Back in December I wrote an article, "Should You Lend Your Good Credit?" in regards to the technique known as "piggybacking" and provided my two cents worth in regards to the loophole used by those needing to improve their credit. In my article about piggybacking I stated;
Essentially an individual who establishes good credit through the method of piggybacking has done so in a seemingly fraudulent manner. With the piggybacking credit method, it seems the mortgage industry is not only potentially defrauded by those who practice piggybacking, but also by the credit rating agencies who allow ones credit to be boosted by piggybacking strategies.The problem I referred to above is exactly what has come to light for the lending industry, as they determined it poised a challenge for them to accurately determine ones credit worthiness if they had benefited from the piggybacking method to boost their credit scores. I also felt it was a bad opportunity for those wishing to sell their credit because it encouraged people to apply for even more credit cards to sell to piggybackers.
Now the lending industry has been enlightened to the problems it has presented them, as the volume of those utilizing the system increased due to the Internet. The opportunity for one to piggyback off another persons credit cards is coming to an end!
Overall, I feel this is a good decision for the lending industry, and allows them to return to rewarding those who truly deserve good lending rates, and not rewarding those who obtained a better score through a credit card and lending loophole. No more piggybacking credit!
This post was inspired by a Link & Blog Challenge!