year.. We accumulatewd quite a bit during our move. Thought we took out en ough money through a bank loan and come up short. We used income tax to pay off the smaller debts now comes the biggie. I am confident that it will be gone this year.

Tue, 03/11/2008 - 01:46 Permalink

The idea of piggybacking is definitely a nasty idea. It is like living a parasitic life. It is good that the system is not given any importance at all.

Hi hummingbird,

Paying the minimum also keeps your credit in a good shape. Good that you guys are really doing it seriously.

Tue, 03/11/2008 - 05:32 Permalink

I totally agree. It takes you alot to get your own good credit score why take the chance in letting someone else screw it up. In the case of someone who messed their credit up on their own you are really taking a chance by adding them.. It is like giving a drunk the keys to your car.

Wed, 03/12/2008 - 19:28 Permalink

Piggybacking was initiated to help the younger members of the family by the parents. e.g. the father allowed his son a piggybacking on his report. Later on this was misused and companies sprang up charging money for doing the same. They used reports of any good credit holder and played with the report of the poorer one. I never liked this part of it. Relief that it is not considered anymore.

Thu, 03/13/2008 - 07:28 Permalink

Our rate is less than 10%.That is good but the rate for cash withdrawal is over 20% ,We never have used that part though.

Fri, 03/14/2008 - 15:09 Permalink

I think piggybacking when it comes to helping you children is a good thing. It would figure some company trying to take advantage and make a few dollars would come up with a way to make it sound dishonest. Personally when I first read about piggybacking that was my first thought.

Fri, 03/14/2008 - 23:23 Permalink

I recieved a phone call from a company that said they wanted to lower our Interest rate but our card had to be more than 10% Interest rate which ours was not. Has anyone ever received a call like that?

Sun, 03/23/2008 - 23:34 Permalink

No but I was recieving calls where a machine was saying "the interest rate on credit cards are going up. We would like ti help you. You ahve qualified.",and so on. I just delete the message cause I considered it a telemarketer. I have problems trusting anyone in the credit field.

Mon, 03/24/2008 - 23:54 Permalink

When you have been in a bad credit situation you are always a little leary, you will want to look at the long term of this, how long will the intrest rate stay down, is it only for a short period of time or is it forever, read the fine print. It is often hard to get good information off them over the phone, I would say send the information to me by mail, I will review it and if it is a good offer then I will respond then. Don't do it unless you understand all the terms and conditions.

Tue, 03/25/2008 - 01:24 Permalink

I don't even mess with these people. I figure if I need them I will call them. the are as bad as CA's. Once you talked with them for 2 seconds they keep calling back.

Wed, 03/26/2008 - 00:41 Permalink

I recieved a call, a few days ago. ..from a 'credit card consolidation company'. According to THEM, they "had my file in fron of them and they were looking at the $10,000.00 debt I have on my credit cards (LOL)". THEN they asked me to "verify my information to them." OMG!! Did they really think I was that stupid. First of all, I DO have a card...but, just 1. And the credit limit, on this card is only $300.00. I guess I aquired another ZILLION dollars in credit card debt overnight!! Watch out for these scams....all they want is your information.

Wed, 03/26/2008 - 22:22 Permalink

That sounds more like someone trying to steal your identity. Maybe they thought they could get more info from you or have you make payments through a checking account and then rip you off. Either way..too risky.

Wed, 03/26/2008 - 22:42 Permalink

yep..that what it sounded like to me, too. With 'Piggybacking'...does that also count, if someone co-signs for you? Or.....just if you are using someone else's credit?

Thu, 03/27/2008 - 05:02 Permalink

I am not sure but I doubt it has anything to do with co-signs. I think the person has to be signed on an open account (like credit cards) as someone who has access to use open funds.

Thu, 03/27/2008 - 21:07 Permalink

Just sounds more reasonable to me. No expert here on the subject. Just putting my penny in.

Sat, 03/29/2008 - 13:31 Permalink

OK If I am on a loan as spouse and my hubby pays late that does not effect my credit score?

Tue, 04/01/2008 - 15:55 Permalink

If you are on a loan as a co borrower and your spouse pays late both of your credit scores will reflect the negative mark .You are both liable for the loan.That is really why it is best to try a keep separate accounts.

Sun, 04/06/2008 - 14:14 Permalink

smart idea, then if one of you are late it would not affect they others scores.

Sun, 04/06/2008 - 23:29 Permalink

As far as I know, unpaid child support stays in your credit report till the time you pay it off. Once you pay off your child support obligations, you can report the same to the three credit bureaus by certified mail with proof of payment and the bureaus will get it removed from your credit report.

Fri, 03/27/2009 - 09:50 Permalink