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Buying Tradelines: All You Need to Know by Coast Tradelines

Oct 15

Buying Tradelines: All You Need to Know

Your credit score is like a key to your financial life. A good credit score can provide you with a wide range of opportunities. However, if your credit score is poor, you could be unable to take advantage of certain financial opportunities. Your credit score will determine the likelihood of you being able to get a home or auto loan and at what rates. It also determines whether you're eligible for credit cards or other crucial financial opportunities. If you've got a poor credit score then it makes lots of sense to take action to improve it. One method of improving your credit score is purchasing an authorized user tradeline. If you've heard of purchasing an authorized tradeline and wish to learn more, you have found the right website.

What is a Tradeline?

A tradeline is a solid financial account that is reflected on the credit report of the person who uses it. Usually, people who have low credit scores may solicit family members or acquaintances who have good credit scores to add them as an authorized account holder on their account. This way, the user's credit score will be able to gauge the credibility of the other's credit score as well as low utilization rates and on-time payments.

If they are unable to locate family members who could assist them in this regard and they are unable to do this, they can consider buying the tradeline. By purchasing a tradeline, they are paying to get themselves identified as an authorized user for a credit card account owned by another account. The major differences between the request of a family member and buying a tradeline is;

  • You are not aware whose credit card account you are being added to in the capacity of an authorized user.
  • You have to pay money to access this service.

Buying tradelines is a business model that is monitored by certain firms. The transaction between the buyer and seller is managed by a third party who oversees the process and pays the payment of a fee. Depending upon the score which needs to be raised, the fee could be as high as the thousands of dollars. Note that the tradeline will be visible on your credit report for a specific period. When you're listed as an authorized user on the account, it is not possible to have access to the account's credit line. Instead, you'll be able to benefit from their high credit score, which can help boost yours.

Is Buying Tradelines Legal?

The purchase of tradelines isn't illegal, however, it isn't legal either. It's a practice that's often frowned on because it's a shortcut to boosting credit scores and could be viewed as deceit from the lender's perspective. Most lenders will request the credit score of the borrower to judge the outcome of their loan. Through the purchase of tradelines, the borrower will have manipulated their low credit score, convincing the lender that they are financially disciplined and worthy.

Are There Any Actions Against Buying Tradelines?

Recent news indicates that there might be a crackdown on the purchase of tradelines. The federal government has aimed its probes into this field and is closely monitoring the sale and purchase of tradelines. myFICO is a brand new credit scoring model, has reduced the effect of buying tradelines. This means that customers might not see the speedy and desired outcome from purchasing tradelines later on.

To strengthen the enforcement of the crackdown, numerous privacy policy updates contain restrictions that prevent holders of credit card accounts. Cardholders who have credit cards also face the chance of losing access to their accounts if they are discovered to be in violation of the issuer's terms. Added to this, a case that was recently settled with BMS and Federal Trade Commission and BoostMyScore (BMS), a credit repair company, could also set the conditions for tradeline companies in years to come.

Do you think that buying a tradeline will Help your Credit Score?

If tradelines were to be legalized, it may affect buyers' credit scores. Theoretically, they improve the credit score of the buyer by utilizing three elements.

Payment History

The tradeline buyer will continue to enjoy the influence of on-time payment history as for as long as the main account user remains in the habit of paying their bills. However the tradeline buyer's account will be affected negatively if the primary account user doesn't pay on time or miss multiple payments.

Amounts Owed

Tradeline purchases are basically leveraging the reputation of financial stability of the primary user. Through leveraging the account details of the primary user, the tradeline buyer may reduce their credit utilization. Credit utilization measures the amount of credit available to be used.

To give an example, if one is able to access a credit card with a limit of $1,000 and an outstanding balance of $800, the percentage of credit usage is pegged to 90 per cent. If the customer is able to purchase a tradeline of $2,000, the account will now have a total credit limit of $3,000 with a balance of $800 the ratio of credit utilization will now be 27 percent. The new credit utilization ratio is beneficial because numerous credit experts advise that the ratio be kept below 30 %.

Length of Credit History

The more time a person has spent making use of credit, the better their score on credit. That means that those who are just beginning to use credit won't offer the most benefit to those who rent tradelines. But, the use of tradelines on accounts that have been in operation and opened for more than a decade could improve the longevity of the account that the buyer is using.

What's the Catch?

With tradelines, you have be aware that the effects are not permanent. Tradelines are beneficial only as long as you are listed as an authorized user. After the buyer is removed, they return to their previous credit score. Added to this, buying tradelines exposes buyers to the risk of cybercrime and identity thefts. In order to be added to a credit card owned by another account, you'll need to provide sensitive information like addresses, names as well as social security numbers or date of birth and others. These details can become a target for identity theft, thus leaving you with financial problems that will continue to grow.

Other methods to improve the credit rating of your client:

  • Family members and trusted friends to add you to their list of authorized users.
  • Take a credit builder loan.
  • Choose a secured credit card.

You can boost your credit score using a range of solutions; check out Coast Tradelines!


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