There are many who have struggled with a poor credit score at some point. If you are one of them, you know how frustrating it can be to have that score stand in the way of a new car or home. Along with clearing up any errors or outdated information on your credit report, consumers have another option that can help raise their score. It’s called credit piggybacking, and it can help give you better standing when it comes to landing a loan, mortgage or financing agreement.
Types of Piggyback Credit
The concept of credit piggybacking is much the same as the game from which it takes its name. Like a parent who carries a child “piggyback,” a person with a good credit score can carry another on a personal credit account as an authorized user. This is essentially a loan of their excellent account history to the one being piggybacked. It doesn’t mean the score itself is loaned, only the history, or record of payment, on that account.
There are also other forms of piggybacking credit, in which someone cosigns for a debt or opens a joint account with another person. These types of piggybacking typically involve family members, such as a parent cosigning a loan for a child, or spouses who open a joint credit account. In general, however, piggybacking credit is used most often to describe the addition of an authorized user to an account.
Piggybacking By Other Names
You may have heard the term “tradelines” used to describe piggybacking. In fact, there are several terms used, each referring to the same method of piggybacking. Here are some additional terms:
- Piggybacking credit
- Credit tradelines
- Authorized user accounts
- Seasoned tradelines
- Buying tradelines
For those who don’t have family members with good credit who can add them to an account, tradeline companies like Coast Tradelines can help. We connect those seeking an authorized user account with those who are willing to provide them, without compromising the personal identities and information of either party.
How the Process Works
The first step in working with a tradeline company is to define your goals, or why you want to boost your credit score. You may be hoping to qualify for a home loan or auto financing. Or maybe you want to launch a new company and need a business loan. Whatever your goals, it’s essential that you work with someone who understands them because that will help define the type of piggyback credit you need. Next steps include:
- Credit issues: Discuss all of the problems in your credit report to provide a clear baseline from which to start.
- Tradeline suggestions: You should receive suggestions from the company about which tradelines will meet your needs.
- Sign contract: Along with a contract, you’ll receive a notice of your rights and a cancellation form.
- Collect documents: You need to provide proof of address, credit reports and identification, including your license/ID and Social Security card.
- Buy tradelines: This generally includes placing the funds for a tradeline purchase in a trust account. You have three days to cancel the contract.
Your relationship with the tradeline company doesn’t end there, however. You can ask questions or request more information at any point. When the company has finished the process, the tradeline is added to your credit report; you should then see a new credit score as well.
Price Is Not the Only Object
Of course, you want the best price you can get for everything you buy, but don’t base your decision to purchase tradelines on price alone. There are several characteristics to consider in a tradeline, including the age, payment record, credit limit and more. The cheapest tradeline may not have the maturity or limit you need. In that case, the pennies you save are not going to earn you the boost you need in your score.
Finding a Reputable Company
There are several tradeline companies in the marketplace, but like anything you invest your money in, you should choose a partner carefully. Along with having a track record of more than a year or two, look for companies that offer more than just a hard sell. At Coast Tradelines, we want to work with you on a personal basis. We’ll discuss your goals, timeline, and how we can help you achieve them. Contact our knowledgeable representatives today to learn more about how we’ll work to meet your needs.