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Piggybacking is a credit building tactic that allow a person who is trying to build credit to “piggyback” onto the credit history of someone who already has excellent credit. This is done via the use of authorized user accounts. the person with the excellent credit history would add the person who is trying to build credit onto their credit card as an authorized user. This action alone causes the entire history of the account to be reported as a tradeline on the credit report of the person trying to build the credit. This added excellent credit history allows the person wanting to build credit to realize score improvements of 50 points or more depending on the strength of the original credit line used.

Key factors to understand are:

• Piggybacking is utilizing the credit of others to develop higher credit scores.
• Effectiveness will be based on individual credit account you have been added to which is the age, limit, balance, and payment history of the account you are being added to.
• Length of time which the information reports to the bureaus for authorized users can be short, many times you are removed within 1-2 month which results in the tradeline being      removed from your credit report as well.
• Quickly closing on any loans you are seeking once the score increase hits is considered a best practice. basically you use it or lose it.

Authorized user accounts work because credit bureaus report the accounts holders entire card history to the credit report of the card holder and to the credit report of the authorized user even if the authorized user has only been on the account for a few days. The reason accounts are being reported is because of Fair Isaac Company, better known as FICO has interpreted a part of the law about equal credit opportunity act to mean that the person who is the authorized user on an account must be given credit for the account history.

These accounts typically rented by brokers offer monthly income payments to individuals who have an outstanding credit history. The length of the credit card file history, as well as the top limit vs. balances, maintained over time are factors which create the strength of each account. Some specific companies are recognized as better reporting sources for authorized user accounts as opposed to others. The individual card with the excellent credit history is then purchased/rented by consumers who want to receive the benefit of the tradeline reporting the excellent credit on their credit files. They do this to help them establish better loan products at more attractive rates and flexible terms. Key factors to understand are:

• It is a method of purchasing highly rated credit of others to improve an individual’s credit.
• Information reported may be restricted by time limits by card companies.
• Improvement in scores are proportional to tradeline account and dozens of other factors.
• There is a limit to how many authorized users are allowed to each card issuing company.

The primary user is the person who applies directly to the credit card companies. In other words the owner of the credit. The credit reporting for primary users will always be considered as a stronger source to measure individuals by credit bureau standards. Authorized users are recognized by the information which is reported to the credit bureaus by card companies but may be subject to restrictions as to how the reporting is done and length of time and history reported.

The primary user reporting file will contain all history from the institutions reporting payment history, and it will more heavily be weighted as a source for scoring and determining credit decisions for those applying directly for credit.

Key factors to understand are:

• Primary users are considered to be the owners of credit, and their tradelines carry more weight.
• Authorized user tradeline reporting may have limitations with respect to time and card issuing company.
• Each tradeline may be recognized differently by institutions with which credit sought.
• Primary cardholders are limited to the total number of authorized users available per card.

An aged or seasoned tradeline is one which has been paid over several years and illustrates an excellent pattern of payment habits and small charged amounts vs. limits. A credit card company which reports several years of on time payments with no poor utilization of credit concerning high balances will serve as a much more significant source of higher credit ratings at the bureaus for both primary and authorized users.

Aged or seasoned tradelines are associated with credit card institutions which are considered higher and best sources for achieving the maximum results for credit repair needs. Some exceptionally rated older tradelines may have significantly better results for credit repair than others.

Key factors to understand are:

• Aged tradelines represent a proven and best source of long reported credit usage.
• Aged tradelines are usually accepted as the best means for credit repair utilization.
• Aged tradelines are the most highly sought after segment of the authorized tradeline industry.

A seasoned tradeline is one which has been paid over a minimum of 12 months with a perfect payment record. Most experts prefer several years to illustrate an excellent pattern of payment habits and small charged amounts vs. limits.

A credit card company which reports several years of on time payments with no poor utilization of credit concerning high balances will serve as a much more significant source of higher credit ratings at the bureaus for both primary and authorized users.

Seasoned tradelines are associated with credit card institutions which are considered higher and best sources for achieving the maximum results for credit repair needs. Some exceptionally rated older tradelines may have significantly better results for credit repair than others.

Key factors to understand are:

• Seasoned tradelines represent a proven and best source of long reported credit usage.
• Seasoned tradelines are usually accepted as the best means for credit repair utilization.
• Seasoned tradelines are the most highly sought after segment of the authorized tradeline industry.

Pricing for authorized tradelines depends on some variables. The strength of the payment record for length of time the card company has reported the account is one factor in determining the overall value. Individual institutions have more user-friendly reporting methods which establish a longer time where the information reported to the bureau.

Card companies which have the most consistent positive reporting history for authorized tradelines are a quantity which many can rely on for more consistent success with rating boosts. Larger credit lines with lower percentages of unused credit are usually directly associated with higher values.

Those top credit card companies combined with a reporting history dating back several years and credit limit increases to very significant limits offer the maximum potential for fast and efficient credit score boosts on an authorized user tradeline.

Key factors to understand are:

• High credit limits with a very low utilization of credit percentage used vs. available.
• Length of time associated with reporting from a particular institution.
• User-friendly track record of the card company for consistent reporting to bureaus.
• Strength in the brand name of the issuing credit card company.
• Strength in the brand name of the issuing credit card company.

Authorized user tradelines are comparable to appliances or any other item which has available features, options, and reputability associated with brand names. Individual bank cards are noted to be consistent in their reporting to all of the bureaus, and those will be a factor in determining the cost. A length of time which spans several years of history being reported is associated with more boost for the credit-seeking purchaser.

Branding is another factor which comes into play when assessing potential value for authorized user tradelines. As with any industry, certain brand names are more commonly recognized as more reputable compared to others. The ultimate test of any credit report is how it fares when viewed by the potential lender of the credit file being built.

Individual institutions recognize and validate practices and procedures of competitors and use them to evaluate the reported history.  If a credit line is $2,000 vs. $50,000, there is a significant difference in potential value. Two years of reported tradelines vs. ten-year-old ones are proportional in possible impact.

Key Factor to understand are:

• Prices are proportional to assessed value based upon a significant number of variables.
• Prices of tradelines from consistently reporting card companies will be more expensive.
• Prices from the most desirable brands of institutions will carry more costs.

Since authorized user tradelines are designed to provide fast and efficient boosts to credit seekers looking to save potentially thousands of dollars in interest on homes or cars the choice is proportional to the desired credit increase. If someone needs only 20-30 points to qualify for a loan they might be choosing differently than those needing 50 or more points. Many potential home buyers are willing to invest more to get the maximum lift possible to qualify for the very best interest rates and terms which they lock in for many years.

Most experts feel the highest and best theory of operation is a model for authorized tradeline selection. Potential buyers should purchase the highest level of potential improvement within their budget and expect the best level of results. When boosts come in over 100 points compared to 20 the rates for new credit are significantly different.

Key factors to understand are:

• Choosing more up front cost will often be absorbed by back-end results.
• Every consumer has different credit needs and no client is the same.
• Often the ratio of money spent vs. interest saved from credit rising is only a small percent.
• Each purchaser has a budget which is unique to their individual circumstances.

Most credit cards allow you to add someone as an authorized user and most Visa/MC accounts will actually report to the credit bureaus (other revolving accounts like store credit cards do not report), Of these, only a few of them actually report to the credit bureaus on a consistent basis. For example many of the cards that report take an average of 3-6 months before they begin reporting, may only report to one credit bureau, or switch bureaus they are reporting to periodically.

The reasons most lenders don’t report on a regular consistent basis is to help avoid their card being used to artificially increase someone’s credit report.

Any business is nothing more than a group of people. Getting to know the company and people and following up on credentials, awards, satisfied customers and ratings which represent benchmarks within their industry are methods which aid in the decision-making process. Experience and the demonstration of a successful track record are great indicators of the potential legitimacy of a company.

Few companies can offer results based guarantees when it comes to credit repair, but those who are willing to charge their costs and fees or provide solid warranties would certainly minimize consumer risk.

Key factors to understand are:

• History and proven success record are indicators of legitimate tradeline brokers.
• Ratings, Accreditations, and awards are excellent measures of reliability.
• Finding companies willing to stand behind their products with guarantees are a premium.

• A Cardholder must have at least one credit card with a perfect payment history (No late payments).
• The credit card must be at least a year old.
• The Cardholder must always maintain a balance of less than 12% on their credit cards(s).
• The Cardholder must be able to add someone to their card as an authorized user within 48 hours of email notification that they have a new client.

• Citi Bank
• Bank of America
• Capital One
• Chase
• Barclays
• Federal Credit Unions
• Wells Fargo

The fact that an authorized user is added to an account does not appear on the primary card holder’s tradeline with the bureaus. It makes no difference to the bank whether authorized users are added or not.

The institutions will just report the credit payment history of the primary on their credit file and decide based on their specific guidelines whether or not to report authorized user tradelines. Since many businesses take advantage of the authorized user option limits are typically high as to the number of them which may be added.

Key factors to understand are:

• The primary card holder credit file does not reflect the existence of authorized users.
• Authorized user tradelines are reported separately to the Bureaus based on policy.
• Many businesses use the authorized user to add employees to their accounts.
• To the credit issuing bank an authorized user is only viewed as an addition to reporting.

Adding an authorized user is legal and is explained in most paperwork which comes with primary card holders. If the person added to an authorized user account is acutely aware that they are being added to an account there are no laws or rules against the process. The process itself if an option available to virtually all primary credit card holders and has often been used for children relatives and friends.

In addition to families utilizing the authorized user feature, many business owners use the same feature to add employees as authorized users on millions of accounts throughout the country.

The only guidelines and restrictions which apply to adding authorized users come in the form of age and identification requirements by the card issuers.

Key factors to understand are:

• There are no laws which prohibit the purchase of authorized user tradelines.
• Credit repair attempts are not potential criminal activities.
• It is a common practice which is recognized and accepted in the credit industry.