Perhaps there is no faster way to re-establish the lost confidence of your lender in you than by credit piggybacking. This used to be the best way to establish a good credit history for you in a jiffy. However, today this practice does not attract any good credit score for the borrower. Credit piggybacking is only a good way today to get you new loans at subsidized interest rates and make you capable of making big purchases like your own house or car.

Credit piggybacking is a fully legal practice. It is an act of requesting and receiving permission from another person to act as a co-borrower on a credit card or similar kind of loan instrument. In other words, it enables a person with poor credit score to be able to use the privileges available to another person with a good credit score. This practice earlier used to be largely prevalent between family members and friends as it was also a way to improve the credit score of the borrower.

In more recent times, the face of credit piggybacking has changed. Today there are many brokers or middlemen who have taken up this practice as a way to make money. They bring together the poor credit scorer with the good credit scorer in exchange for a fee. Similarly, the good credit scorer allows the poor-credit scorer to become an authorized user of the same loan instrument in exchange for a fixed amount of fees. Earlier this practice became hugely popular since the borrower gained huge in this process since he not only got the privileges attached with a good credit score but also improved his own FICO score in the process. However the speculative nature of these practices has forced FICO to neglect credit piggybacking in determining the credit score of a person. Therefore, though credit backing continues being a legal process, it will not bring in any increase in your credit score.