Piggybacking (credit score)
Barron's Real Estate Dictionary:
Top
Piggybacking (credit score)
Financial scheme in which someone with a poor credit history is added as an authorized user of a credit account held by someone with an excellent credit rating .
The result is that the good credit history is attributed to the person added to the account, thereby raising that person’s credit rating. The person with the credit account is paid a fee. The practice is of dubious legality and clearly defrauds lenders using the credit score as an underwriting criterion.
Example: A company offers to raise your credit score for a fee. By piggybacking you onto the credit card account of a person who has impeccable credit, your credit score can be substantially enhanced.
You may be able to jump from subprime status to a B or even A credit rating. You will save a significant amount of money because of the lower interest rate on your loan.
The result is that the good credit history is attributed to the person added to the account, thereby raising that person’s credit rating. The person with the credit account is paid a fee. The practice is of dubious legality and clearly defrauds lenders using the credit score as an underwriting criterion.
Example: A company offers to raise your credit score for a fee. By piggybacking you onto the credit card account of a person who has impeccable credit, your credit score can be substantially enhanced.
You may be able to jump from subprime status to a B or even A credit rating. You will save a significant amount of money because of the lower interest rate on your loan.
| Piggyback Loan, Physical Life | |
| Pipeline, Pitch |
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
Read more