Remember when your dad would give you piggyback rides? Dad may have extended the favor by also letting you piggyback on his credit score. For many college students, it’s a way to start their own credit history and qualify for loans. Well, piggybacking is no longer allowed. According to the St. Paul Pioneer Press (“Getting College Credit,” Aug. 15, 2007), Fair Isaac Corporation (FICO), the credit guru that determines credit score standards, is changing the rules.
While potential borrowers will no longer be able to use someone else’s history, FICO is introducing new methods of gauging the credit score of those who have no history. While not the traditional credit score system, the new method will include such things as your cell phone payment history, how often you dip into overdraft protection, and even DVD club payment history (so you may want to ask yourself if you’ve been nice to Netflix).