It's perfectly legal, yet there are concerns about personal privacy and safety.
Low credit ratings can have repercussions that stretch far and wide. If you have a low credit score and are looking for a mortgage or another sort of loan, it might lead to a higher interest rate or, even worse, a denial of the loan altogether. Some customers believe that they have discovered a flaw in the system.Background
This technique is known as "piggybacking." If you are listed as an authorized user on another person's credit account, the history of that account will be included in your own credit report. Your credit score has the potential to improve if the account for which you are an authorized user has a credit history that has been favorable in the past. If your credit score isn't very high, to begin with, adding a few of these accounts could boost it to the point where you qualify for a loan at a better interest rate or get accepted for the loan altogether. Some people are willing to "borrow" the better credit information that another person has put on their credit report in exchange for a price.How to Get Better Credit by Buying It
You will need to pay the company a fee that can range anywhere from a few hundred to a few thousand dollars, and this fee is determined by the number of accounts that you wish to have added. You will be asked for both your name and your Social Security number. The company searches for customers who have accounts with excellent credit and asks those customers if they would be willing to add you as an authorized user to one or more of their accounts. After the credit card issuer has reported your late payment to the relevant credit bureaus, you will be removed from the accounts. The account information is used in the calculation of your credit score and stays on your credit report for a period of seven years. Your credit score can go up as a result of the positive payment history if there is also unfavorable material on your credit report.Legal, but Questionable
It is dishonest, despite the fact that for the time being it is legal. You are giving creditors and lenders a false impression of your character when you use someone person's stellar credit history as if it were your own. In essence, you are pretending to them that you have paid your expenses in a timely manner while the truth is that you have not. If you use any of these strategies to get authorized for a loan, then you have done so by providing misleading information. The credit scoring system was put into place for a specific purpose, and that purpose is to provide creditors and lenders with a method by which they can make prudent lending decisions. The credit rating system is more honest about whether or not you will pay your bills than you are, despite the fact that there are certain exceptions to this rule. If you get approved for a loan or credit card but do not have the spending habits to make payments on time, it is quite possible that you will default on the loan or credit card and end up harming the good credit score that you paid hundreds or even thousands of dollars to obtain.Concerns About Personal Information and Safety
If you want to be added as an authorized user to the other person's account, you are going to have to supply your social security number. The individual that adds you to their accounts will have access to your social security number once they have done so. The procedure is set up, you have no way of knowing who the other party is or what level of discretion they will exercise with regard to your private information. If you give out your Social Security number to anyone, there is always the possibility that your identity will be stolen. Do not be under the impression that simply because you already have poor credit, extra harm cannot be done to your reputation if your identity is stolen.A More Effective Method
Rather than paying thousands of dollars in order to rent the good credit of another person, you should spend that money in order to improve your own credit. Conduct an audit of your financial obligations and formulate a strategy for paying them off. Instead of trying to pass off someone else's strong credit as your own, you would be much better off developing the discipline necessary to obtain a decent credit score on your own. This would benefit you much more in the long term.