9 Year Mortgage on the New FICO 08 and Its Effects on “Piggybacking”

If you’re worried about your credit score, join the club! As you know, it takes one minute to hurt your credit score and normally years to repair it. You may be in a better financial situation  now than you used to be, but somehow your past two years of prompt payments has done little to raise your credit score. For years, credit repair clinics have been assisting clients who find themselves in this same predicament by using a method called “piggybacking”. In the following passage, 9 Year Mortgage will continue to discuss what this “piggybacking” entails as well as what the new FICO 08 program does to stop such actions from occurring.

9 Year Mortgage Talks Everything “Piggybacking”

So what exactly is “piggybacking” you ask? Well it simply is when a credit repair clinic attaches an individuals name as an authorized user on an account with excellent credit. This allows the attached individual to reap all of the benefits of another’s long credit history, low balances, and high credit limits in order to raise their own personal credit score. Although this “piggybacking” on another’s good credit may seem like a simple and fast fix to repairing credit, it does not work as well as it once did.  9 Year Mortgage would like to point out that over the past several years there has been some changes to how FICO rates an individuals credit. Such changes have made it very hard for “piggybacking” to work without it being detected. You may be wondering how FICO could even tell if you were just added on as an authorized user or as an actual legitimate and intended authorized user. Well, 9 Year Mortgage intends to answer not only that question, but probably a few others that you have.

9 Year Mortgage on FICO and Their Changes In Recent Years

9 Year Mortgage believes that it is important for every individual to know and understand the history and the changes that FICO has made, especially in the past three to four years. Understanding the determinants of how your credit score is calculated is essential in maintaining or fixing it.  About three years ago, FICO made a decision that was eventually reversed due to violation to credit regulations. Prior to its reversal, FICO announced that they would no longer include authorized users in their new scoring model; meaning “piggybackers” could no longer get away with their deceptive and manipulative practices. It also meant that spouses or a stay-at-home mother could no longer be included with their spouses credit score. The latter is where the violation to Regulation B occurred, which states that it is required for lenders to consider credit histories on accounts shared by spouses when determining a married individuals credit. With this new method being revoked, it continued to allow “piggybackers” to pursue on their trek of getting a better credit score quickly.

Now, 9 Year Mortgage would like to mention that the newly issued FICO 08 was created by a handful of mathematicians who have found a way to pick out illegitimate authorized users or those also known as “piggybackers”. The question that no one but FICO and their mathematicians knows the answer to is “How do they know who is a legitimate authorized user and who isn’t?” To clarify, a legitimate authorized user is anyone who has a justifiable relationship with the primary account holder, such as a spouse, child or parent. In order to determine if you have a verifiable relationship with the account holder, 9 Year Mortgage suggests that FICO may compare last names, current addresses, or they may actually flag accounts with a certain amount of authorized users on it. Through a combination of these techniques, or others, FICO would be shown those accounts who have 10 to even 100 authorized users on them. You may think we are exaggerating, but back in the “piggybacking” frenzy, it was not uncommon to have accounts with up to 100 users attached. Since no one really knows for certain the methods FICO uses in order to determine genuine relationships attached to an account, the point 9 Year Mortgage is trying to make is that there are definite ways to find “piggybacker’s” just by looking at your credit report.

The  recent interest of internet users in piggybacking and the claims of credit repair companies who believe that piggybacking still works leads us here at 9 Year Mortgage to believe that people are still being charmed into that quick fix for a credit score. If anyone is still “getting away” with piggybacking, we’re sorry to say that we believe this will be short-lived. As of now, over 3,500 banks and lenders are using the new FICO 08 system, with Citi Bank and Bank of America confirming their use of the system. With FICO 08’s new formulas and technologies being so greatly praised by financial institutions, it is likely to see the adoption of this program by all lenders, meaning there will be no way piggybacking will go unnoticed.

Wrapping It Up With 9 Year Mortgage

Although we will most likely never know with surety which other lenders have switched to the new FICO 08 model, seeing it is unusual to make that information open to the public, you can bet that any lender planning on transitioning to the newer model will do so swiftly. In the past, transitions from different models of FICO was a timely process. However, the transition to FICO 08 has been the fastest growing adoption rate that FICO has seen since 1989. So in conclusion, if you are thinking of trying to better your credit score in a hurry and you see piggybacking as an option, it very well might be; But finding a lender who has the old FICO model may soon be harder than finding a needle in a haystack. Yes, piggybacking does help boost your credit score, but there really is no way to know if your lender has upgraded to the new FICO 08. 9 Year Mortgage suggests that you fix your credit the right way, through paying your debts off in full each month; we guarantee knowing you earned your credit score will give you greater satisfaction (especially once you see the options available to you and your newly improved credit score). 

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