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Piggybacking On A Better Credit Profile To Build Credit

by on September 12, 2011

A piggyback ride might help create a good credit history.  This isn’t some kind of schoolyard game.  This kind of piggybacking can help students build a better credit profile for their futures.  This method has both its perks and it drawbacks.

When a child becomes an authorized user on his parents’ credit cards, it’s called piggybacking.  He is essentially getting the benefit of their (hopefully) good credit and longer history.  It can give him a jump-start on a good credit score.  It can also give him a better footing for loans as he gets older.

However, the student is not responsible for payment – at least in the eyes of the issuer.  That is still up to the parents.  If the child runs up the card, the card holder is still on the hook for payment and can suffer the ramifications of an overloaded card.  Also, not all cards report every authorized user.  The parents could end up paying the bill without even being able to pass on the benefits to their child.  Think of all the angles before trying this method.

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