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I want to give you this technique. There are two names for it, either the authorized user technique,:
- AU technique or
- Piggybacking credit
Piggy banking is another term that’s used and you can do some research for yourself on this online I would just go online and search for piggybacking for credit and see what you come up with. Basically this is where you can have yourself added to somebody else’s credit profile, meaning their actual credit card accounts as an authorized user.
And within 30 to 45 days which is the typical reporting cycle for most creditors to the credit reporting agencies, you will immediately adopt the entire history of that account. So let’s hypothesize an example if I needed great credit because I wanted to buy a property and get a better mortgage or I wanted to apply for my own credit cards or I wanted to get an auto loan or I wanted to go out and get access to some of these other debt weapons. But I was lacking with my scores and my profile, I could approach a close friend or family member who has established themselves with at least one credit card company provided that they would be willing to add me as an authorized user on it usually requires a brief, five-minute call to the creditor, you simply conference and make the request.
Now, a couple of bullet points that you’re going to want to make sure you understand first and foremost the most common question I get from this is usually a concern from the primary account holder, meaning: What if my credit is negatively impacted as a result of adding this person who has negative credit to my current credit card, rest assured that will not happen any of their negative credit information will not show up on your credit report.
But your positive credit will show up on their credit report for that account that you add them to so negatively impacted furthermore, they can be removed at any time. From your account, versus a cosigner, which cannot be removed, until the account is closed, and paid for cosigning is never recommended.
I don’t care what the relationship is, you could be a parent, you could be a child, you could be a spouse, you could be a lover, you could be a best friend, I think co-signing is a big mistake. All of our credit is treated independently, your credit is individualized to you, minus to me, and it’s incredibly valuable so if I were to cosign I’m taking a huge risk by doing that, and it’s not a risk I’m willing to take, I would recommend, do not take that risk either.
But with authorized users, you can get a similar impact by helping somebody or by being helped by somebody without all the downsides and the risk involved. All right, here are the bullet points that you have to understand the best possible accounts to be added to or to add someone else to number one have to be accounts that actually report. The easiest way to know is if the creditor does not require the authorized user to provide a social security number.
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