A robust and healthy credit profile takes time and careful planning. While building credit is a personal journey, one effective way to jumpstart it is by being added as an authorized user on someone else's credit card, a practice also called piggybacking. This can help establish a credit history and demonstrate responsible credit use.

How does piggybacking credit work?

When you're added as an authorized user (AU) on someone else's account, the new card will appear on your credit profile as an authorized user account. If the account was opened 10 years ago, your credit report will show a 10-year credit history. This can significantly boost your credit profile.

In order to be successful with piggybacking credit, make sure the card you’re being added to has the following requirements:

• The card is at least two years old
• The card does not have any late payments
• The card does not have high balances
• The card was used recently

Does Piggybacking work with all credit cards?

Not every bank will report an AU to the credit bureaus, and not all banks will report the complete history (back dates).

Check out this list.

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When being added as an AU, try to use your own address—not the primary cardholder’s address. Because the address used will be the address that will show up on your credit report.

At what age can I add my child as an authorized user?

The minimum age needed to be added as an authorized user to your accounts depends on the rules set by each credit card issuer.

Here is a list.

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Did FICO stop piggybacking credit?

FICO (the company that created the scoring models used by most lenders) did not like piggybacking. The reasoning behind their dislike of piggybacking is very simple; Piggybacking allows consumers who do not deserve a higher credit score to fool the system. They pay a few dollars to some company to get added to an account and reap credit benefits.

Therefore, in the newer scoring models starting from FICO 08, FICO stopped counting in accounts on which you are only an authorized user.

FICO does have a legal obligation under the Equal Credit Opportunity Act to allow piggybacking. FICO claims to have a way of knowing if the piggybacking is from a legitimate source or from an unrelated third party.

Does piggybacking credit work to get approved for a credit card?

But even if you do see your Fico score shoot up due to piggybacking credit, don’t expect to get approved for any high-end credit card. Banks can see on your credit report that your credit score is based on authorized users and therefore will not count it. In most cases, piggybacking credit will only work to jump-start your credit to give you a better chance to get approved for a low-end first credit card like the Capital One Journey or Discover It.

Does piggybacking credit work to get approved for an auto loan?

Auto loans will have the same issue as credit cards. The banks will see that the credit is built only on authorized users and will, in most cases, decline the loan.

Does piggybacking credit work to get approved for a mortgage?

The only sweet spots are mortgage loans. Mortgage loans still use the older FICO scoring models which still factor in authorized users in the scoring model. Therefore, piggybacking credit still works to build your score when applying for a mortgage.

But keep in mind that if you do not have any of your own credit cards on your credit report then some banks will decline the application due to underwriting guidelines. If you’re dealing with a mortgage broker, make sure they are aware that your credit score is built on authorized users only and they should only shop your mortgage at banks that will approve such a type of credit file.

Conclusion

Getting added as an authorized user on someone’s credit card is a great way to jump-start your credit. But never rely only on authorized users. Make sure to also get at least two of your own credit cards so you start building your own, solid credit file.