A common question we get here at Wholesale Tradelines is, “are tradelines legal?” We have allocated extensive resources to ensuring we have the correct answer regarding the legality of “credit piggybacking.”
The reader’s digest version is yes, the act of being added as an authorized user to someone’s credit card is legal and is protected by the provisions in the Equal Credit Opportunity Act of 1974 – Regulation B. Although it is legal, it’s usually considered a disliked practice by society, credit bureaus, and lenders.
The practice of renting credit tradelines, also known as “credit piggybacking” consists of adding an individual with a low credit score as an authorized user to a credit card of an individual with a high credit score. The process tends to improve the credit score of the individual with the low credit score due to the incorporation of the credit history of the highly rated profile on subsequent credit reports of the lower-rated profile. The practice has been in widespread use for at least the past twenty years, and at a time attracted significant scrutiny from Federal Regulators and the creators of the credit “FICO” Score, the Fair Isaac Corporation.