If you’ve been around the credit block for a while, you’ve surely heard the term “piggybacking” before. You may have heard it touted as a way for family members and friends to help each other out, which makes piggybacking a practice that many finance-savvy citizens take on. If you’ve got questions about piggybacking credit, you’ve come to the right place—our most frequently asked piggybacking questions will help you decide if it’s right for you.
What does Piggybacking Credit Mean?
“Piggybacking credit” is a popular term that refers to when someone is added as an authorized user to a seasoned tradeline. It’s often used as a way to add more seasoned accounts to those who are just starting their credit-building journey. The word “piggybacking” evokes an image of one person holding up another, but this visual isn’t totally accurate. When it comes to piggybacking credit, the primary account holder will not feel burdened by giving the authorized user a boost, like one might with a real-life piggyback on the playground.
Is Piggybacking Credit Different than Authorized User Tradelines?
No—the term “piggybacking credit” is essentially a colloquial way of referring to an authorized user tradeline. When you are added to a seasoned tradeline as an authorized user, you are piggybacking credit—whether you know it or not.
Piggybacking has been popular since it started with the Equal Credit Opportunity Act of 1974. Whether you refer to this process as piggybacking credit or as authorized user tradelines, it remains an under-utilized tool for many Americans.
How Does Piggybacking Credit Work?
Piggybacking credit occurs when an authorized user is added to a seasoned tradeline. Friends and family will often allow each other to piggyback, but in many cases it’s difficult to find someone to piggyback credit with. That’s when a third party can come in to help connect the dots between someone looking to purchase a tradeline and another looking to provide one. Tradeline Supply Company, LLC makes it easy for users to find the tradeline that’s right for them, whether they’re looking to piggyback or provide help for someone else.
Is Piggybacking Credit Legal?
It is important to get your credit tradelines from a reputable source. Some illicit tradeline providers use Credit Profile Numbers (CPNs) to mislead creditors as well as those looking to purchase tradelines. That’s why it’s critical to only work with tradeline companies that forbid the use of CPNs—learn more about CPNsand why Tradeline Supply Company, LLC doesn’t accept them.
Can It Hurt My Credit?
If you’re added as an authorized user to another credit account, then your credit can be affected by this account. That means that if the account you are added to skips out on payments, it can potentially affect your credit. This is why it’s crucial to use only reputable tradeline accounts. These accounts are usually “seasoned” because they have been in good standing for at least two years, often more. However, there are some situations where adding authorized users to “unseasoned tradelines” can make sense, which is why we supply both types. To find out more about seasoned tradeline accounts, visit our Seasoned Tradelines FAQ.
How Long will using Piggybacking Credit Take Before I see It on my Report?
Piggybacking credit can show up on your report in as little as 11 days, depending on several factors relating to the particular tradeline. Each piggybacking tradeline has its own reporting cycle, and Tradeline Supply Company provides a helpful “purchase-by date” feature that lets you determine which reporting cycle your piggyback will show up on. If you miss the purchase-by date, it will simply show up on the next cycle.
If you have purchased a seasoned tradeline that you believe may be non-posting after waiting until after the entire reporting period, reach out to us for support.