We’re about to explain the fastest way to build a high credit score – a proven credit hack to transform bad to excellent credit. Anyone can use this proven credit hack.
But before we dive in, consider the following:
A tandem bicycle looks like two bikes connected. You and your child can ride the bike together when using a tandem bike.
You sit in the front and your child in the back, but you both can help pedal the bike and ride together at the same speed. As a result, you can pull your child along at a much faster speed than if he were to ride a bike independently.
However, you control steering the bike and ultimately remain in control of navigating it.
The Piggyback Credit Hack
Likewise, the piggyback credit trick allows a parent to add their child to a credit card, and within about ninety days, the child establishes equal credit history for that card.
You boost their credit score fast.
The parent remains in full control of the card, using and paying it every month. But meanwhile, your child gets rewarded for your positive payment history.
The best present a parent can give their children this holiday season is good credit. And parents with a high credit score can do just that, give their kids good credit simply by adding them to their best credit card as a joint account holder.
It’s that easy, but there are rules to follow for this hack to work.
Rules to Follow:
This proven strategy, piggybacking off someone’s credit, has some parameters and rules that must be abided by for it to work.
Let’s take a closer look at how this strategy can work.
The Piggyback Trick Uses the Following Factors to Improve Credit Scores:
– length of credit history; the longer, the more significant impact it has
– positive credit usage and on-time payment history
– a low debt to credit utilization ratio
So, what’s the fastest way to get a long credit history, with lots of positive payment history and a high credit limit?
Get added to a parent’s credit card; one that –
- is at least several years old
- gets used and paid on time every month
- has a high credit limit and low debt
Do not get added to a credit card that is maxed out and has had late payments in the past because that card won’t help your credit score.
The higher the credit limit, the better.
The lower the debt, the better.
The older the card, the better.
The card should be at least several years old because that length of credit history will transfer.
Why does it matter how old the credit card is?
The older the card, the more weight it carries. A ten-year-old credit card will influence a person’s credit score more than a five-year-old card. According to FICO’s credit score algorithm, “length of credit history” accounts for 15% of a person’s FICO Score.
Let’s suppose a mom adds her son, Billy, to her eight-year-old Chase credit card. The card has a credit limit of $25,000 with a balance of $5,000. She’s never been late on the card.
After adding Billy to this credit card, the card and its attached credit history appear on Billy’s credit report within ninety days.
In less than six months;
- Billy goes from a 550 credit score to a 700 credit score.
- Billy’s credit report illustrates his average length of credit history is eight years.
- Billy has eight years of perfect payment history and no late payments.
There is no faster way to become credit-worthy. This credit trick is, hands down, the quickest way to establish good credit and works every time!
Steps to implement the Piggyback Credit Trick:
First, find someone, like a family member, with a high credit score and low debt. Then, check if that person has a credit card or multiple cards.
Second, verify that (1) they use their credit cards monthly, (2) they pay the balance in full every month or maintain balances of under 30% of their credit limits on average, and (3) they have a credit score of 725 or higher and have no late payments on their credit report.
If you have maxed out credit card bills and can’t afford to pay more than the minimum monthly payments, you need to also work on paying off your credit card balances.
Programs are available from New York to Texas, to California, and everywhere in between. These programs include debt validation, an option that can result in a debt getting invalidated and removed from credit reports entirely. You may want to consider credit card relief programs, which you can learn about by visiting this page next.
Get added to the credit card as Joint Account Holder:
Third, check if they would be willing to add you to one of their credit cards as a joint account holder.
Note: If you get added as an authorized user, this credit trick may not work as effectively.
Authorized users are just that, only authorized users. However, some credit card companies will report positive payment history for an authorized user.
Concepcion Gutierrez, a debt expert from Golden Financial Services, stated, “many credit card companies will also report positive payment history on the authorized user’s credit report.”
To play it safe, check with the credit card company to confirm whether or not positive payment history will be equally reported for an authorized user.
Will you be equally liable for paying the debt if it becomes past due?
Joint account holders can be taken off the card only if the cardholder is current on monthly payments, but if the debt is late, joint account holders are equally liable for paying it.
A joint account holder gets the benefits and liabilities attached to a credit card.
Pitfalls of the Piggyback Credit Hack:
Potential pitfalls include if the person adding you to their card decides to rack up high debt and not pay it off.
You’ll be equally responsible for paying the debt!
And vice versa, the person that adds you to their card must trust you. Legally, you could get a copy of the card and rack up debt, ruining their credit!
Will the person’s credit score, who’s adding someone with bad credit to their card, get negatively affected?
Their credit will not be negatively affected in any way whatsoever by adding you to their card. That is a fact.
It will show that they have a credit card with a joint account holder on their credit report, which does not negatively affect their credit score.
As long as that credit card continues to get paid on time and the balance is maintained low, both your credit scores will rise over time. Children will greatly appreciate this gift from their parents forever, as it’s one of the best presents a parent can give their child, good credit.
This piggyback credit trick can even help a person with bad credit, with late marks and collection accounts on their credit report.
Establishing new credit can be difficult for people with bad credit because no lender wants to approve them for new credit. But the piggyback trick guarantees anyone credit, as long as the credit card holder is willing to take the risk and add that person to their card.