link to article

looks like FICO is changing their credit scoring method to make it harder to get a credit score boost by being added as an authorized user on someone else's credit. first time I've heard about the change...

This is changing because there were actual companies out there offering to let people piggyback on other real people's credit for a FEE! Dont ask me how it was legal to allow for that, but somehow it was accomplished. What a way to screw up a good thing for everyone.

Yes, this was discussed earlier here, Boost your credit score in weeks for a couple thousand $.

And, due to abuse, this trick will no longer work.

IMO Piggybacking was used to commit fraud and shouldn't have been allowed in the first place.

Well, not all uses of this were fraudulent. I had my son added as an authorized user on one of my credit cards when he started college - I didn't use that card, and it gave him a chance to build a decent credit history before he started living on his own. A couple of months ago, I helped him apply for a Chase Freedom card and he was approved with a decent credit limit for his first solo card, but this would not have happened had he not been able to build on my credit history to get a pretty good credit score. I have shown him how to handle credit wisely so didn't have any qualms about how he would use credit cards.

This is going to have a bad impact on other kids whose parents were doing the same thing I did. Going to make it a lot harder for young people starting their own life to get any kind of decent credit. Back in the dark ages when I was that age, it was really pretty easy to get almost any credit card even if you didn't have a long credit history. That is no longer the case.

Ruth

Applying and obtaining a credit card ain't the only method of gaining a good credit score. The old timers will inform you that before CC, the department stores charge card and "mom and pop" installment plans were PIA and most carried high interest rates from the start.

1. Get utilities in your name, even if a deposit is required. Pay the monthly bill on time.

2. Save your money at a bank or credit union. Borrow against your savings, even if the interest rate seems high.

3. Become a better driver and avoid the accidents and tickets. As mentioned in other threads, bad drivers are getting reamed by insurers, creditors, etc.