If you asked a question how you could possibly start building credit when you do not qualify for any credit card you apply for, a financial advisor would prompt you to become an authorized user, a person attached to a good credit customer's account. With access to a good credit account and permission to use it, a person could quickly boost their credit scores and give a start to their credit history.

However, some time ago, Fair Isaac Corp., detected numerous cases of abusing this practice and was determined to refuse consideration of authorized user records in calculating their credit scores.

The fraudulent use, know as Piggybacking, was a smartly organized business of illegally selling good credit accounts to customers with limited or damaged credit.

As a result of this trick, a person with bad credit records could easily and quickly restore access to best credit card applications on the market for a certain price. Fair Isaac Corp., the creator of the FICO credit scoring model, was quite dissatisfied with suchlike developments because in fact they did not ensure improved credit behavior and responsibility of the authorized user.

Having paid to be added to a good or excellent credit account, the authorized user might never see the card itself, let alone performing operations with it. Fair Isaac Corp. then wonders what that person does actually to achieve or improve his/her payment records and prove the creditworthiness which gives the necessary qualifications for some of the cheapest extended credit lines.

A bank or credit company will never know that the user never stirred a finger to possess the reliable credit records they provide. The creditor will not hesitate then to offer credit lines that the authorized user would never be approved for otherwise.

What is all this risk for, especially when credit delinquencies and bankruptcy rates are rising and credit companies enduring substantial loses of revenues?

Considering it, Fair Isaac Corp. mad e a step towards eliminating the risk posed by such fraudulent authorized users. The companies that purchased access to good credit accounts and resold it to bad credit customers could still exist but the authorized user trade lines were not be included into the computing of credit scores and thus, could not improve one's credit rating.

This was planned to the new credit score requirement for all the major credit bureaus until a core of sense got its way. The permission to be an authorized user was a great benefit to students or young people who did not qualify for standard unsecured credit cards with low credit rates and no fees. Usually, their parents or close relatives attached them to their good credit accounts, allowed them to use the card and pay the bills, which improved their credit rating.

Lots of people looking to build credit honestly benefited from authorized user trade lines in their credit reports, so it would perhaps be cruel to deprive them of this relatively easy and safe way to their own credit history.

Fair Isaac Corp. changed its plan and continued including authorized user records in calculating credit scores. But to minimize the risk, they devised a new technology able to detect fraudulent authorized users. How exactly the technology works has not been revealed but it promises to be effective, otherwise Fair Isaac Corp. would not involve all the credit bureaus into implementing it.

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