What is Piggybacking Credit?

Piggybacking on someone’s credit card can be an excellent way for the person piggybacking to improve their credit. It’s more valuable in some situations than in others. But how does it work? Is it legal? Are there risks?

What is Piggybacking Credit?

Piggybacking credit as an authorized user can occur in innocuous arrangements like parents helping their children build credit but can also happen when a for-profit credit repair company connects two individuals and takes a cut.

How Does Piggybacking Credit Work?

When a person becomes an authorized user on someone else’s account, they receive the entire history reflected on their own credit report.

What is an Authorized User?

Authorized users can experience the benefits of the primary cardholder’s payment history, credit score and overall credit history.

Piggybacking Credit Between Parents and Kids

If you allow a child to use the card, it can also teach financial responsibility and give them access to money in an emergency.

Hiring a For-Profit Piggybacking Service

For-profit piggybacking is the process of renting your excellent credit to a stranger in exchange for payment. You can use a profit-seeking company as an intermediary, called a tradeline company.

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