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In the past one of the best raise credit score techniques was piggybacking. This is the process of using someone else's credit to increase your own. For example, if person A has bad credit, all they would have to do is have good credit person B add them as an authorized user on one of their credit cards with a long good repayment history. As a result, this information would be added to the bad credit person's credit report and their score would instantly increase.
This was the surest, fastest and most effective way to potentially increase a person's credit score over 100 points. Unfortunately, this strategy does not work anymore, or not as well anyway.
In 2008, the Fair Isaac Corp (FICO), the main credit scoring agency, changed the way they compute people's credit scores. One of the things they did was closed the piggybacking loophole in order to put and end to this controversial practice. Originally, this was allowed because it helped parents establish good credit for their children as they started their adult life.
Since people discovered how powerful and effective piggybacking was, they started abusing the loophole. Credit brokerage companies and people started "renting" their credit to other people in exchange for several thousand dollars. Not only is this a risky move for the person with good credit, but it manipulates the credit scoring system as a whole in a way that makes it ineffective.
As a result, in 2008 FICO closed the piggybacking loophole by no longer factoring the co-authorized users accounts into their credit scoring formula. Now consumers have to face the music when it comes to bad credit and use other strategies to fix their credit score.
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