Has anyone heard about this- piggybacking your way to better credit?
People who do not qualify for a loan to buy a house due to their low credit score use a program called "piggybacking". New York-based Tradeline Masters is the company that run "piggybacking".
Piggybacking helps those who do not qualify to buy a house by pairing them with someone with great credit (the credit holder). So this is how it works:
The card holder allows the poor-credit consumer to sign on to his or her credit card as an authorized user. In return, the card holder receives hundreds of dollars in compensation and is also assured that the poor-credit consumer will not actually use the card. The poor-credit consumer, meanwhile, sees his credit score increase by 10, 20, 30 points or more, potentially allowing him to qualify for more affordable loans.
http://abcnews.go.com/Business/Economy/story?id=5998959&page=1
The article states that in some cases, the card holder help increase the score as much as 300 points. And the card holder can make up to $5000/month just by letting multiple customer use the account. I can see how this is a great deal for both side but I feel that they are cheating the system. I'm suprise that this is allowed at all. I can see the home owner's despiration to be a part of the piggyback program, but it's still wrong.
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