Piggybacking credit and piggybacking tradelines is the topic of this article. Piggybacking is the same thing as adding authorized users, adding trade lines, etc. It’s all synonymous.
In short, this process refers to hitching a ride on someone else’s good credit standing.
The origins of piggybacking credit – a very brief discussion.
The ability to piggyback off of someone’s credit (or more accurately stated, their credit card), came about as the result of the 1974 Equal Credit Opportunity Act.
This implementation of this law gave rise to the unintended consequence of piggybacking credit. To understand in more detail, you need to read the file below.piggybacking credit
Does piggybacking still work?
Despite what the “rumor net” will tell you, piggybacking credit has not changed since 1974.
A lot of people search Google for piggybacking credit followed by the current year as if the concept has changed. All you have to do is keep up with the regulation that implemented this concept to end this search. When the Equal Credit Opportunity Act changes, then it’s time to re-evaluate whether or not the process still works.
In other words, this remains a viable option for improving your credit scores, provided you’re not engaged in abusive or illegal practices such as authorized user abuse or CPNs (or even ITINs for that matter).
The legality of piggybacking credit – with a disclaimer.
First, we are not rendering legal advice. We are merely writing as laypersons and pointing you in the direction of what we find relevant on the matter. The document discussed above explains the legality of piggybacking very concisely. Here’s an example:
“This is possible because creditors generally have followed a practice of furnishing to credit bureaus information about all authorized users, whether or not the authorized user is a spouse, without indicating which authorized users are spouses and which are not. This practice does not violate Reg. B.”
Indeed, after someone has done their research on the matter, they set out on a new search trying to find a reliable tradeline company, because they want to increase their credit score by piggybacking.
Updated: August 3, 2021