There are several methods to boost your credit report and piggybacking is just one of them. People may have a low credit score for several reasons. You may have made some late payments or upgraded your lifestyle by taking multiple credit lines. It is also possible that you are a new graduate looking for a few ways to grow a limited credit line history.
There is a range of good reasons why you may need to boost your credit score. One of them is getting the best mortgage rate possible when buying a house. However, understanding how piggybacking works before you dive into it is crucial.
Piggybacking is the process where an individual assumes authorization on the credit card of another person to boost their credit report. This is not the same thing as holding a joint account. Joint account holders are legally responsible for every charge on the credit card; however, the person piggybacking is not.
In piggybacking, the full account history of the authorized user reflects on his credit report. Multiple pieces of information such as the account age, utilization rate, and payment history are made available to the authorized user. Positive information will help in boosting the credit score in his report. However, the authorized user may lose points if the information provided is negative.
Piggybacking tradelines can be likened to the childhood game that someone carries you on his back. However, you are carried on the account of their credit card instead of their back.
The way this works is that the cardholder adds someone else as an authorized user of the account on their credit card. The authorized user can make purchases on the account using the card. In this case, he is the secondary holder on the card. Learn more about this on https://www.boostcredit101.com/.
The full history of the account on the credit card appears on the credit report of the authorized user. This will then be integrated into their own credit score. Loans or history on the other cards of the primary cardholder will not be shared.
The good payment history of the primary cardholder will help in boosting your credit score.
There are several factors that are peculiar to some tradelines. This means the time it takes for piggybacking credit to reflect on your credit report varies. However, it typically takes 11 days if there are no unique factors that may prolong the process.
The reporting cycle of every piggybacking tradeline is unique to itself. Hence, the Trading Supply Company and LLC create a “purchase by date”. This ensures that purchases of tradelines are inevitably made at a specified time. As a result, you are guaranteed that posting will be done in the next reporting cycle[JP1]. Hence, the piggybacking credit will reflect on your credit report afterward.
The answer to this is quite simple. The account history of the credit card owner will always be sent to the authorized user as long as they remain authorized. This means the benefits that the authorized user gets will remain on the account for as long as they remain authorized.