Credit Matters

I heard and interesting news report today that I thought I’d pass along.  For those of you that don’t know what credit piggy backing is, it goes something like this:  someone with less than perfect credit is looking to improve their credit score do they find, (or pay) , someone with outstanding credit to put them on their account.  They don’t actually get a credit card, but they do get credit for the new account they’re on.  By doing this consumers are able to increase their credit score in a very short period of time. 

The news report spoke about the new wave of Credit Piggy Backing, and how, as you might imagine, the banks and credit card issuers are none to happy about it.  Their take on this is that by doing this consumers are actually committing fraud. 

I’m not going to argue the pros and cons of this issue but there are a couple of things to take note of. 

First: It appears to me that the credit card issuers and banks are not going to stand by and allow consumers to take advantage of this loophole in the system.  I would expect to see some changes soon that would make this technique obsolete within the next 12 months or so. (The banks and credit card issuers aren’t going to lose money to long.) 

Secondly: The term fraud was brought up in this report, I’m not sure I would be too worried about that in the context of the news report.  But I would be concerned that if I were to pay someone to borrow their credit that I would be taken advantage of.  In this day and age you can bet there are people out their right now setting up programs to defraud individuals out of their hard earned money. 

Credit repair is just like any thing else, the best way to do it is to do it the right way.  It will take a little bit longer but the chances of you losing money are greatly reduced. 

Take a look at CreditCardMonitor.Org’s Credit Repair page and get your free copy of the “7 Credit Secrets” for free.