Piggybacking
Posted in Credit Cards
define: Piggybacking
The practice of signing as an authorized user on someone else’s credit card for the purpose of bettering one’s credit score. Prior to 2007, this practice was adopted by some parents in an effort to help their older children obtain better credit scores. Companies latched on to this loophole and set up matching services for people with good credit to rent out their accounts to people with bad credit scores. Those with bad scores would often see an immediate credit score increase, and the account renters enjoyed a little extra income. FICO saw the practice as unethical and deceptive to lenders and in September 2007 changed credit card terms so that credit scores are not affected simply by being an authorized user.
This definition is filed under Credit Cards.
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