By: Heather Hanks May. 13, 2019
Always check with the bank or credit lender you are working with to ensure that your activity will be reported. It’s also a good idea to make sure the activity of the person you are piggybacking with shows up on your report, too. This allows you a credit boost simply by association. On the other hand, your credit activity may show up on their account, too. Use this as motivation to make good financial choices to avoid ruining the relationship of the person you are piggybacking with, especially if you know them personally.
Here are some of the primary benefits of piggybacking credit:
Here are some other potential risks and drawbacks of credit piggybacking:
There are two primary types of credit card piggybacking. The first is traditional piggybacking, which occurs when both parties know each other. The second has called for-profit piggybacking. This occurs when someone pays to be on someone else's account as an authorized user.
Are you looking to piggyback for credit card purposes? You can do so in three easy steps.
Ask loved ones or family members if they are interested in allowing you to become an authorized user on their account. Once you find someone to work with, you can move on to step two.
If your loved one already has an account but their bank does not allow the service, then you want to search for professional trade line company. Once you find a professional company, contact them and inquire about buying a tradeline for piggybacking purposes.
Once you are approved, you can begin to use your new line of credit to help build your credit.
Have you ever asked yourself, “Can I piggyback my credit score?” The answer is yes! Piggybacking is legal according to the Equal Credit Opportunity Act 1974 and the Federal Reserve Board Regulation B. Some banks or credit lenders encourage the use of piggybacking. You determine whether or not your bank provides this service by visiting their website and searching for the term “authorized user.” This can help you learn how to add someone to your account as an authorized user or how to piggyback off someone else.