ICB Trade Lines – Piggyback Credit Increases FICO Score
Fair Isaac Corp., the company responsible for FICO credit scores, has decided that when it unveils a new version of its credit score system in September, it will close the loophole that allowed piggybacking.
Angry proponents of piggybacking say they’ll organize a grass-roots campaign to fight against the change.
With piggybacking, a consumer with poor credit is placed as authorized user on the credit card of a person with a stellar credit history. Authorized users benefit from having the payment history of the primary cardholders show up on their credit reports, thereby improving their credit scores.
Lenders have complained that it is fraud and distorts the credit score system.
Internet companies have created an industry by playing middleman — paying a small sum to those with good credit to take on those with bad credit as authorized users, then collecting healthy fees from those consumers.
Now one of those Web-based firms has threatened to organize an effort to expose problems in the credit scoring system.
“Our very existence (proves) that the FICO system is so flawed,” says John Coates, spokesman for Instant Credit Builders based in Largo, Fla.
Fair Isaac says that starting in September it will ignore authorized users as it calculates the renowned FICO credit score.
“Fair Isaac has become aware that Web-based services are using authorized trade lines to defraud lenders,” says Craig Watts, spokesman for Fair Isaac. “While we work with the financial services industry on an industry solution, we wanted to protect lenders and FICO scores.”
The FICO credit score is used by lenders to assess risk in lending money. Lenders factor this number, which can range from 300 to 850, in credit decisions. Watts says 90 percent of the largest U.S. banks base their loan decisions on FICO credit scores.
Watts says the change will prevent people from misleading lenders about their true credit risk.
Coates argues the system can’t be easily changed.
“Maybe our system can definitely show you, OK, there seems like there’s a loophole and there are flaws that increase the score. You know what? There are also a zillion flaws that decrease the people’s scores.”
He says Instant Credit Builders plans to bring to light every flaw in the credit scoring system.
“We are building a community of people that are going to stand up. We will petition against it and we are actually going to formulate plans to work together as a grassroots effort to actually create a financial revolution,” he says.
Those who rent credit histories won’t be the only ones suffering a loss. Often parents will attempt to give their children a jump-start on a good or improved credit history, and they’ll be taking a hit as well.
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February, 4th 2010 at 12:00 pm
Guy’s they closed …
Guy’s they closed this loophole for good lol
February, 4th 2010 at 12:00 pm
please let me know …
please let me know all info needed.
thanks
February, 4th 2010 at 12:00 pm
hook me up with …
hook me up with this info i thought you couldn’t do it anymore
February, 4th 2010 at 12:00 pm
My dude. Do you …
My dude. Do you have the company info? I need that. I you could get me the company info it would be nice. Thanks in advanced.
February, 4th 2010 at 12:00 pm
it really does work …
it really does work. i did it after my neighbor experimented and his score went up 110 points in like a mnth!! mine went up 150!! I have the company info if anyone wants it.
February, 4th 2010 at 12:00 pm
can you put me down …
can you put me down with the company you used for your credit repair. and i will give you a fee for helping me out.
February, 4th 2010 at 12:00 pm
what company did u …
what company did u use to buy your tradelines and call me at 843 314 3778 now ask for michelle
February, 4th 2010 at 12:00 pm
Please let me know …
Please let me know how you did that.
February, 4th 2010 at 12:00 pm
Man I would love to …
Man I would love to know exactly how let me know!!!
February, 4th 2010 at 12:00 pm
Who was your …
Who was your contact and how much did it cost?
February, 4th 2010 at 12:00 pm
Hi can you tell me …
Hi can you tell me your contact on how to fix the credit? How much did it cost you? thanks
February, 4th 2010 at 12:00 pm
What company did …
What company did you use for the tradelines.
I had a construction business I had to close and my credit dipped below 600, it was 750.
February, 4th 2010 at 12:00 pm
can you tell me …
can you tell me which company you used and how long it took 4 your score to get raised
February, 4th 2010 at 12:00 pm
The idea still …
The idea still works i did it and it worked my score was 536.. then i bough more trade-lines and it jump to 787.. now its 822… i was able t buy my new house 678,000 on sale 356,000 rate @ 2% i pay only 1265 a month… abd i got a bmw 745Li and a BMW X5 truck.. i can get just bout anything i want thanks to this its real and it works and its legal.. i love it!!
February, 4th 2010 at 12:00 pm
This idea is no …
This idea is no more. A better idea was always to actually borrow money yourself and hold it on deposit. Then you have the credit and the seasoing funds on deposit. You can borrow $50k to $5 mil. with NO CREDIT CHECK at creditloader dot com.