No. FICO® 08 was really just a propaganda scare tactic used by the Fair Isaac Corp to make all of us confused and uncertain. The piggybacking boosting strategy still works just like it always has; nothing has changed, nor will it ever. If by some stretch of the imagination they did in fact violate the Equal Credit Opportunity Act, and made illegal adjustments to their model, it would take years, if ever, for the new version to effectively permeate the financial industry. For example, simply because Microsoft released Windows 11 doesn’t mean that everyone in the country is going to the store tomorrow to buy the software, install it on their computer system, get it to work effectively, and then start using it. This is the same exact process that would have to be taken by every bank, credit union, credit card company, mortgage broker, car dealership, etc. in the entire country. Now knowing how it all works, you can imagine how much time you have to enjoy the benefits of our “credit renting” services…just in case.
In addition, as you can see in Regulation B of the Equal Credit Opportunity Act, and in our 2008 Press Release, it is unlawful for any lending institution to ignore credit history present in a credit report, regardless of authorized user status, or otherwise. If a bank were to reject your loan application or artificially reduce your credit score as a result of the presence of an authorized user tradeline, they would be in violation of ECOA and liable to pay out damages to you through a civil claim.
That’s the legal reason why adding an AU tradeline to your credit report will help and why the Fair Isaac Corporation (FICO®) can’t stop us. The logical reason is that over 40 million people in the United States are listed as Authorized Users on someone else’s credit card. Simply because you have one – or several – on your credit report will not raise any “red flags.” Even if the bank underwriter chose to violate the law and ignore your AU tradelines, it is literally impossible for them to physically change your credit score, because the FICO® score is a highly secretive formula that underwriters have no access to. Being that most every loan approval is based on credit scores, you would still be in a good position to acquire an approval, as long as the rest of your application meets the underwriting requirements (income, job history, etc).