Credit Piggybacking: Become an Authorized User to Boost Credit

Key takeaways

• Credit piggybacking is becoming an authorized user on a credit card account.
• Becoming an authorized user can help you improve your credit score or build credit from scratch.
• Paying a company for credit piggybacking is risky to your credit.

What is an authorized user on a credit card?

An authorized user is someone who is allowed to make charges on a credit card.

Authorized users aren’t responsible for making payments, but the credit card account activity will appear on their credit report. This can help authorized users build or improve their credit.

Do authorized users build credit?

Yes, you can build credit by becoming an authorized user. Here’s how it works.

When the main cardholder adds you to their account, the credit bureaus typically add the account to your credit report. This will create a credit history if you’re credit invisible (meaning you don’t have credit yet).

From there, the credit bureaus will include activity from that credit card on your credit report. This can generate a credit score if you don’t yet have one or improve your score if the cardholder makes on-time payments and maintains a low balance.

Minimum age for authorized user on a credit card

Some credit card companies allow young adults aged 13 to 18 to piggyback on a parent’s credit, and others don’t even list a minimum age requirement.

Since minors can become authorized users, and the minimum age to get your own credit card is 18 to 21, adding a child to a credit or debit card account is a popular way for parents to give their kids a financial head start. In fact, 25% of American parents have done so.

Paying for piggybacking

Many shady credit repair companies advertise what’s known as “tradeline renting,” or paying to become an authorized user on another person’s account.

If it sounds too good to be true, it is — lenders frown upon the practice and may consider it fraud. And since you don’t know the primary cardholder, you can’t be sure that they’ll continue to pay their card on time.

Whenever possible, consider alternatives in order to avoid tying your credit to a stranger’s.

Other ways to build credit

Loans

Making on-time loan payments boosts your credit, and certain types of loans are easier to get if you’re new to credit.

Credit-builder loans and secured loans have lower (or no) credit requirements because the lender can take your collateral if you stop making payments. You can also improve your odds of qualifying by having a trusted person cosign your loan.

Credit cards

You can use your own credit card to build credit, but consider the following types of credit cards that are easier to get if you’re struggling to qualify:

• Starter credit cards: Credit cards for limited or no credit history typically come with higher approval odds because they’re designed for people new to credit.
• Secured credit cards: It’s easier to qualify for a secured credit card because the lender can take your collateral if you don’t pay.
• Credit cards for bad credit: Certain credit card companies specialize in cards for bad credit, but be prepared to pay higher rates. This will make it expensive to carry a balance.
• Student credit cards: College students can take advantage of student credit cards, which often have lower eligibility requirements in terms of credit history.

Report bill payments

You can report your rent payments to the credit bureaus to boost your credit, but you’ll likely need to pay a rent reporting payment company to do so. Experian Boost is free and can help you improve your Experian credit score and report by reporting rent and utility payments, but it will only affect your report for one of the three major credit bureaus.