Piggybacking is a credit strategy where a person uses another’s worthy credit to obtain access to funds they would not have in the past. Unlike identity theft, this method of getting money is perfectly legal and used regularly.

The most common method of this is when parents help their children get a line of credit either with a credit card, auto loan, or home mortgage. It can even be used to refinance a loan.

The reason piggybacking is so attractive is because people with higher credit ratings get better deals. Someone with a FICO score of 750 can borrow money much more cheaply than someone with a 550 credit score. This allows them to pay the same price for a bigger house and better car (find out your credit score now!)

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