Can You Rent a Credit Score?

I came across a surprising blog post this afternoon. According to Bob Brooks, who is the host of the radio show "Prudent Money" in Dallas, Texas, people who are looking to improve their credit score can borrow credit history from someone with good credit.

An Internet company, not named in Brooks’ post, can increase your credit score by making you an authorized person on someone else’s credit card -- usually an individual with excellent credit history. When you become an authorized user on a credit card belonging to a person with a high credit score, that person’s credit history will eventually be transferred to your credit file.

Why would someone ever allow this company to add authorized users to their credit card?

When I first started reading the post, this question quickly popped into my head. I began to think about all of the negative reasons why a person should never do this. But as I read further, I confirmed my initial suspicions. Money -- the one thing that consistently motivates people – is the driving factor for this operation. According to Brooks, “There is big dollars in it for people who are willing to allow this company to use their credits cards by adding authorized users.” The company, run by Adam Wheeler, reportedly offers an exorbitant amount of money to people with strong credit scores in order to allow an authorized user on to their credit cards.

I need to do more research on this subject, but I remain very skeptical about this rent-a-credit technique. To be honest, the operation seems extremely shady to me. The Federal Trade Commission is currently investigating this, but as of right now, there hasn’t been any legal action taken against the company.

Essentially, the company helps people lie to credit lenders, which is very unethical in my eyes. And apparently, the Nevada Mortgage Lending Division agrees.

Per Mr. Brooks:

"However, the Nevada Mortgage Lending Division states that anyone associated with this scheme “will be subject to administrative action and potential criminal penalties.

Adam Wheeler who runs this unethical scheme states his business is “legal” but he conceded that “some people might say it’s unethical.” He also said he does not “condone fraud against mortgage institutions.” If clients are going to lie to lenders, he says, “that is not good."

I predict that this practice will have a short life span. Most likely, new legislation and legal repercussions for doing this will halt the operation quickly.

And for anyone ever considering renting a credit score, I would highly recommend against it. If lenders ever find out about you doing this, this will be used against you in all future credit, loan, or mortgage applications.

As it is in every facet of life, there is no get-rich-quick scheme or shortcut when it comes to having good credit. From your credit score to golf game, there is only one way to improve -- through hard work. I sound like a grandfather when I say that, but from my personal experience, that statement has always proven to be true. In this instance, improving your credit score, hard work translates into being smart with your credit. The best way to improve a credit score is to consistently pay back all of your credit card, loan, or mortgage bills on time.

For a full list of ways to improve your credit score without having to rent another person’s credit history, click here.