Personal Finance

Don’t Waste Your Money on Piggybacking Services

Comments 6 Comments

When FICO announced that they planned to stop considering authorized user accounts in their credit scoring models, it seemed like we’d seen the last of the piggybacking industry. Many of these credit repair companies closed shop pretty fast, sites were pulled down across the web.

The FICO change was, in fact, designed specifically to put piggybackers out of business. Piggybacking is the practice of selling consumers with bad credit access to healthy, established credit card accounts. Because of a loophole in the credit system, someone with bad credit could buy into an account and see their credit increase fairly dramatically.

Unfortunately, millions of innocent consumers who had legitimately opened authorized user accounts will also be damaged by this FICO change when it starts in September. And FICO is not the only one paying attention to piggybackers. TransUnion’s mortgage scoring division developed a way to "sniff" out piggybacked accounts and VantageScores have always ignored authorized user accounts.

However, it looks like there are a couple piggybackers who aren’t ready to back down. In a press release today called "Credit Piggybacking Is Unsuccessfully Attacked," one piggybacking company touted that they were not being shut down by these changes to the credit industry:

Using a Robin Hood-like mentality, [company name redacted] is borrowing from
the rich and lending to the poor and credit agencies are on a mission to
destroy the tactic.

Credit repair has never seemed so noble! According to the release, the piggybacking company is continuing to sell their $600+ services with the rationale that the credit industry changes will take a while to implement. No matter that FICO, the largest credit scoring company in the US, is rolling out the change next month. And don’t mind the fact that any improvements to your score gained through an authorized user account will be wiped out when the changes are implemented.

Do me a favor, don’t sign up for a piggybacking service. Save your $600 and open a secured credit card in your own name. Establish your credit the right way and you won’t have to worry about it in the future. Share your feedback in the comments section below!

Emily‘s Communication Director and former TransUnion credit expert. Emily writes about credit reports, credit scores, loans and personal finance as the moderator.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • Carlos Cruz

    The absurdness to ‘piggyback credit’ is self-defeating. By using such a service may very well extend you a credit line, it may very well be to your own future personal credit destruction.
    Quite simply, if you receive credit that you would not have received on your own, more than likely your current income will not be able to support the additional monthly payment burden.
    In addition, as it has alway been true, most people do not take care of that which they have not worked for. Meaning that because the piggyback method allowed you to receive a credit line rather quickly without having to ‘work for it’, one is more inclined ‘not’ to take good care of it.
    Resulting in an ‘OH WELL…’ attitude if the day comes that they lose the credit line.
    Better to build your own credit the ‘right way’ rather than taking any short cuts.
    God Bless.

  • Maria d.

    I used to have a perfect credit until a huge family problem happened and I missed payment on some of my credit cards and that was the end of my credit.The lending industry treated me with such discrimination. The author of the article and Carlos Cruz obviously dont hane any problem with their credits. I am an educated professional with good paying job and pays my bills on time. I have 10.5 interest rate on my mortgage and paying it on time. You people just pray nothing happens in your life and finances. The “right way you are talking about does not exist. The credit and lending industry try so hard to keep the credit challenged people like us in the bottom, because they make the most money on us. That is the truth. Stop the HYPOCRACY!

  • joeJherkovvac

    You want my advice? Get a few trade lines, MAX THEM THE #($*# OUT ! ! ! Then just cancle/start over, know what i mean? You can get 200K or 300K in credit then just spend-spend-spend. When you start over, you will have done good. Why not? THey been arfin’ up u’re butt for…how long now?!? Isn’t it time to give ‘em a lil’ bit of cumback !??! Stickin it in, movin’ in out, and back in. NO lube, no kindness. Thais ain’t makin’ love, this is all about f#L#J#J.

  • Jeff

    The article is over 4 years old, I just tried the piggy back system last month and it worked for me. All my cards were at a zero balance, everything paid on time and my fico score was only a 702, I’ve been trying to get it to a 720 to get the lowest rate on my house refinance, I used a company called and my fico jumped to 754, I got a 30 year fixed at a 3.9% interest rate on my mortgage. BTW I didn’t have to spend any money on the piggy back system, they piggy backed me for free for letting them use 3 of my other cards on their site.

  • dsad

    This article is way inaccurate. FICO 08 does still score AU accounts.

    • Credit Experts

      The article was published in 2007, and that the information was accurate when it published. The bureau may have since changed its mind.

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