How to Piggyback Your Credit Card

Authorized users benefit from your good credit history.

You can help a friend or family member improve his credit rating through a process known as "piggybacking". This allows you to add the individual onto your credit card account as an authorized user, after which the credit card company will report your credit card account history on that person's credit report as well as yours. The positive payment history on the account serves to boost the user's credit scores.

Things You'll Need

• Credit card
• Authorized user request form

Instructions

1. Call your credit card company and ask if it will allow you to add an authorized user to your account. Some credit card accounts don't permit authorized users while others limit their number.

2. Fill out an authorized user request form. Some credit card companies make this form available for download. If not, you can ask your credit card company to mail it to you. To complete the form you'll need the person's address, birth date and Social Security number.

3. Mail the authorized user request form to the credit card company or, if your credit card company provides online forms, submit the form online. The authorized user's account should become active within 30 days.

Tips & Warnings

• Authorized users can make purchases using your credit account. Only add an individual as an authorized user if you're certain she will repay any debt she incurs against your account.

• You are legally responsible for any charges your authorized users make.

• If you make late payments to your credit card company, those late payments will hurt not only your credit but your authorized user's credit as well.

References

• CreditCards: Piggybacking is Still an Option, But Proceed With Caution
• Interior Federal Credit Union: Visa Credit Card Authorized User Form (PDF)
• Bankrate: Dangers of Being an Authorized User

Resources

• Bills: Information on Credit Reporting for Authorized User
• MSN Money: 9 Ways to Build Credit From Scratch