Piggybackers need to find a different "ride" to a better credit score.

In the past, the fastest way for some individuals to establish credit was to borrow--or piggyback on--someone else's good credit record. The borrower was added as an authorized or joint user to a credit card owned by someone with a high credit score.

What are the piggyback benefits to the borrower? Pay the bill on time, and the account becomes part of the borrower's credit history, adding positive information. The person with good credit, though, assumes the risk of making payments if the borrower--or piggybacker--can't afford to pay.

Now, piggybacking is no longer an option to secure a better credit score. In June 2007, Fair Isaac Company (FICO) announced it was pulling the rug out from under piggybackers and will ignore authorized user accounts when calculating FICO credit risk scores. This will protect the reliability and accuracy of FICO scores, and protect lenders from deceptive practices that fraudulently misrepresent consumer credit histories for profit.

To establish a good credit history, consider these options:

• Open a checking/share draft and share savings account at Direct Federal.
  
• Put utilities and rent in your name, and pay on time.
  
• Apply for a department store or gasoline card, and pay them off monthly.
   
• Apply for a small loan or line of credit from Direct Federal. Charge and pay on time.

Bottom line: Before you borrow, make sure you have the basics in place: a budget, a system to track your spending, and an emergency fund as backup. Once you get any form of credit, be diligent about paying it off responsibly--and on time.