Adding Authorized User to Credit Card: Know Everything with a Simpler Viewpoint

Piggybacking has now been an industry standard practicing for adding authorized user to a credit card with the whole intent of improving one’s credit rate with poor performance. Typically, under the system, an authorized user or a primary card holder who do not know each other are brought together to perform the agreement, which is basically administered and convened by an intermediary company specializing in tradeline deals. Even though the authorized user cannot use the card, however, they enjoy the benefit of the good credit score of the cardholder which shows as if the AU’s credit history, once added to the card. As against the services, the authorized user is supposed to pay a charge to the cardholder through the company intermediate the whole program.

Simplifying the procedure

While there is widespread confusion among people with the terms of ‘Authorized User’ ‘Tradelines’ or ‘Piggybacking’ and how the whole process works, its lawfulness and acceptance to lenders, understand the following points focused on adding authorized user to credit card procedures.

Ø  Tradeline is, in fact, the details of credit-line information that you can find on your credit report. Apart from the personal details, all your credit involvements like a credit card, mortgage, or car loans are termed as a tradeline.

Ø  With a bad credit score or no credit rate, for the purpose of quickly improve your credit status, if you are added being an authorized user to such a credit line or tradeline (mainly used for credit cards since that makes the process feasible and handy) with a high score and steady credit history, that will automatically reflect in the credit statements of both the primary cardholder as well as in the records of the AU.

Ø  Piggybacking is not any new concept and has been commonly used in a family circle while parents designate their adult son or daughter as AU to one of their credit cards enabling them to initiate an early credit life. Equally, millions of couples add to their spouses as Authorized users that help them in better financial planning and management. Becoming a joint cardholder and/or getting someone as a guarantor are also some types of piggybacking however, piggybacking through credit cards are mostly in use.

Ø  With none in your family circle prepared to add you as an AU, (which is a common scenario) the intermediary company specializing in adding authorized user to a credit card can help you in piggybacking and thus reach the destination to meet your financial need with someone’s else’s support.

Ø  Naturally, similar to all other services that you obtain, for becoming an authorized user to some stranger’s account you need to pay a sum of fees which is handled by the go-between company.

Conclusion:

Hopefully, from the above-stated points, you can now understand that tradeline industry is basically performing on the concept of piggybacking credit. Typically, this is the marketplace whereas tradelines are bought and sold. So long, the procedure is not undergone for some fraudulent purpose, it is absolutely legal in the eyes of federal regulation. Even if both parties involved in the procedure are strangers, professional tradeline companies are caring enough to maintain 100% privacy of both the cardholder and the authorized user in the deal.