I just read a great article about changes coming to FICO scores this September. Pat Earnhard reports that the practice of using someone else’s credit score to boost one’s own will be curbed by the Fair Isaac Company, the progenitor of the omniscient FICO score. Most credit grantors use the FICO score to determine whether your loan will be granted or not.
Piggy backing was originally intended to be used by parents helping their children establish credit. The parent would add the adult children to his or her credit accounts and the child would get the benefit of the parents credit score. In recent years, Piggy Backing has been abused. Credit repair companies would pay individuals with excellent credit a sum of money to add their clients to the person’s account. The piggy backing exception has resulted in a great deal of piggy back abuse. Naturally, the individual with the artificially inflated credit score obtains credit that he cannot handle. When a debt goes bad, we all pay. The ride will soon be over.