hello i would like to know if the 3 big credit company's are disallowing the piggyback system soon?

Answer 1

The credit reporting agencies do not care if a person is an authorized user or not. (so far)

Fair Isaac is the one that will soon quit allowing authorized users to benefit by being an AU to boost their FICO scores.

Answer 2

It's not that they are disallowing it. It's that in September the way that credit scores are calculated is going to change and authorized users will no longer get credit for those accounts.

It is going to be retroactive, so when the credit bureaus update in October anyone who is a authorized user will lose the points that they had gained before.

This is all because of a couple of companies that were selling trade lines to people so they could raise their credit scores. This resulted in a lot of people getting mortgages at rates that they really did not qualify for this resulted in thousands of foreclosures all over the Country when these people did not make their payments.

The mortgage industry lobbied the FTC to change the way credit scores are calculated to put a stop to this practice.

Answer 3

Yes, Fair Isaac Corp. (the company responsible for your credit score) recently announced they will no longer take into account any activity as an 'authorized user'. Basically, they're closing the loophole which allowed for piggybacking. You can find more on this topic here:

http://www.asapcreditcard.com/blog/creditnews/no-authorized-user-piggybacking

The changes don't take effect until September. So you'll only have a few more months to take advantage of piggybacking...

Hope this helps. GOOD LUCK!

Answer 4

They may not disallow it because you can add an authorized user to your account. However, that person will no longer benefit from your good credit. that will be coming very soon. Further, they may start disallowing users on your account that are not related. thats also a possibility.