"Piggybacking" for a better FICO score, has anyone done it?


D

dan

I read an article on one of the major financial sites about how people
are paying to be added as additional users on credit cards owned by
those with well established credit lines. They claim that the
"purchaser" will not actually have access to your card, and will not
receive any critical information. These services are claiming some
pretty decent returns.

Has anyone tried this and sold their info? I was thinking about
calling them and asking for more info. It looks like this might only
be around for another 6 months or so as the major bureau's will be
changing their formulas for the scores.

Dan
 
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J

Justin

dan wrote on [Fri, 8 Jun 2007 03:59:06 -0500]:
I read an article on one of the major financial sites about how people
are paying to be added as additional users on credit cards owned by
those with well established credit lines. They claim that the
"purchaser" will not actually have access to your card, and will not
receive any critical information. These services are claiming some
pretty decent returns.

Has anyone tried this and sold their info? I was thinking about
calling them and asking for more info. It looks like this might only
be around for another 6 months or so as the major bureau's will be
changing their formulas for the scores.
It's a dangerous thing to do. Even if the person never has the
information, they just need to pull a credit report to find out what
bank to contact to get a replacement card.
 
W

wyu

dan wrote on [Fri, 8 Jun 2007 03:59:06 -0500]:
They claim that the
"purchaser" will not actually have access to your card, and will not
receive any critical information. These services are claiming some
pretty decent returns.
It's a dangerous thing to do. Even if the person never has the
information, they just need to pull a credit report to find out what
bank to contact to get a replacement card.
The easiest way to handle that is to keep your cards charged to the
max limits. :)
 
J

joetaxpayer

dan said:
I read an article on one of the major financial sites about how people
are paying to be added as additional users on credit cards owned by
those with well established credit lines. They claim that the
"purchaser" will not actually have access to your card, and will not
receive any critical information. These services are claiming some
pretty decent returns.
Dan. First, the concept reeks 'scam', does it not? Bad enough I have to
shred all my mail for fear of my identity getting stolen, now someone
would offer to 'rent' my good history to a lesser credit worthy person?
No system is perfect, but FICO scores have a purpose and this 'renting'
undermines the intent. Given universal default, won't their default on
one of their credit accounts hit my report as well? You didn't post any
link, but googling [rent your credit rating] led me to enough articles
on the topic.
One of the first articles made it clear that Fair Isaac will likely shut
down this sharing as it does nothing for them and distorts the true
credit worthiness of the 'rating borrower'.

JOE
 
R

Ram Samudrala

I believe people have been doing this for years, but not in the way
intended (to improve a stranger's scores). Generally when you share a
credit account (add an authorised user), the account gets reported
under both SS #s. In my case, when I married my wife, she had ZERO
credit (not from this country). I added her as an authorised user on
a bunch of my cards and a lot of my "good behaviour" transferred to
her and she then had extremely high score. We could then apply for
loans together, etc. Eventually using my joint accounts, she was able
to build her own history, with her own cards, and now I actually would
prefer it if things were treated separately (i.e., if the cards we
share aren't reported on BOTH reports) since it doesn't matter too
much.

I think this is something that a lot of people have done.

Just imagine instead of your wife, it's a stranger. And there's a
broker in between (like an escrow service) who ensures that the
stranger NEVER gets access to your information or card (it's an issue
of trusting the broker, but let's assume you do, like you trust escrow
agents). So I think the danger of your credit being hurt when you
"rent" it out is not that high, but I don't need the money. But
apparently some people make up to $2000-$3000/month doing this.

It is capitalism, something I hear people think what this country is
all about. If you're willing to "rent" your score, so what?

--Ram

dan wrote:
Dan. First, the concept reeks 'scam', does it not? Bad enough I have to
shred all my mail for fear of my identity getting stolen, now someone
would offer to 'rent' my good history to a lesser credit worthy person?
No system is perfect, but FICO scores have a purpose and this 'renting'
undermines the intent. Given universal default, won't their default on
one of their credit accounts hit my report as well? You didn't post any
link, but googling [rent your credit rating] led me to enough articles
on the topic.
One of the first articles made it clear that Fair Isaac will likely shut
down this sharing as it does nothing for them and distorts the true
credit worthiness of the 'rating borrower'.
 
J

Justin

joetaxpayer wrote on [Fri, 8 Jun 2007 16:40:33 -0500]:
I read an article on one of the major financial sites about how people
are paying to be added as additional users on credit cards owned by
those with well established credit lines. They claim that the
"purchaser" will not actually have access to your card, and will not
receive any critical information. These services are claiming some
pretty decent returns.
Dan. First, the concept reeks 'scam', does it not? Bad enough I have to
shred all my mail for fear of my identity getting stolen, now someone
would offer to 'rent' my good history to a lesser credit worthy person?
No system is perfect, but FICO scores have a purpose and this 'renting'
undermines the intent. Given universal default, won't their default on
one of their credit accounts hit my report as well? You didn't post any
link, but googling [rent your credit rating] led me to enough articles
on the topic.
No, their credit would not affect yours.
One of the first articles made it clear that Fair Isaac will likely shut
down this sharing as it does nothing for them and distorts the true
credit worthiness of the 'rating borrower'.
Fair Isaac is supposedly removing the AU accounts from scoring methods.
 
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J

Justin

Ram Samudrala wrote on [Fri, 8 Jun 2007 18:36:30 -0500]:
Just imagine instead of your wife, it's a stranger. And there's a
broker in between (like an escrow service) who ensures that the
stranger NEVER gets access to your information or card (it's an issue
Once again. All the renter needs to do is get a credit report, figure
out which issuer it is and call for a replacement card.
 
R

Ram Samudrala

Justin said:
Ram Samudrala wrote on [Fri, 8 Jun 2007 18:36:30 -0500]:
Just imagine instead of your wife, it's a stranger. And there's a
broker in between (like an escrow service) who ensures that the
stranger NEVER gets access to your information or card (it's an issue
Once again. All the renter needs to do is get a credit report, figure
out which issuer it is and call for a replacement card.
How will the renter identify themselves? Last four digits of primary
card holder? CVS code on the back of the card? Full card number (which
is rarely present in CC reports)> And so on. In ALL my experience,
the authorised user cannot add additional users or request a
replacement without confirmation of the primary cardholer.

Even a request for a replacement card is made and sent it'll be sent to
the address on file.

--Ram
 
J

Justin

Ram Samudrala wrote on [Sat, 9 Jun 2007 03:58:53 -0500]:
Justin said:
Ram Samudrala wrote on [Fri, 8 Jun 2007 18:36:30 -0500]:
Just imagine instead of your wife, it's a stranger. And there's a
broker in between (like an escrow service) who ensures that the
stranger NEVER gets access to your information or card (it's an issue
Once again. All the renter needs to do is get a credit report, figure
out which issuer it is and call for a replacement card.
How will the renter identify themselves? Last four digits of primary
card holder? CVS code on the back of the card? Full card number (which
is rarely present in CC reports)> And so on. In ALL my experience,
the authorised user cannot add additional users or request a
replacement without confirmation of the primary cardholer.
The last four digits is on most of my credit reports.
I have requested a replacement card on an AU account I have from my
wife. She was not involved in the call.
Even a request for a replacement card is made and sent it'll be sent to
the address on file.
While I haven't tried to have it sent elsewhere, all the major lenders
claim they can get a replacement card to wherever you are in a certain
amount of time.
 
D

Douglas Johnson

It is capitalism, something I hear people think what this country is
all about. If you're willing to "rent" your score, so what?
Just because it is capitalism does not mean it is OK. In this case, renting
your score is misleading the lenders. It may be legal, it may not be fraud, but
it should set off ethical alarm bells.

-- Doug
 
J

joetaxpayer

Douglas said:
Just because it is capitalism does not mean it is OK. In this case, renting
your score is misleading the lenders. It may be legal, it may not be fraud, but
it should set off ethical alarm bells.
Thought I'd piggyback your post, as this is what I was thinking this
morning. If one assumes that the renter has zero risk, and the new
borrower has just saved himself money despite the fee split between the
renter and the middleman, then in a zero-sum world, the loser is the
lending institution. While no system is perfect, I've heard little
outcry that the FICO system is unfair. In the end, this practice will
undermine the system and raise cost of borrowing across the board. Do we
really want that to happen? I agree with you that it crosses the line of
ethics, and I'd be happy to see the credit reporting agencies shut it down.
JOE
 
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E

Elle

Ram Samudrala said:
I believe people have been doing this for years, but not in
the way
intended (to improve a stranger's scores). Generally when
you share a
credit account (add an authorised user), the account gets
reported
under both SS #s. In my case, when I married my wife, she
had ZERO
credit (not from this country). I added her as an
authorised user on
a bunch of my cards and a lot of my "good behaviour"
transferred to
her and she then had extremely high score. We could then
apply for
loans together, etc. Eventually using my joint accounts,
she was able
to build her own history, with her own cards, and now I
actually would
prefer it if things were treated separately (i.e., if the
cards we
share aren't reported on BOTH reports) since it doesn't
matter too
much.
Conflating a spouse with a stranger is imprudent in this
instance. If a spouse accumulates debts, then as a matter of
law, the debts often are both the husband and wife's
responsibility. Not always, but often enough that treatment
(of a legal partnership such as marriage) like that you
describe above is usual. If one thinks about the meaning of
marriage, and the power with which the state and so society
imbues this institution, it should make sense.
 

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