Ever wondered what that account on your credit report is? It is the history of your credit. When you apply for a loan, the lender checks your credit history to ensure you can make payments if approved. Well, to cut it short, that’s a tradeline! This can include any bill you pay, credit card accounts, loans, mortgages, auto loans, and more. These tradelines will all show up on your credit report.
Becoming an authorized user on someone else’s credit card can be a great way to get your credit rating started. And, it may sound risky, but many people with poor credit are happy to buy other people’s tradelines. That is, people pay others to be added as authorized users on their credit cards. And not to use the card, just for the other person’s reputed card to show up in their own credit report.
Whether you are new to this and have no clue what a tradeline is or someone who wants to gain better insights about tradelines, you have landed at the right place. Let’s begin!
I briefly introduced tradelines in a previous post.
What is a Tradeline?
A tradeline is an account that appears on your credit report. This includes loans, credit cards, utilities, cell phones, mortgages, auto leases, and more.
A tradeline is the credit information provided by a consumer’s credit report to a company that is considering extending credit to the consumer. A tradeline contains information for the account, including the type of account, date opened, balance, outstanding balance, monthly payment amount, interest rate, and any payment histories. The tradeline may also contain other information about the account holder if available.
Tradelines are often seen in person at retail checkout counters or when applying for a loan at a bank or other financial institution. When you are looking for a loan or mortgage the lender will do a credit check against all of your tradelines to determine what type of interest rate they are willing to give you.
Why Would Someone Want to Buy a Tradeline?
A tradeline is a line of credit that is issued based on a person’s credit and can be used to make cash advances and purchase goods.
Tradelines are seen as a more stable form of borrowing money than payday loans because the person does not have to worry about paying for the expenses back right away.
People with low credit scores or who have had bad luck in the past, such as excessive medical bills or court fees, may find it difficult to get approved for loans in general. These people can use tradelines with good payback rates and without high monthly payments to buy what they need in life.
Personal credit history is a reflection of your financial stability and there is no other way you can accumulate a good credit history.
Factors such as timely repayments, low balances and loans, low debt ratios, and trend lines all play a role in the decision process. And likewise, optimizing these factors can help you achieve an even higher rating. And an 850 is about as high as one can get i.e., the perfect score.
How can Being an Authorized User Help You?
There are two ways that an authorized user purchase could help you. The first is if the primary cardholder has a longer history of making payments on time, which will likely increase their rating. The second is if the primary cardholder has a high-limit credit card with much lower interest rates, which will also likely increase their rating.
When a person pays to be an authorized user on someone else’s credit card, the account remains in the name of the primary account holder. The authorized user has no legal rights to the funds or credit line.
This is one of the ways that you can pay off your debt or get an instant loan without actually borrowing money from a financial institution. However, you should be careful because this could lead to fraud and identity theft.
What if I Currently Have Bad Credit?
With more than one in five Americans experiencing some form of credit problem, repairing credit is more important than ever.
The process involved in fixing your bad credit will be the same as establishing good credit for the first time. The only difference is that you’ll be able to take full advantage of the rewards that come with having good credit.
The rebuilding process can take anywhere from a few months to a decade.
It’s going to take you much longer to rebuild your credit than it took you to build it in the first place. This is because every “negative item” on your credit report will stay there for seven years, and there are typically at least four negative items on your credit report from when you were rebuilding your credit.
The first thing you should do is choose a card that offers a low-interest rate on purchases, a low annual fee, and no annual fee on balance transfers. Then follow these tips to avoid paying high-interest rates:
- Pay your monthly bill in full by the due date
- Use your card only for emergencies or big-ticket items
- Don’t have more than one card open at a time
Bottom Line
We provide you with the best-authorized tradeline, which means you can easily become a user on an individual’s credit card. You then get authorization of user status on your credit report.
Shameless plug
If you are not convinced by any of those options you can always buy my tradelines on eBay here. [2022 Edit] I am now selling the tradelines on this very site here. If you want to sell your tradelines here please contact me.
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