Deliah
|
CORRECTLY that loophole has gone bye-bye. |
|
littlemissmay
 |
I heard that piggbacking could no longer be used. If they arent the primary it wont work starting this year.
http://www.myfico.com has info on piggybacking and why they excluded accounts like this from the scoring system |
|
Ms.MojoRisin
 |
New rule---- see FICO 08
Fair Isaac (FICO) has caught on to people piggybacking their kids, etc. onto their good credit scores.
See quote and source from the Wall Street Journal below:
"FICO 08 also aims to curtail the growing business of allowing people to polish their credit by "piggybacking" on someone else's good credit history. In recent years, credit-repair Web sites have sprung up that arrange for subprime consumers to boost their scores by becoming authorized users on accounts held by strangers with better credit. When scoring a consumer, FICO 08 won't take into consideration credit-card accounts for which that person is an authorized user. But the move also will hurt legitimate users: People who give a credit card to a child or a spouse as an authorized user to help boost their credit score."
Bottom line----it used to work, but they caught on, and doesn't work that way any more. |
|
Credit Guy
 |
Your son read about an obsolete method. It used to work. The credit bureaus got wind of it, and now it's gone. Adding him will have NO affect on his credit or yours. But it WILL trigger a question about his negative net worth when anyone sees the balance he will seem to owe, when they pull his credit report.
An easier way to build it is creditloader dot com. There your son can borrow funds to hold them in his name, with no co-signer. He can build his credit without hurting his net worth, but it will cost him interest. |
|
bud68
 |
That loophole was closed - it will not improve his credit rating. You would have to open an account with him as corborrower (if he's 18) to affect his credit report. |
|
robert w
|
never ever do it.
visit dave ramsey.com to learn hard lessons coming ur way. |
|
cynthia h
|
I did it for my son, and my husband did it for my daughter...and she has the card for emergencies, but my son felt he would go wild, so I have it. If he never has the card, he can never get in trouble, and he still benefits. (they say that it was supposed to change, and not benefit anymore, but I read that the credit companies are still using it) |
|
Danny
 |
If your son ever does abuse the account, it will affect your rating because you are linked with him to that account. Sometimes the credit is only reported to the principle owner of the account. Call the creditor to see if they report activity on the card on the joint owners credit bureau. |
|
Martin M
|
It will not impact you rating. Your son's credit will get a fast improvement by reporting your cards history. Paying on time unfortunately doesn't have full benefits to your score. The balances should be 70% away from the limits for best results. If your son has any derogatory items or collection accounts that are currently on his report, they will stay on there unless he gets them taken care of. |
|
roginad
|
If he never uses the card, your credit score will stay the same. In regards to his credit do not rely too much on this advice. First of all, credit agencies change recently some of their rules and being secondary user on revolving trade line won't give him too many credits. He needs to have his own good history to improve the score significantly. Good news are that you can help your son to obtain his own credit card sooner by showing his name as a second user. |
|
dngrrngr62
|
if he screws up his credit while still on yours, then yes |
|
Grandpa
|
It will help his as long as you keep the payments up. It won't hurt yours unless he runs up a bill you cannot pay for. |
|
Dan Mac
|
Actually, this is allowed now... FICO revisited this issue because they got too many complaints from legit authorized users.
http://www.fico.com/en/company/news/pages/07-31-2008.aspx |
|
| |
|
Homepage 
Financial
Forum 
Credit 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
