Borrowing a Good Credit Score

Your credit score is used as a basis for determining how reliable you are as a borrower. If you have a low credit score, the interest rates that you will be offered will be significantly higher than those if you have build a good credit report. At worst, you can be even denied a loan or a mortgage if you don't have a good credit score.

However, some clients have made up a way to circumvent this. The tactic they apply is signing as an authorized user of the account of someone who enjoys a good credit score. As a result the positive results are directly reflected in their credit score, which in turn tends to increase. The adding of several such good credit scores, results in a significant improvement in their credit history. As a result, they will be able to receive the desired lower interest rate loan or mortgage.

This tactic has been implemented by an increasing number of companies, which attract clients by offering them the service of paying a fee to borrow the good credit history of someone else. The fee you pay for the service is determined by the number of accounts you want to add to your credit report. The more the number, the higher the fee goes up.

The accounts are taken off when the credit card company reports to the credit reporting agencies. Your credit score will reflect the account information and this data will be kept on the record for the next seven years. As a result, your credit score can be significantly boosted, since the good credit history will balance the negative aspects of your credit report.

Drawbacks of Borrowing Credit Scores

There is nothing illegal in the whole scheme. However, it can be qualified as unethical, because it can be interpreted as a way to mislead creditors and lenders by presenting the good credit history of someone else as your own. This means that you claim a regular payment of bills, when in reality you have not done it.

You have a bad credit score to repair. This, in most cases, means that you have defaulted on your past payments. Thus, even if you get a loan by using this tactic, there is no guarantee that you will not end up in the same situation again and hurt your credit score for a second time.

Additionally, in order to use this tactic you should give your social security number and name to a person you don't know so that s/he can add you as an authorized user. This has privacy and security threat implications, since you are not sure in what ways can the person use your details. You may become a victim of identity theft, which can lead to additional damage to your credit report.

Finally, you should first examine your spending habits before embarking on fixing your credit score, because they are in the root of the problem. Buying someone else's credit score will lead to fewer benefits than learning the necessary discipline of building it for yourself.

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