One of the best ways out there for an adult consumer to boost his or her credit is through
piggybacking. Lack of access to credit can be devastating for many individuals, as they end up
being barred from certain financial steps in life, such as applying for home or auto loans, getting
access to credit cards, or applying for places to live.
However, through credit piggybacking, many consumers can start building credit and go from
having no or low credit score to having a score that makes them feel successful.
When you don’t have any credit history to show, it is very difficult to get approved for a primary
account. A lender can’t assume that you can be trusted if you don’t have any history of building
trust, which is sort of the catch-22 of credit. However, it is possible to build a credit history
without ever having to open up a primary account.
Many consumers do so through something called “credit piggybacking.”
Credit piggybacking is the process of becoming an associate on somebody else’s credit report.
The idea here is that a consumer can build and establish credit.
There are three main ways in which an individual can piggyback on someone else’s credit:
If you can’t get credit by yourself, you might consider finding someone with good credit to
become a guarantor or cosigner. This method helps increase the chance that you can get
approved for credit.
Of course, finding someone to take the role of a guarantor or cosigner on is a lot more difficult
than it might seem. Not only do you need to find a person that has decent credit, but they also
have to be willing to pay off your debt if you can’t afford it.
Joint accounts are shared between multiple people. The two parties on a joint account get
access and debt responsibility.
Opening a joint account with another person who has a positive credit history can help get you
approved. Make sure that you only ever open an account with a person that you trust, as you
both have access to the account.
When you become an authorized user on some else’s account, you get the entire history of the
account on your credit record. The beauty of having access to an authorized user tradeline is
that you can get years of credit age and payment history on your report in a matter of weeks,
which is something many people take years to build up.
Here at Personal Tradelines, we’re all about making sure that our customers have a good
understanding of tradelines so that they can get their credit where they want it to be.
We understand that working towards good credit can seem like an uphill battle, which is why it is
so important to have a company by your side to provide you with all of the necessary tools and
knowledge to get you through the process with ease.
If you are ready to take your first step on your journey to better credit, make sure to get in
contact with us!