If you’re looking to boost your credit, you might consider piggybacking on the good credit of a close friend or family member, especially if you have poor credit or you are just getting started in the world of credit building.
Piggybacking is a unique method where someone will use another person’s credit to build their own. When piggybacking, an individual may get a co-signer or become an authorized user. They may also choose to open up a joint account together if they choose.
Does Piggybacking Actually Work?
Absolutely! People wouldn’t keep doing it if it didn’t work. Piggybacking can result in a solid credit boost, though it’s recommended you don’t have any derogatory marks on your credit report first, or have done what you can to clean them off.
Piggybacking works to boost scores, not get rid of negative information that is already there.
Two Types of Piggybacking
There are two types of credit piggybacking that exist currently, including traditional piggybacking and for-profit piggybacking.
Traditional Piggybacking
Traditional piggybacking is the method of becoming an authorized user on the account of a friend or family member so that you can benefit from their payment history. Of course, you’ll want to make sure that the friend or family member that you choose has perfect payment history and good standing with the credit bureaus to begin.
For-Profit Piggybacking
For-profit piggybacking is working with a company that connects you with consumers that have good credit so you can become an authorized user on their accounts. In most cases, these people are complete strangers.
There are many people looking to these kinds of companies to build their credit nowadays, as not everyone has access to close friends or family members with great credit that are willing to let them become authorized users.
Unfortunately, because the market has grown so much in the past decade, there are many companies out there that are working in ethical gray areas and profiting off of people’s misunderstandings of the method.
When finding a company to connect you with authorized user tradelines, it is extremely important to find a reputable and reliable company that has a history of positive reviews. Make sure to look at the company’s website and find past accounts from REAL users so you can get a better idea of the company’s reputability.
Final Thoughts – Is Piggybacking Right For You?
By now, you should have a better understanding of what to do before becoming an authorized user on someone else’s account. There are many ways to do so, but one of the best ways is purchasing authorized user tradelines.
When you are an authorized user, the tradelines you purchase go directly onto your credit history, potentially offering you an increase in your credit score. Essentially, you are given the opportunity to obtain credit from other life purchases from someone else’s positive history.
If you have any other questions regarding authorized user tradelines, make sure to get in touch with us here at Boost Credit 101!
