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
Try boosting credit score on your own...
Published:Mon, 07 Jul 2014 04:15:02 -0700
Q: I make pretty good money, but my credit score is low.......
How Student Loans Affect Your Credit Sc...
Published:Mon, 07 Jul 2014 05:41:00 -0700
We've all heard the daunting numbers: The United States now holds $1.2 trillion in collective student loan debt, and this year's college graduates are leaving school with ......
5 Common Credit Card Questions...
Published:Mon, 07 Jul 2014 03:30:00 -0700
Credit cards may be easy to use, but are actually complex financial instruments. So it's no surprise users have questions. Here are five common ones.......
4 Ways You May Be Unknowingly Hurting Y...
Published:Mon, 07 Jul 2014 21:00:00 -0700
Tammy listed her son as an authorized user on one of her credit cards to help him build his credit history.......
Nine myths about credit score and credi...
Published:Mon, 07 Jul 2014 20:37:58 -0700
Take for instance, the distinguishing factor between credit score and report. Most believe these words can be used interchangeably.......