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goldwirefinancial · Joined: 08 Feb 2010 Posts: 1 1.53 Dollars($)

is it legal to add seasoned perfect accounts to my credit to increase my scores. i want to buy a house in 30 to 40 days. can this work?

gmakerley · Posted: Mon Feb 08, 2010 9:53 pm Post subject:

how do you propose to add these "seasoned perfect accounts?" my opinion immediately upon reading your post is this: If you have to ask if it's legal, then it probably isn't.

joshuaheckathorn · Posted: Tue Feb 09, 2010 2:38 am Post subject:

Do you have a close relative or friend that's offered to add you as an authorized user to one of his/her credit card accounts? If so, that's perfectly legal and parents have been doing it for years to help their children establish credit histories.

If you're talking about purchasing an aged tradeline, well...it's still legal, but ethically questionable. And there are a lot of "shady" businesses in the market of selling aged tradelines, so be very careful if you take this route. You don't want to get burned.

Guest

Hi Goldwire,

Lifting others credit score to increase your score is not advisable at all. It is not legal. This is bad practice that can land you into problems. If any credit repair company has advised you to go for the piggybacking, you should never opt for that company.

gmakerley · Posted: Tue Feb 09, 2010 8:45 am Post subject:

thank you for a touch of sanity, lydia.

joshuaheckathorn · Posted: Tue Feb 09, 2010 10:55 am Post subject:

Lydia - I agree with you that it's not advisable, but you make an incorrect statement when you say it's not legal.

There's nothing illegal about me adding my wife or child as an authorized user on one of my oldest credit card accounts with a perfect payment history. As soon as I do, that card and it's associated credit utilization will be reported on their credit reports and help improve their credit histories.

Now, if we want to talk solely about companies that sell aged tradelines to strangers to take advantage of the loophole in the system, then that's a different story. I wouldn't advise the OP to take that route either.

gmakerley · Posted: Tue Feb 09, 2010 11:01 am Post subject:

joshua, i think you misunderstood what lydia was saying...i think she was addressing the topic of the purchase of a tradeline, not an authorized user situation.

joshuaheckathorn · Posted: Tue Feb 09, 2010 11:21 am Post subject:

Hi George - No, I didn't misunderstand her. I guess my point is that both are legal, but purchasing tradelines is considered a very controversial and unfair practice that no one has really figured out how to deal with quite yet. Until the ECOA is actually changed to allow the removal of authorized users in the FICO model, it will likely always be a hot topic.

gmakerley · Posted: Tue Feb 09, 2010 11:33 am Post subject:

okay...if purchasing someone else's credit line(s) isn't illegal, it ought to be.

joshuaheckathorn · Posted: Tue Feb 09, 2010 5:24 pm Post subject:

I know. It just doesn't seem like it should be so easy to dupe the system. Especially since it takes such time and dedication to build a strong credit history the normal way.

Anyway, Fair Isaac has claimed that its new FICIO score, FICO 08, includes a technology that can help lenders protect against piggybacking by reducing the potential score impact associated with the abuse of authorized-user accounts. No one's really clear on how that could possibly be done under the current law, but I'm sure the idea has attracted the attention of lenders to the new model.

aboutyourmortgageusa · Joined: 24 Dec 2009 Posts: 33 10.07 Dollars($)

hello.. i agree with Lydia what she said ...in order to improve your credit scores, it's important to know where you stand currently..... if your family members.. friends are have no issue for that....you are adding in to your account then i think its good they wants to help you... but as per we consider the rule "adding other's funds to own A/C"... its illegal.. Sad

Guest

Hi,

There has always been debate on piggybacking. Industry experts say that its illegal, but the piggybacking sites disagree. However its better to avoid lifting others score.

gmakerley · Posted: Wed Feb 10, 2010 7:11 am Post subject:

aboutyour...you continue to infuse confusion into the midst. please try to come up with cogent remarks in the future.

abby...it's downright ridiculous for people to acquire favorable credit ratings by climbing on the backs of those whose payment habits are excellent. the "authorized user" deal has no basis in fact on those who use the accounts merely as a credit builder. that being said, tons of us have used it (yes, me too...for my wife, who had no credit at one time), and it's helped people begin to create a favorable profile with the bureaus.

i think the biggest fear that the credit industry has in this regard is in advancing credit to those whose histories aren't really their own, and then to find defaults piling up as a result.

speeddater · Joined: 10 Jan 2011 Posts: 8 3.79 Dollars($)

As I've experienced in my personal life, and expressed on my personal blog about my fionancial life, you have to treat your credit history much like a personal resume or reference list. Think about it this way, if you were applying to a grad school (let's say business) and had two letters of reference (one from a friend you just met a year ago and another from someone who has done business with you for almost twenty years). Which one would impress admissions people the most regarding your business abilities? The latter of course. Aged history is relevant. Quick fixes just don't cut it. Find tradelines and credit that you can get into that you can use to your advantage over the long-term. I also make sure that I utilize my lines effectively and have them push up those limits when possible to increase my utilization factor. There are some places that you can go online and offline to get some generous credit, as long as you are careful in how you manage it. I've got some of my own on my blog listed out if you want to check out who I've dealt with. All the best!

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