Short answer
Piggybacking companies, also called tradeline companies, arrange for you to be added as an authorized user on a seasoned credit card that belongs to someone else. They find the cardholders, handle the paperwork and protect both sides, so you never deal with a stranger directly.
Why piggybacking companies exist
Friends and family often let each other piggyback on a credit card. However, many people don’t have a relative with excellent credit who is willing to add them. That is the gap piggybacking companies fill.
A tradeline company connects people who want to buy seasoned tradelines with people who have high-quality accounts to offer. As a result, you can add years of positive history without asking anyone you know for a favor.
What piggybacking companies handle for you
In short, the tradeline company acts as the middleman. It markets the tradelines, protects the identity of every client and works to prevent fraud. In practice, that covers five jobs:
- Finding cardholders. They recruit people with long, clean payment histories and low balances.
- Verifying identity. Before anyone is added, both sides are checked to prevent fraud.
- Timing the addition. You are added before the card’s statement date, so the account reports on schedule.
- Protecting privacy. You never receive the card, and the cardholder’s personal details stay private.
- Removing you on time. After the agreed term, usually two reporting cycles, you are taken off the account.
How to choose a tradeline company
First, look for a written contract, an identity check, published guarantees and a real refund policy. Also, check that the company is honest about results. No one can promise a specific credit score, because the scoring formulas are private.
Piggybacking is common, too. In fact, the Consumer Financial Protection Bureau found that about a quarter of people with credit files first built their history as an authorized user. For more detail, read why tradelines are legal and how the leading piggybacking companies compare.
Video: how authorized user tradelines work, step by step.