Avoid Piggybackers
Heard of piggybacking? You’ve probably known of people who do it, but didn’t know it had a scientific name. Well, to get into definitions, it’s a situation wherein you let someone borrow the good credit history on your credit card by allowing him/ her to become an authorized user. And when you do this, you are opening the proverbial can of worms. Agreed, there are quite a few piggybackers who are responsible and will not lead to damage your credit history. But more often than not, piggybakcers are guys who are trying to either establish credit or get a boost to an out of shape credit.
Basically, when you add an authorized user to your credit card account, you are allowing the credit history of that particular card to be transferred to the new user’s credit files. In this kind of an agreement, the authorized user can use the card, but does not have any contractual responsibility to repay any of the charges on the card. And this includes charges the user makes.
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