Credit card piggybacking is using someone else’s good credit to raise your own score by being added on as an authorized user on their account.
If you find yourself with a low credit score, you probably know how difficult it is to borrow money and how you are penalized by higher interest rates and credit denial. With credit card piggybacking, you are made an authorized user on someone else’s credit card account, one with a good credit score. By doing so, your credit score will improve.
This tactic has been used for sometime by parents wanting to give their children a head start with building their credit history.
If you have a close family member that has an established credit card with a good credit history, ask them to add you as an authorized user. Have them call their bank to ensure the bank will report the full credit history from that account on your credit profile. The credit card should have a perfect credit history, be opened for three or more years, and have a low utilization rate. This means the balance should be 30% or less of the credit limit.
Fair Isaac had previously announced that its FICO 08 scoring model would no longer allow piggybacking. However, as of today most lenders are not using the FICO 08 scoring model. FNMA OR FHLMC has also not adopted it.
Questions about how piggybacking can help you raise your credit score?