Piggyback can lift your credit score
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He suggests that consumers who do decide to try piggybacking read the fine print, find out if there's a money-back guarantee, frequently pull their credit report to make sure the account was reported, ask for names and contact information for previous customers of the service and don't assume that everything you read on the Web site is true.

Deborah Kennedy, whose husband is a co-owner of Instant Credit Builders, says authorized users at her company never get the card nor does it get activated. The new card comes to her home and is shredded.

Kennedy says she and her husband support eight to 10 authorized users on each of their three credit cards. She claims the thief would have to know both her and her husband's names, account numbers, Social Security numbers, dates of birth and pass codes to use the card.

Still, Kennedy says she encourages the company's cardholders to put a pass code on their account and has added a privacy guard to her account anytime there's a new user so she can receive e-mail alerts regarding activity on the account.  

Solutions
Roberts believes the three major credit bureaus should address the piggybacking technique.

"They're the ones that we look for to get content of information," Roberts says. "They're giving us information that's being manipulated. Their situation is being manipulated to enhance lenders' money."

Norm Magnuson, spokesman for the Consumer Data Industry Association, which represents consumer credit reporting associations, says only, "We are aware of the issue and are engaged in a dialogue with several lenders on it. However, that's all we can say at this point."

Terry Clemans, executive director of the National Credit Reporting Association, which represents the mortgage credit reporting industry, says that based on conversations he has had with the mortgage lending community, a consumer who is found to have used the credit programs to obtain better credit to close a mortgage loan could have that note canceled or called due for falsely misrepresenting their credit history.

Dorman says the FTC advises consumers to be very careful entering an arrangement that purports to result in improved credit scores.

"If a consumer appears to be more creditworthy than they really are, they might be able to secure a loan they cannot afford."