Its definitely effective because once your credit gets attached to some one with a very good credit report, your report shows the same as the better one and it helps you in your purpose. Your score shoots up to any high value.
However this is a very unethical practice and Fair Isaac Corp has decided to curb this with a new FICO model. Its not implemented but may be down the line.
I've been reading the forum on piggyback companies. I'm finding some people are on 'opposite sides' of these companies. can someone explain thier 'service' to me? Does anyone know of names?..just want to check some out for myself.
Clearly stating the fact...the piggybacking companies are the one who attaches your credit file to a better one.
What happens is that a borrower who is comparatively less creditworthy approaches a company that offers credit repair. These companies attach the authorized credit cards of consumers with good credit with those having bad credit. They pay these consumers to allow them to include these low credit people to be listed in their account.
Now the credit record also shows on that of the less creditworthy consumer increasing his credit score and credit taking capacity. This is however very unethical. Fair Isaac Corporation will take action against this very soon.
Mmm....it doesn't sound very 'legit' to me. I'm not saying they atr not legit companies. So......you're saying ( correct me if I'm wrong, please) these comapnies can find 'good' credit for you? How do they do this?Do they find people with good credit and 'attach' the good credit to the bad?...and pay these people 'on top of it'? That means, the people with good credit just lowered their credit score? ( If I have this entire 'senario' right) people actually let companies do this? Kind of 'merging' 2 CR's into one? And......the CR comapnies pay people to use use the 'good' credit, while the 'bad' credit people pay the company? Please let me know if I understand this correctly.
Piggybacking is something that is frowned upon by credit bureaus when it is not a family member and people made it into a business (offering money to get associated with X credit line). Because this tactic has been overused, I have recently heard that this will no longer be allowed. So, make sure you do research before you spend money to piggyback, as it may do nothing to your credit score. When it was allowed, it definitely helped improve your credit score, but you don't want to spend money then find out it will be ineffective in helping you meet your goal.
Piggybacking was usually done by a member of the family with good credit rating to give a start to a younger member of the family. This was done with good intentions by giving chance to a novice.
However things that start as amateur, land into the industry and culminate into a fraud system somehow. I am not saying it is always a fraud but there are instances.
Fair Isaac has confirmed that from September 2007 piggybacked accounts will not be considered as legitimate. So this will reduce the scores of people who are holding onto someone else's credit line.
Seasoned trade line or piggybacking uses a creditworthy borrowers accounts to improve the credit rating of a third party.
If within family it is done without any cost but out in the market some credit repair companies charge $500 to $2000 for this. The creditworthy borrower received a meager amount $100 to $150 (which is atrocious) and the rest goes to the brokers pocket (insanity).
FTC found out that technically this is legit but the agencies do not accept it as legal.
As mentioned in previous posts Fair Isaac has taken necessary steps. This has been stopped because of FCRA and privacy laws due to which there was no way for the lender to know the other party of the authorized account...leading to the risk of fraudulence.
I believe the only true valid use of this is with a family member in your household. Fico is taking steps to eliminate Au's from scoring,but will run into a major problem very soon when it finds itself in non compliance with the Equal Credit Opportunity Act. They will have to come up with a way to discount Au's but still include qualifying ones into scores. My wife is au on all my non joint accounts just as I am on her accounts. Since I live in a community property state,I think this is the only fair way to report our accounts.
To clear up some confusion about this, it may indeed be considered unethical as it is in a way "cheating" the scoring system. It is not however stealing someone elses good credit because in order to be stealing their good credit, that would mean that you get the good credit and they do not. The loophole is this, an authorized user, (under the old fico model which on 2 of the 3 CRAs is still in effect) will have all positive (or negative) history from that card reported to their credit. It does not change the original cardholders credit, simply adds the history to the piggybackers credit. Please if you only get one piece of clarification from this, let it be that the original cardholder's credit is not at all effected by this. I would not recommend going through the agencies that offer this for a fee, but you can certainly do it through a family member. If you do so, know that within the next 12 months all of the CRAs will have gone to the new fico model which ignores authorized user accounts.
If the authorised users account will be ignored what is the use going for it? Say if I go for a piggybacking on my fathers account and I get the good credit history tagged to mine, wont he be responsible for the items recorded in my report? If I am not able to pay my bills will he not have to do the same on my behalf?
What after another year? The auth accounts will be ignored. That means all the history of my fathers account will be ignored? Then why go for an authorised account?
I need the clarifications please :). any help will be appreciated.
Say if I go for a piggybacking on my fathers account and I get the good credit history tagged to mine, wont he be responsible for the items recorded in my report?
No. He's responsible for his bills. It's just a calculated risk you'd take to have AU on his accounts.
If I am not able to pay my bills will he not have to do the same on my behalf?
No. You'd be an AU on his accounts. For your credit to affect him, he'd have to be AU on your accounts.
What after another year? The auth accounts will be ignored. That means all the history of my fathers account will be ignored?
Yes, but I thought FICO was ignoring AU's beginning this year.
The creditor asks for your social security number whenever you apply for a new line of credit. Now when, the account is opened, the creditor reports the new account to the credit bureaus along with your social security number and so the new account gets automatically listed in your credit report and your credit history starts building up from there.
I just came across this thread and noticed my company, BoostMyScore.net was mentioned. There are several myths regarding Authorized User tradelines, many of which appear here. I would like to address each and every one, but I don't even know where to begin. The primary point that needs to be addressed is that piggybacking does continue to exist in much of the same way that it always has, regardless of what the Fair Isaac Corporation's PR department has tried to force us all to believe. Their credit scoring model, FICO08 is still not in use by any lenders, even though it is now mid-2010. Even if it were in use, we have tested our piggybacking system against their prototype, and it still works the exact same way that it always has. The information referred to within this thread was derived from intentionally misleading press release statements made by FICO to salvage their credibility - no pun intended - with their clients, the banks. In all actuality, Regulation B of the Equal Credit Opportunity Act expressly prohibits banks from ignoring any credit lines present in a credit report held by an applicant for which they are authorized to use, regardless of their definition of "legitimate." I hope this addresses most of your concerns. If not, please know that I am always available to answer any questions you might have.
– Bill Airy 1-800-531-1472
...and, oh yeah, by definition, an authorized user is never responsible for any debts owed on someone else's account they are attached to. Remember, an AU never signs a contract with the credit card company...
Let me get this right. The method of credit reporting is ethical?? And the owner of the debt can sell your debt to someone else in order to make a profit off you and harrass you with collections, and hold this over your head for 7-10 years in a public credit agency, and that is ethical??
But when the debtor reverses this process into their favor by buying some elses credit, and that is viewed unethical?? LMAO!! Sorry, I am not buying it.
What is good for the goose is also good for the gander. If I pay to better my credit score in some scoundral credit reporting agencies, so I can get lower interest rates and be able to put a roof over my familys head, I say what is fair in love and war. It is not illegal, and it surely is not unethical IMO.
H Firstphilosophy,
Its definitely effective because once your credit gets attached to some one with a very good credit report, your report shows the same as the better one and it helps you in your purpose. Your score shoots up to any high value.
However this is a very unethical practice and Fair Isaac Corp has decided to curb this with a new FICO model. Its not implemented but may be down the line.
Hey it is very effective. My score went up by 200 points.
It helps a lot.
But I find this practice completely unethical.
credit
Can someone explain a "piggybacking company?" I've never heard of something like this. Are they effective?
Does anyone know of any contact information for any of these piggybacking companies?
piggyback companies
I've been reading the forum on piggyback companies. I'm finding some people are on 'opposite sides' of these companies. can someone explain thier 'service' to me? Does anyone know of names?..just want to check some out for myself.
Clearly stating the fact...the piggybacking companies are the one who attaches your credit file to a better one.
What happens is that a borrower who is comparatively less creditworthy approaches a company that offers credit repair. These companies attach the authorized credit cards of consumers with good credit with those having bad credit. They pay these consumers to allow them to include these low credit people to be listed in their account.
Now the credit record also shows on that of the less creditworthy consumer increasing his credit score and credit taking capacity. This is however very unethical. Fair Isaac Corporation will take action against this very soon.
piggybacking comapny
Mmm....it doesn't sound very 'legit' to me. I'm not saying they atr not legit companies. So......you're saying ( correct me if I'm wrong, please) these comapnies can find 'good' credit for you? How do they do this?Do they find people with good credit and 'attach' the good credit to the bad?...and pay these people 'on top of it'? That means, the people with good credit just lowered their credit score? ( If I have this entire 'senario' right) people actually let companies do this? Kind of 'merging' 2 CR's into one? And......the CR comapnies pay people to use use the 'good' credit, while the 'bad' credit people pay the company? Please let me know if I understand this correctly.
Piggybacking company
Piggybacking is something that is frowned upon by credit bureaus when it is not a family member and people made it into a business (offering money to get associated with X credit line). Because this tactic has been overused, I have recently heard that this will no longer be allowed. So, make sure you do research before you spend money to piggyback, as it may do nothing to your credit score. When it was allowed, it definitely helped improve your credit score, but you don't want to spend money then find out it will be ineffective in helping you meet your goal.
credit
"Overused?".I've read alot about Piggybacking. It seems like your 'stealing' someones good credit to make yours better.....ya know??
Piggybacking was usually done by a member of the family with good credit rating to give a start to a younger member of the family. This was done with good intentions by giving chance to a novice.
However things that start as amateur, land into the industry and culminate into a fraud system somehow. I am not saying it is always a fraud but there are instances.
Fair Isaac has confirmed that from September 2007 piggybacked accounts will not be considered as legitimate. So this will reduce the scores of people who are holding onto someone else's credit line.
Seasoned trade line or piggybacking uses a creditworthy borrowers accounts to improve the credit rating of a third party.
If within family it is done without any cost but out in the market some credit repair companies charge $500 to $2000 for this. The creditworthy borrower received a meager amount $100 to $150 (which is atrocious) and the rest goes to the brokers pocket (insanity).
FTC found out that technically this is legit but the agencies do not accept it as legal.
As mentioned in previous posts Fair Isaac has taken necessary steps. This has been stopped because of FCRA and privacy laws due to which there was no way for the lender to know the other party of the authorized account...leading to the risk of fraudulence.
I believe the only true valid use of this is with a family member in your household. Fico is taking steps to eliminate Au's from scoring,but will run into a major problem very soon when it finds itself in non compliance with the Equal Credit Opportunity Act. They will have to come up with a way to discount Au's but still include qualifying ones into scores. My wife is au on all my non joint accounts just as I am on her accounts. Since I live in a community property state,I think this is the only fair way to report our accounts.
To clear up some confusion about this, it may indeed be considered unethical as it is in a way "cheating" the scoring system. It is not however stealing someone elses good credit because in order to be stealing their good credit, that would mean that you get the good credit and they do not. The loophole is this, an authorized user, (under the old fico model which on 2 of the 3 CRAs is still in effect) will have all positive (or negative) history from that card reported to their credit. It does not change the original cardholders credit, simply adds the history to the piggybackers credit. Please if you only get one piece of clarification from this, let it be that the original cardholder's credit is not at all effected by this. I would not recommend going through the agencies that offer this for a fee, but you can certainly do it through a family member. If you do so, know that within the next 12 months all of the CRAs will have gone to the new fico model which ignores authorized user accounts.
If the authorised users account will be ignored what is the use going for it? Say if I go for a piggybacking on my fathers account and I get the good credit history tagged to mine, wont he be responsible for the items recorded in my report? If I am not able to pay my bills will he not have to do the same on my behalf?
What after another year? The auth accounts will be ignored. That means all the history of my fathers account will be ignored? Then why go for an authorised account?
I need the clarifications please :). any help will be appreciated.
Say if I go for a piggybacking on my fathers account and I get the good credit history tagged to mine, wont he be responsible for the items recorded in my report?
No. He's responsible for his bills. It's just a calculated risk you'd take to have AU on his accounts.
If I am not able to pay my bills will he not have to do the same on my behalf?
No. You'd be an AU on his accounts. For your credit to affect him, he'd have to be AU on your accounts.
What after another year? The auth accounts will be ignored. That means all the history of my fathers account will be ignored?
Yes, but I thought FICO was ignoring AU's beginning this year.
Thanks a lot for the information. A lot is clear to me now regarding an AU. FICO has been ignoring AU since September I think.
piggyback
when I get added to an account how does it help me will they ask for my ss#
The creditor asks for your social security number whenever you apply for a new line of credit. Now when, the account is opened, the creditor reports the new account to the credit bureaus along with your social security number and so the new account gets automatically listed in your credit report and your credit history starts building up from there.
piggybacking
there is a site that does this it is boost my score . net have never used them but remember if they stop paying your responsible for the debt
piggybacking
I just came across this thread and noticed my company, BoostMyScore.net was mentioned. There are several myths regarding Authorized User tradelines, many of which appear here. I would like to address each and every one, but I don't even know where to begin. The primary point that needs to be addressed is that piggybacking does continue to exist in much of the same way that it always has, regardless of what the Fair Isaac Corporation's PR department has tried to force us all to believe. Their credit scoring model, FICO08 is still not in use by any lenders, even though it is now mid-2010. Even if it were in use, we have tested our piggybacking system against their prototype, and it still works the exact same way that it always has. The information referred to within this thread was derived from intentionally misleading press release statements made by FICO to salvage their credibility - no pun intended - with their clients, the banks. In all actuality, Regulation B of the Equal Credit Opportunity Act expressly prohibits banks from ignoring any credit lines present in a credit report held by an applicant for which they are authorized to use, regardless of their definition of "legitimate." I hope this addresses most of your concerns. If not, please know that I am always available to answer any questions you might have.
– Bill Airy 1-800-531-1472
Piggybacking
...and, oh yeah, by definition, an authorized user is never responsible for any debts owed on someone else's account they are attached to. Remember, an AU never signs a contract with the credit card company...
And we care about Ethical??
Let me get this right. The method of credit reporting is ethical?? And the owner of the debt can sell your debt to someone else in order to make a profit off you and harrass you with collections, and hold this over your head for 7-10 years in a public credit agency, and that is ethical??
But when the debtor reverses this process into their favor by buying some elses credit, and that is viewed unethical?? LMAO!! Sorry, I am not buying it.
What is good for the goose is also good for the gander. If I pay to better my credit score in some scoundral credit reporting agencies, so I can get lower interest rates and be able to put a roof over my familys head, I say what is fair in love and war. It is not illegal, and it surely is not unethical IMO.
pQimDteNhAQ
ZnV7BZ Really enjoyed this post.Really looking forward to read more. Much obliged.