ICB Trade Lines – Piggyback Credit Increases FICO Score
Many people are against the concept of piggybacking. Piggybacking is when someone with poor credit is authorized to use a credit card of another person having a good credit history.
Thus, they can benefit from having the payment history of the authentic cardholders show up on their credit reports, leading to a boost in their credit scores. It’s like they are given a free ride. But creditors are complaining as it is pure fraud and is contradictory to the real credit scoring system.
Spare some time to watch this video and know for yourself what’s in it behind this system flaw.
Categories: Credit Score Videos Tags: Credit, Credit Score, FICO, Piggyback, Score, System
How does the credit score point system actually work?
Question by tak3032: How does the credit score point system actually work?
I want to know how do they determine the credit score point system. I know what is credit and how it works. But I want to know the numbers part like if someone runs your credit report it takes off 2points from your score, another is what if your late on your payment how much does it take off then and if I have a loan for a certain amount does that mean I get a big score or a low score? I have some old accounts (5yrs old) that need to be paid off but if I do pay them off will it really make a difference on my score? Next thing you know I pay them off and then my score only goes up by 4 or 5 points or will I even get a point. What would be the purpose then? At the same time if creditors do look at my report yes it would show paid off but the history would still show that I was delinquent for 5yrs. Whose gonna want to give me a loan any ways? Basically what is the point system and how is it calculated? Let me know so I can start to repair my credit. Much thanks and I appreciate it!!!
Best answer:
Answer by Still reading
You will get a lot of answers about how to work on your credit score. The system is proprietary and held very closely by the company which owns the system–Fair Isaac. Many people with experience with a lot of borrowers have seen specific actions affect individual credit scores. And, they can give you recommendations. But, honestly, the only way to “fix your credit score” permanently is to pay off the bills you owe. Your score may not be immediately impacted, but this action will reflect your earnest attempt to deal fairly with those who have lent you money in good faith. There are no instant fixes, but you have a better story to tell if you can say that you had loans delinquent for 5 years, but when as soon as you were able, you began to pay them off and are now handling your credit responsibly. You’re right in the supposition that no matter how many delinquent accounts you pay off, you won’t see a quick improvement in your score. But, you might find individual lenders willing to take a chance on you. And, once you get some new credit (after paying the old bills) and handle the new credit well, you’ll build your score slowly and steadily back to where you need it to be. It took years to earn a low score; it will take considerable time to prove that you’re a worthy borrower.
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