Piggybacking ...
PIGGYBACKING: Despite its’
virtually unlimited potential, piggybacking is not used by
nearly as many consumers as it should be. It’s easy,
effective, and extremely fast. Unfortunately, it’s mostly
used among parents and siblings while those who can really
benefit stay in the dark.
How it works. Almost every credit card or credit account
will allow the primary account holder to add on (at a later
date) what’s known as an “Authorized User” or “Secondary
Account Holder”. In most cases, when this is done, the
entire account history (retroactively) gets posted to the
authorized users credit report regardless of their current age
or credit history!
For example. If it’s a
credit card with a $10,000 limit which has been paid as agreed
for the last 10 years, then that complete history will be
posted to the authorized users’ credit report. I once saw
a clients’ credit report who used this technique with his
mother. He was only 24 at the time and he had a $15,000
Gold credit card on his report with history going back 11
years! I laughed as I thought to myself that this kid
would have had to be approved when he was 13 years old for this
account to be his!
As you can see, this strategy is usually only used by parents
and their children and in most cases with no regard to the
benefits the children are reaping credit wise! In fact,
in recent years, due to its’ effectiveness, this technique has
led individuals with excellent credit scores to “rent out”
authorized user accounts on one or even multiple credit cards
in return for a fee! I once recall seeing an ad in USA
TODAY for just such an opportunity. Like most good credit
loopholes, I’m sure this methods’ days are numbered much like
what may be the case with...
Advanced Credit
Profiling...
-by Terry Price
(C) Copyright Terry Price
All Rights Reserved
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