I have heard of people letting you use them as co-signers. For such things as credit cards and student loans. These people are strangers with good credit to offer people like me that need the help. Does anyone know anything about this? If so, please let me know anything you can.
2007-07-18 08:27:56 · 7 answers · asked by wickedchic_ 1 in Business & Finance ➔ Credit
Most of the answers are half right....they have a general idea but don't have all the facts.
For several years some of the "credit repair" companies have been using a scheme where they will pay someone with excellent credit to allow someone as an authorized user to their card. That way, the good credit from the main user is passed on to the "co-signer".
This practice is not illegal....it's just a wide loophole in the user agreements.
No, congress is not taking any action on this.....if they did it would take forever to pass any laws. But the credit bureaus are going to begin monitoring this practice and not allow alternate users to take advantage of this any longer. Last I read it would happen in a couple of months.
So at this point there is no advantage to doing piggybacking.
2007-07-18 08:58:19 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Many times individuals starting out have a rough time getting credit because nobody wants to give credit to someone who doesn't already have some. Having a co-signer is a good way to get around this because if they have good credit the provide a safety net for the lending institution in case you default on your loan. However, you will have to find someone who trusts you, because they may be held liable for the loan if you default. I wouldn't co-sign a loan for a stranger, it could very well become a catastrophe.
2007-07-18 15:34:38 · answer #2 · answered by Rob 2 · 0⤊ 0⤋
Piggyback credit is usually when a parent puts your name down on a credit card app as someone who also has access to the account. This is supposed to help your credit. I did just hear something about Congress trying to do away with Piggyback credit, so that consumers are responsible for building their own credit.
2007-07-18 15:32:10 · answer #3 · answered by laurabeth_4 2 · 0⤊ 0⤋
They are not co-signing for you. That would mean they are taking responsibility for your payments should you default, and no one will do that for you if they do not know you. Heck, even if I knew you, I’d not do it. Money/friends/family do not mix. The only person I share money with is my husband.
What you are talking about is adding you as an authorized card holder on their accounts. You never receive any account information, nor do you receive a card. Their good payment history of the account reflects on your credit report. This practice is borderline legal and I expect it to become illegal in the near future.
2007-07-18 15:35:14 · answer #4 · answered by Robin C 5 · 1⤊ 0⤋
There are companies out there that do this for a fee, you end up added to someones credit card for a couple of months. Congress is now looking to close that loophole. Best bet would be to see if your parents will do that for you.
2007-07-18 15:34:16 · answer #5 · answered by Pengy 7 · 1⤊ 0⤋
Actually, its a scam. They don't co-sign--they add you on as an authorized user. Which most banks do not report to the credit bureaus, as you're not actually responsible for the debt if the original owner of the card/loan defaults.
2007-07-18 15:30:47 · answer #6 · answered by Ari 3 · 0⤊ 2⤋
authorize user on cc
2007-07-18 15:51:46 · answer #7 · answered by Anonymous · 0⤊ 0⤋