Is Selling Tradelines Risky? Coast Tradelines (2024)

FAQs

Is selling tradelines risky? ›

There is always a risk of bank fraud when dealing with financial transactions. In selling tradelines, if an authorized user engages in fraudulent activities. It could reflect on the primary account holder and impact their credit score.

You can earn money in minutes by selling authorized user tradelines on your credit cards. At Tradeline Supply Company, LLC, commissions generally range from around $50 – $350 per AU spot sold. The older the credit card is and the higher the credit limit, the higher the commission will be.

The amount of trade lines you purchase will determine the approximate increase in your credit score. Usually buying one trade line will increase your score 40-45 points. If you need a bigger increase you can just purchase more accounts.

If you were an authorized user and you've been removed from an account, the tradeline will be deleted from your credit report after about two months. Another scenario where you could request to have a tradeline removed is if fraud has occurred.

In addition to making up a large part of your credit reports, those tradelines provide much of the data used to create your credit score. Credit scores are designed to indicate how likely you are to repay loans and pay your bills, and lenders use them to decide whether to offer you credit and at what interest rate.

If you are looking for a loan from the Federal Housing Authority (FHA), you will need at least two open tradelines in your credit mix. Conventional loans typically necessitate having at least three tradelines.

There is no perfect number of tradelines, but if your goal is to build business credit, you will probably want to make sure your business credit report lists at least two to three accounts reporting to business credit bureaus.

Derogatory accounts need to be outweighed by positive accounts, so one's credit report should contain at least 2-3 positive tradelines for every negative account. Therefore, multiple tradelines may be necessary to balance out derogatory accounts damaging one's credit.

Tradelines Stay on Your Report for Years

Every tradeline will be included in your report for at least seven years, and possibly longer. Fortunately, positive tradelines stay longer than negative tradelines. As long as any account is open and active, the tradeline will stay on your credit report.

How can I raise my credit score 100 points overnight? ›

Payment history: Your payment history is the most important factor in your FICO^® Score^☉ , so having a credit report full of tradelines with on-time payments is crucial.

People often use tradelines for personal credit to strategically boost their credit score. For instance, positive tradelines with a history of on-time payments can elevate your creditworthiness. On the flip side, negative tradelines that indicate missed payments can have the opposite effect.

The number of accounts you have can impact your credit score. If you have too many, this makes you look like a greater risk to lenders.

As we discussed above, credit repair can be thought of as the process of removing negative information from your credit report. In contrast, tradelines add information to your credit report. A tradeline is simply any account in your credit file, so adding tradelines by definition bulks up your file.

The practice of piggybacking credit by purchasing authorized user tradelines is supported by the law, however… A tradeline company selling the tradelines could violate the Credit Repair Organization Act (CROA) by demanding upfront fees, for example.

If the tradeline had positive information that was helping your credit score, the removal could cause your scores to drop. On the flip side, it could improve your credit score if the credit card account has a high credit utilization rate or a negative payment history.

Experian warns that buying tradelines could put you in danger of committing bank fraud. If you pay money to piggyback on a stranger's credit card and then misrepresent your true creditworthiness to a lender when you borrow money, it could be a problem — especially if you later default on the loan.