What is Piggybacking?


Piggybacking is a credit building tactic that allow a person who is trying to build credit to “piggyback” onto the credit history of someone who already has excellent credit. This is done via the use of authorized user accounts. the person with the excellent credit history would add the person who is trying to build credit onto their credit card as an authorized user. This action alone causes the entire history of the account to be reported as a tradeline on the credit report of the person trying to build the credit. This added excellent credit history allows the person wanting to build credit to realize score improvements of 50 points or more depending on the strength of the original credit line used.

Key factors to understand are:

  • Piggybacking is utilizing the credit of others to develop higher credit scores.
  • Effectiveness will be based on individual credit account you have been added to which is the age, limit, balance, and payment history of the account you are being added to.
  • Length of time which the information reports to the bureaus for authorized users can be short, many times you are removed within 1-2 month which results in the tradeline being removed from your credit report as well.
  • Quickly closing on any loans you are seeking once the score increase hits is considered a best practice. basically you use it or lose it.