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
Best Ways To Repair Your Credit Score...
Published:Mon, 27 Oct 2014 08:40:00 -0700
Follow these 6 steps and you'll be on your way to a better credit score.......
The 5 Scariest Credit Card Fees -- And ...
Published:Mon, 27 Oct 2014 05:35:00 -0700
You'll get hit with a late fee if you're (you guessed it) late in making a payment on your credit card bill. Since payment history makes up 35 percent of your credit score......
Paul has a perfect credit history so wh...
Published:Mon, 27 Oct 2014 09:33:09 -0700
Actor Paul Harris has a credit score that is just about as good as you could get. But a small mistake on his credit file meant he was turned down for a phone contract.......
Will Charging Your Holiday Shopping Hur...
Published:Sat, 25 Oct 2014 14:30:51 -0700
If you are like millions of other Americans and plan on charging some of your holiday purchases, you may ask yourself How much credit card debt is OK to have, and how much will hu......
Balance transfer impact on your credit ...
Published:Fri, 24 Oct 2014 05:00:00 -0700
Moving a high-interest card balance to a lower-interest card you already have shouldn't hurt your score, but there are other issues to consider......