PIGGYBACK CREDIT

When you say the phrase “piggybacking” you immediately think of someone riding on someone else’s back to get to the same destination. The process of piggyback credit scores to improve a credit rating has been going on for a long time (over 40 years to be exact).

The simple definition of piggyback credit is the increasing of someone’s credit score by making that person an authorized user of a credit account in good standing with the credit bureaus. The positive credit history of the piggyback credit account post on the authorized user’s credit report within 30 to 60 days of addition.

Some credit card companies make piggybacking easier than others. American Express allows up to 99 authorized users per card and makes it very easy to put authorized users on an account. Bank of America only allows two or three authorized users per account and will often reject authorized users that are not immediate family members.Credit repair companies began offering a service that allowed people to buy authorized accounts on the credit cards of complete strangers.

​ Anyone looking to get a temporary boost to his or her credit score can pay money to a credit leasing company, and then the credit leasing company would purchase an authorized account on someone else’s credit card.The individual selling the authorized user account would get a card in the mail for each authorized account that was opened. The one thing that protects the main account holder in this relationship is that the extra card goes to the home address on the account and not the address of the authorized account.The business has become so lucrative that people with good credit are getting credit cards specifically to sell authorized accounts. They maintain a small balance on the card so their credit score remains high, and then sells the account to someone seeking to improve their credit score through a credit leasing company.

When you purchase trade lines from us, we add you as an authorized user to our revolving credit accounts which have years of PERFECT payment history and tremendously low utilization ratios. Each month the creditor reports this history not only for the primary cardholder, but also for the authorized users on the account. This is known as credit ”piggybacking“. Seem to good to be true? It’s not…It’s real, it works and it’s completely legitimate. About 35% of credit reports contain at least one authorized user account, so their presence is not unusual.
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NO CREDIT HISTORY?
We Can help! Trade lines are just as effective at establishing new credit as they are for rebuilding poor credit simply because the payment history on our authorized user accounts is based on when the account was originally opened rather then when you were added. Combine that with the added drop in your credit utilization ratio and you can see why credit scores can increase so much by simply adding a positive trade line to your credit report. There is no deception, there is no fraud…these trade lines show up on your credit report. Most importantly, there are no restrictions on who can add you as an authorized user.

What does bad credit really cost you?

The average individual with bad credit has no clue of what effects their credit score nor the effects of having bad credit does in reference to the impact of how much extra they pay in interest rates
According to Credit.com 61 million Americans have sub-prime credit scores between (500- 649)

What is "utilization ratio"?

If you have bad credit more than likely you are unable to obtain credit from prime or even sub-prime lenders. If you are in need of funds then this obviously is a problem, however if you are seeking solely for a way to increase your credit score this could actually play out in  your favor with enrollment in our Credit Leasing Program. Given a term called your "utilization ratio" ​which is defined as the ratio of your credit balances to your credit limits as listed on your credit report. For example if you have a line of credit of $1,000 and you have a balance of $300, then your credit utilization would be 30%. The lower your credit utilization is the better for your credit score.

AskMrCreditCard.com - "Do not charge more than 30% of the available balance on any of your credit cards. Banks like to see a nice record of on-time payments, and several credit cards that are not maxed-out. If you are carrying high balances on your credit cards, then make paying them down under 30% a priority."

AP Los Angeles Business Writer Alex Veiga - "Credit experts say the single best way to improve one's credit score is to make payments on time and keep credit balances at 30 percent or below your total available credit."

Atlanta Journal Constitution - "Pay down your credit so that you don't owe more than 30 percent of the credit limit, and have a 'healthy' mix of credit." 

CreditCards.com - "To boost their credit score, a borrower should maintain low credit card balances, with experts recommending that the amount owed should not exceed 30 percent of the individual's credit limits."
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New York State Senator Charles J. Fuschillo, Jr. - "Limit the use of each of your credit cards to 30% of the card's credit limit. Having too many maxed out cards could lower your score." 

WikiAnswers - "Also, if you have a high limit but 30% or less balance owed, that is the strongest for FICO purposes." 

Washington Post - "If you are using more than 30 percent of your available credit balance on any one card or on all of them together, you could see a significant drop in your credit score."
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How Our Credit Leasing Program helps your credit utilization ratio?  

• First, we start you off with extending you a non accessible line of credit for a substantial amount (typically $5,000 - $10,000) we keep your credit utilization ratio low by only showing balances below 25% (in this scenario $2,500) on your credit report.
• Second, we show a steady and consistent monthly payment towards the balance. After approx 3 months the balance is paid off with a zero balance.
• Third, after the balance is paid off we increase the credit limit (which reflects on your credit report).   

Paying down your balances can improve your credit score, and the sooner the better. FICO's Score Simulator offers an example in which an individual with a credit score of 600 could raise their score 70 points by simply opening up a line of credit for $5,000. (keep in mind the simulation runs this for an individual with 6 open lines of credit, the impact of someone with only one open line of credit will increase this number much higher.

Keeping Medical Records off of Your Credit Report

How to Keep Medical Collections Off Your Credit Report

Collections of any sort on your credit report don't look good, and can do long-term damage, but medical collections can be particularly harmful. The possibility of removing them isn't as straight-forward as the debt validation process, for example, 

that works so well for credit card collections. Once it's on your report as in collection status, medical debt is probably there to stay for a good seven years, even if you manage to pay it off before then. Bottom line, the best way to keep medical 

collections off your credit report is to find a workable way to pay the debt via some sort of compromise with your medical  providers

Can I Negotiate With Hospitals and Doctors on Medical Debts?

Yes, but you want to do so immediately, as soon as the debt is incurred. Contact the billing department and, in as patient   and polite a manner as possible, explain that you would like to resolve the debt but cannot afford to do so at the full billed 

amount. Start by asking for a discount, which can prove to be a particularly successful tactic if you are able to offer to pay the full discounted amount immediately, in full. Note, fifty percent of people who ask medical providers for discounts receive them. However, if you are unable to secure a discount, ask for a payment plan, which you are more than likely to receive

When is Medical Debt Turned Over to Collection Agencies?

Typically, hospitals and physician groups turn your debt over to a collection agency 60 to 90 days after the debt is past    due.

How Long Do Medical Debt Collections Stay On My Credit Report?

Medical debt may stay on your credit report for as long as seven years, even after they are paid in full. It is the most common collection item on credit reports, with paid-off listings currently staining the credit of more than three million Americans. What's especially heartbreaking about this statistic is that most of these collection items are for debt not much more than a couple of hundred dollars. New legislation has been introduced that would require credit reporting agencies to remove medical collections within 45 days, if and when the debt is paid in full.

Can I Remove a Medical Collection Listing Via Debt Validation?
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While you can certainly try, debt validation rarely works in this case, as collectors keep much better records for medical collections than credit card debt, for example. In other words, collectors likely have all the documentation they need to prove you owe the debt, including the original creditor, debt amount, etc. For this reason, it is imperative that you deal with medical debt before it goes to collections. You will probably be pleasantly surprised at how helpful medical providers can be about working with you for a resolution, which ultimately serves the best interest of all involved.

Common Mistakes that Ruin Your Credit

We have written numerous articles about how filing bankruptcy can ruin your credit and severely damage your credit score. Declaring bankruptcy is no small feat and we hope there was a lot of thought and planning on your part prior to making that decision. There may be some other financial moves you have made, or are going to make, that at first glance may seem harmless but in the long run can really do a number on your credit. You might not realize the significant fall-out to the following seemingly insignificant financial moves.

Keeping a Zero Balance
I know we beat it into your head that you should be paying off your debts, but, paying off a credit card completely every month does not help your credit score - it doesn't hurt it either. When you pay off your card and have a zero balance on this line of credit, it does not factor into your credit utilization ratio. This ratio is the percentage of your credit limit that is being used and factors into 30 percent of your credit score. Here is how to calculate your credit utilization ratio: Locate your credit balance and credit limit on your last billing statement.Divide the credit card balance by the credit card limit. Multiply that number by 100. The lower this number, the better. Leaving a small balance on your card each month will help to increase your credit score. Oddly, your credit score can actually drop when you bring a card balance down to zero. 

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Keeping a High Balance
Now on the other side of the spectrum, having high balances on your credit cards is not good for your score either. As we 

mentioned already, the amount you owe on your accounts determines about 30 percent of your credit score. Lenders 

consider those who use a low percentage of their credit, say around 35 percent or less, to be a low credit risk. And being a low credit risk means getting lower interest rates on your loans. Spending 80 to 90 percent of your available credit limit will 

negatively affect your credit score. As we saw in the calculations above, having a high credit card balance will equate to having a higher credit utilization ratio which will lower your credit score. Moral of the story, keep you balances low but not at zero.

Negotiate a Lower Annual Percentage Rate
Negotiating a lower annual percentage rate on your credit card may seem like a smart move for cutting expenses and boosting your savings account, but when you do, ensure that your creditor doesn't reduce your credit limit. If that happens, it could affect your credit utilization ratio and lead to a drop in points.

Closing a Credit Card Account
If you've struggled to pay off a card, your initial reaction may be to cut it up and close the account. Resist the urge. Various factors are taken into account when calculating your creditworthiness, and 15 percent of your score is determined by the length of your credit history. By closing an account, especially an older one, you shorten your credit history. The more established accounts you have, the higher your credit score.Credit card companies also look at how much of your available credit you are using, i.e. your credit utilization rate. As we mentioned before, they like to see 35% or less of your credit in use at any one time. Paying off a credit card and leaving it open improves your utilization score, but closing it could do just the opposite.

Applying for New Credit
We are not saying to never apply for new credit, just make sure to do so very gingerly. Every time you apply for a new credit card, car loan, or cell phone plan, someone is going to pull your credit. This credit inquiry constitutes a "hard inquiry" which is likely to ding your credit score. ​So, if you are looking for a good interest rate, which means you are rate 

shopping, make sure every lender you visit is not pulling your credit first. Make your final decision BEFORE having your credit pulled by the lender so that way there will only be one hard inquiry on your credit report. ​It may seem like maintaining a good credit score is hopeless, but there are ideals you can strive for to achieve a good credit rating. Naturally, some of the above mentioned transactions are easier to avoid than others. By knowing the threat they pose to your credit, you can better understand when these moves really make sense. 

To sum it up:

The ideal number of loans or credit lines open is 6 - 21.
The ideal number of credit inquiries is 0-3 in the last 6 months.
When shopping for the best interest rates, have the lender do a
"soft pull" of your credit.
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A 5+ year credit history is ideal. The longer the credit line is open,
the better.
​5 to 35 percent credit line utilization is ideal. Again, you don't want the
balance to be zero nor do you want to have your credit card maxed out.

How Paying Your Rent Can Boost Your Credit

How Paying Your Rent Can Boost Your Credit.  

Your Credit Can Benefit From On Time Rent Payments Paying your rent on time each month feels good and, of course, saves you the unnecessary expense of late fees. But what if on-time rental payments came with a benefit that went beyond boosting your self-esteem and bank account, and extended to your oh-so-hard-to-penetrate credit score?! Now, thanks to an innovative development from one of the major reporting agencies, paying your rent on time each month may rank at or near the top of your most promising credit repair strategies.  

How Can Paying My Rent On Time Help My Credit? In the past, only negative rental histories were reported to the three major credit reporting bureaus Experian, Trans-Union and Equifax. However, Experian recently changed the game, now calculating rental histories into its credit scores. So if you pay your rent on time, and that payment is reported as such by your property manager or landlord, your credit score benefits.

How Does Experian Collect Rental Histories? Experian acquired RentBureau, another credit reporting agency that reports specifically on the history of rental payments. These rental histories are now used in calculating Experian credit scores.  

Do All Property Managers and Landlords Report On-Time Payments to RentBureau? Unfortunately, no they don't. While there are more than 8 million renters listed in the RentBureau database, that represents just a fraction of renters nationwide. In fact, nearly 100 million Americans rent, leaving lots of room for the growth of this promising means of helping people improve their credit scores.

 How Do I Know If My Property Manager or Landlord Reports to RentBureau? Ask. And if they don't, point out that the benefits are threefold It's a great way to reward good tenants. It may help deter chronically-late paying renters who know their history will now affect at least one of their credit scores. It's a great way to gain access to a database of renters that can prove invaluable in weeding out prospective renters.  

What Are the Benefits For Property Managers and Landlords to Report to RentBureau? In addition to rewarding the dependable tenants who deserve credit for on time payments, property managers and landlords who report to RentBureau also reap the benefits of having access to its extensive database of renters. In other words, it's a great way for them to screen prospective renters.

Volume

Volume, which is another factor for a person to analyze and be aware of prior to future stock purchases. People tend to think in the herd mentality; therefore, if a move occurs with heavy volume (i.e. heavy trading taking place whether it is up or down) this would serve as a clue that it (i.e. the herd) knows something or thinks something is about to occur, or has just occurred. Paying attention to volume lets you confirm your stock trading decision on whether you should be buying or whether you should be watching and waiting for further decline in price in the security you are looking to purchase. It should be noted that there are two types of volume: positive volume and negative volume. Also keep in mind that the names are misleading. According to tradingsolutions.com, the Negative Volume Index is based on the theory that informed investors are trading on days of lower volume, while the uninformed crowd is participating on days of higher volume. This theory coincides with the Positive Volume Index, which tracks changes on higher volume days. The positive Volume Index follows the “less informed” crowd, and the Negative Volume Index follows the "smart money" crowd. Keep in mind that these two indicators are not completely polar indices. Just because the Negative Volume Index is up, does not mean the Positive Volume Index will be down; they are just designed to theoretically track dissimilar segments of the trading community.

The question might arise, “How do I use this information to make money?” According to tradingsolutions.com, The Negative Volume Index is typically compared against a one-year exponential moving average of its value. When the index increases above the Exponential Moving Average (EMA), informed investors have typically been buying this security, indicating the prices should continue to increase. When the index decreases below this value, informed investors have typically been selling, indicating a possible decline. Therefore, when studying a chart of a particular stock, if the Negative Volume Index rises above the one year Exponential Moving Average (EMA), this would be considered a buy signal opportunity; case in point, “smart money” has just entered the arena and “less informed” money chases “smart money”, possibly leading the way for an increase in stock value. One does not have to take my word for it. According to Norman G. Fosback, in "Stock Market Logic" based on back-testing against broad-market indices, a bull market (optimistic stock rally) was in progress during an upward crossing of the Negative Volume Index with the Exponential Moving Average (EMA) 96% of the time. Magee states, “The fundamental premise of technical analysis is that it is possible to identify and predict the continuations and turning points in market trends, to evaluate relative strength or weakness in the market, and to profit from the application of that analysis” (pg.4).

Stochastics

Stochastic, according to Magee, is “the relating of the closing price to the range in prices for a prior time period, usually 21 days.” Magee goes on further to say that the idea of stochastic is based on the observation or belief that in rising markets, closing prices have a tendency to cluster near the top of the range, and the reverse being true in down trending markets as well; in sinking markets, closing prices tend to cluster near the bottom. The 21- day stochastic relates today’s close to the price range from the previous 21- day period. The price range is the difference between the highest price and the lowest price. Stochastic is expressed as a percentage, and the point is plotted on a scale from 0 to 100. Above 80% is considered as overbought, and below 20% is believed to be oversold (95).