How to piggyback on a credit score

/2010-04-06/


Are wee able to piggyback on parents' or life partners' great credit score?

The practice of "piggybacking" is a legitimate way to help relatives or friends boost their credit scores. You just add the person as an authorized user  of your credit card, and your good credit history could be transfered to your child's (spouse, friend) credit files.

The credit-repair experts insist that the process is completely safe, however both parties in the process take a risk by sharing their sensitive financial information, incl. Social Security and credit card numbers.

A step to a better credit score

Many families use the piggybacking practice to help build good credit history or improve the credit score of their relatives. For example, your children, as authorized users of your credit card share your positive account activity which will appear on their credit report. Once they're removed from this credit card records, it will take some time to get thecredit score information removed from their credit report. Thus your children may benefit from it in the long run.

Piggyback loan

Some lending companies found a way to avoid the conventional PMI (private mortgage insurance) by creating two loans: one for 80% of the whole price and another one - for 10% of the whole price. The remaining amount of 10% gets paid via down payment. That second loan is called a piggyback loan (or 80/10/10 loan).

Is this smart practice still effective now, in 2012? The answer is - yes.

Top Savings Accounts


More Articles
News Headlines
Credit Score Companies Reach $22M Settl...
Published:Fri, 21 Nov 2014 04:30:59 -0800
Three companies selling credit monitoring services entered a $22 million settlement with the FTC for billing consumers for products they didn't order.......
Could your credit score predict your he...
Published:Fri, 21 Nov 2014 12:30:00 -0800
Like it or not, your credit score can predict whether you'll qualify for a mortgage, an auto loan or, in some cases, even a job. Earlier this week, a new study was released cl......
Good Business, Bad Credit? Wait to Ask ...
Published:Mon, 24 Nov 2014 04:40:49 -0800
Even with a profitable company, a business owner with poor personal credit doesn't have great options for financing......
Credit Score May Reflect Cardiovascular...
Published:Mon, 24 Nov 2014 05:49:02 -0800
A new analysis has found a strong correlation between a person’s credit score and his or her cardiovascular health, according to the findings published in the journal Proceeding......
FICO and CTOS Introduce World's Lea...
Published:Mon, 24 Nov 2014 16:00:00 -0800
KULA LUMPUR, Malaysia, Nov. 25, 2014 /PRNewswire/ -- FICO (FICO), the predictive analytics and decision management software company, today announced that the largest private cred......