20 Nov 2023
November 21, 2023 update:
Since we published this article, the confusion over tradelines has increased. We thought we'd update this article and republish it to bring it back into sight.
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About Matias Pintor
19 Nov 2023
If you’re looking to add trade lines to your credit report, it probably means you’re looking to improve your credit scores. And, you’re probably trying to do this for a very particular reason. For example, you’re probably trying to apply for some type of credit such as a credit card, a car loan, or a mortgage.
If this describes you, we are going to precisely answer the inquiry: how to add tradelines to credit reports.
There are about four ways to add tradelines to credit reports.
There are essentially only a few ways to add trade lines to a credit report. First, you can become an authorized user to a pre-existing line of credit that will show up on your credit report. You can convert utility bills such as your rent or Netflix subscription into a trade line that reports to your credit report. You can also become a joint account holder on someone else’s account like a friend or family. And, of course, you can apply for a new line of credit. Let’s discuss each.
1. Become an authorized user to add tradelines to your credit report.
People have credit cards in their name, right now. And by law, those people can add others as authorized users to their credit card. When this happens, the history associated with that credit card appears on your credit report.
This can have an impact on increasing your credit score.
However, it can be tough to find someone willing to add you as an authorized user. You should first start with friends and family. You should explain that you’re not asking for actual use of the card but rather looking to have the history of their car report your credit report for credit score improvement purposes.
If they are unwilling to do so, you can pay companies to have you added as an authorized user.
2. Convert utility bills to add tradelines to credit reports.
There’s a new wave of options to add tradelines to credit reports. For example, you can now convert utility bills such as rent and Netflix subscriptions to the credit reporting bureaus. This can be great for someone with a thin or blank credit file to get a jump start on your credit report.
We don’t necessarily recommend anyone in particular, but there are a lot of companies out there that do this such as Self, Identity IQ, and Experian Boost.
A quick Google search can show you a lot of options.
3. Become a joint account holder to add tradelines to credit report.
A less common way to add tradelines to a credit report is to become a joint account holder. Becoming a joint account holder is not as simple as adding someone as an authorized user. When you become a joint account holder, you’re effectively asking for an application to be approved to become an account holder along with the other primary account holder.
This is usually reserved for very close relationships, such as parents to children or spouse to spouse. This is much more sensitive than authorized users because the joint account holder has full rights and privileges as well as obligations on the account.
Despite all this, when you become an account holder as a joint account holder you’re effectively just an additional primary account holder. For that reason, the history associated with that account will show up on your report. And, if the history associated with that account is in good standing, it will positively affect your credit.
Here’s an example of Discover’s joint account holder application (which is similar to other banks).
4. Apply for credit to add tradelines to credit report.
Lastly, the most obvious way to add trade lines to a credit report is to apply for credit. Clearly, this is a cart-before-the-horse situation, because people who are looking to add tradelines to a credit report are usually looking to do so. After all, they weren’t approved when they applied for a line of credit. Even so, there are ways to increase your chances of getting approved for a line of credit. One of many of the examples is using Credit Karma.
Frequently Asked Questions about adding tradelines to credit reports:
Is it legal to add tradelines?
Whether tradelines are illegal is a fact-specific question (meaning, what are you doing specifically?). Of the four methods mentioned above, none of them are illegal. However, there are some shady players in the tradeline space that credit synthetic identities and fake tradelines. In those cases, you could be breaking the law. Stick to normal practices and you should be fine.
Does adding tradelines increase credit scores?
This depends. If you become a joint account holder, the balance carried can negatively impact your debt-to-credit ratio since, in that scenario, you would be obligated for the debt. In the case of applying for new credit, typically you see an initial dip in credit score and, after you make some payments on time, your scores go up. In the case of authorized users, it depends on the nature of the line; is it in good standing with no missed payments and a high limit together with a low balance? If so, then it will likely improve your credit score.
Do tradelines still work?
This question is typically referring to the practice of piggybacking credit. The quick answer is that tradelines still work, but you can read our longer answer, here.
What are the cons of using tradelines?
The primary con is that you could add the wrong tradeline and your scores could go down. Or, worse, you could work with an unqualified company and they could take your money without recourse. So, just make sure you stay informed on tradelines and make good decisions going forward.
How much do tradelines cost?
The prices to be added as an authorized user range quite widely, but ultimately, you can expect to pay many hundreds of dollars but under a thousand dollars per tradeline. You can always ask for discounts. Everything is a negotiation, they say. So, contact an expert and find out pricing for yourself.
Conclusion.
Even though credit is confusing and it always feels like an uphill battle, there are a lot of options for those looking to add trade lines to credit reports. We’re hopeful that the tips above are helpful. Whether you’re going to become an authorized user, a joint account holder, apply for credit in your name, or convert utility payments into trade lines, we have one thing of advice: take action.
Credit seems to stay stagnant or get worse when people don’t take action. For that reason, that is our advice: take action.
19 Nov 2023
When it comes to primary tradelines, I’ll make you a deal: You listen to two quick definitions and I’ll explain something very valuable to you. By valuable, I mean it will save you a lot of time an energy. This is especially true because I believe the concept of primary tradelines is universally misunderstand. So, here goes…
What is a primary tradeline?
A primary tradeline refers to a credit account that is listed on your credit report, showcasing your payment history and account details. It is typically an account that you have opened in your own name, such as a credit card or a loan. The primary tradeline plays a crucial role in determining your creditworthiness and can significantly impact your credit score.
What is an authorized user tradeline?
An authorized user tradeline, on the other hand, is a credit account where someone grants you access to their account. This means that you are added as an authorized user and the account’s payment history and details appear on your credit report. However, you are not responsible for making payments or managing the account. This can be beneficial if the account has a long positive payment history and low credit utilization, as it may help boost your own credit score. Keep in mind that while authorized user tradelines can have some impact on your credit, they are not as influential as primary tradelines in terms of establishing creditworthiness and building your credit history from scratch.
Purchasing authorized user tradelines.
Purchasing authorized user tradelines involves buying access to someone else’s credit account as an authorized user. This is done with the intention of benefiting from the positive payment history and low credit utilization associated with that account. Some individuals or companies offer these tradelines for sale to those who want to improve their credit score quickly.
Primary Tradelines vs Authorized user tradelines.
Because you can buy authorized user tradelines to improve your credit score and because primary tradelines have a larger impact on credit scores, the idea of buying primary tradelines has emerged.
Here’s the valuable information I promised you: You cannot legally buy primary tradelines.
Although this is true, there is some good news: You don’t need to buy primary tradelines.
Buying authorized user accounts is known to be effective. You can buy those in order to improve your credit score and then you can apply for and establish you own primary tradelines thereafter.
Either way: Take action.
Whether you decide to purchase authorized user tradelines or work on establishing your own primary tradelines, the key is to take action. Don’t let your credit score hold you back from achieving your financial goals. By actively seeking ways to improve your credit, you are taking control of your future.
If you choose to purchase authorized user tradelines, be sure to do your research and only engage with legitimate companies. Look for reputable individuals or companies that offer these services.
19 Nov 2023
In the world of auto financing, the search for “auto tradelines” has become increasingly popular. Why? Well, it all comes down to one simple goal: qualifying for an auto loan.
You see, when individuals are looking to secure an auto loan, having a solid credit history is crucial. More specifically, there are auto enhanced credit scores. Lenders want to ensure that borrowers are trustworthy and capable of making timely payments.
As such, people believe supplementing their history with auto tradelines can improve their auto enhanced credit score so as to increase their chance of securing an auto loan. This is perfectly logical, but it suffers for one problem: it’s not possible to add auto tradelines to credit report.
However, you can add authorized user tradelines (credit cards) in order to boost your credit scores. Provided you don’t have negative information in previous auto tradeline history, the authorized user tradeline can help during an auto lender’s evaluation of your credit.
If someone is selling auto tradelines, they’re simply using a word that is attractive to you in order to take your money. As far as we know, there is no way to do this. What you might want to do instead is search for authorized user tradelines.
19 Nov 2023
If you’re looking to purchase a home or make a significant investment, a good credit score is essential. It helps lenders determine your creditworthiness and can impact the interest rates and terms of your loan. In this blog, we will help you understand what tradelines are, how they impact your credit score, and the difference between mortgage and authorized user tradelines. We will also answer some common questions like, “Can you buy mortgage tradelines?” And provide tips on how to prepare for mortgage approval with enhanced credit scores.
Understanding Tradelines in Credit Reports
Credit reports contain tradelines, which are credit accounts documenting payment history, credit limits, and account status. Lenders use that information from credit bureaus like TransUnion, Equifax, and Experian to assess creditworthiness.
Types of tradelines include student loans, personal loans, lines of credit, and FHA loans.
Importance of Tradelines in Credit Reports
When considering credit reports, tradelines offer vital insights into an individual’s credit history, influencing credit scores and the loan approval process. Mortgage lenders, credit card issuers, and auto loan providers heavily rely on this information to assess creditworthiness and make informed decisions. By documenting credit history and payment patterns, tradelines play a pivotal role in representing an individual’s credit profile.
How Tradelines Impact Your Credit Score
Positive credit tradelines, like maintaining good standing, a solid payment history, and low credit utilization, play a significant role in boosting credit scores. On the other hand, negative tradelines, including late payments and high credit utilization, can have an adverse effect on credit scores. Lenders use this information to evaluate individuals’ credit profiles when considering applications for various types of credit, such as a mortgage.
Differentiating Between Mortgage and Authorized User Tradelines
In order to understand a very interesting point we are going to make below, we’d like to quickly define and explain the difference between mortgage tradelines and authorized user tradelines.
What Are Mortgage Tradelines?
Mortgage tradelines are directly linked to real estate, mortgage loans, and home ownership, providing insights into an individual’s payment history relative to those types of accounts. Mortgage tradelines are a reflection of your mortgage loans, including real estate, payment history, loan amount, and interest rate.
What Are Authorized User Tradelines?
On the other hand, authorized user tradelines involve adding a user to a credit card account, impacting the account history, FICO score, and credit utilization.
Authorized user tradelines involve adding someone as an authorized user to a credit card account. This can positively impact their credit history by reflecting the credit card account’s history, credit limit, payment history, and credit card utilization. They are often used to establish or enhance credit history for individuals with limited credit history.
While mortgage tradelines are associated with property assets, authorized user tradelines are associated with credit cards.
Can you buy mortgage tradelines?
Unfortunately, it is not possible to buy mortgage tradelines directly. However, there is an indirect way to “buy” a mortgage tradeline by assuming responsibility or becoming a joint account holder and then removing the original account holder.
But, there is no commercial practice that offers this service and primary account holders on a pre-existing mortgage are unlikely to hand their mortgage over to you.
More importantly, however, you would would NOT want to buy mortgage tradelines even if you could.
Here’s why:
Buying morrtgage tradelines could potentially kill your debt to credit ratio.
Even if you were to successfully add a mortgage tradeline to your file, it could kill your debt to credit ratio and actually bring down your score. When you get a new mortgage, you score actually drops initially because of the debt you just took on. Your credit score slowly starts to come back up after about 6 to 9 months of payment history on the mortgage note. So, it’s not a good idea to add a mortgage tradeline to your credit file.
Buying mortgage tradelines could potentially kill your purchasing power.
Piggybacking off bullet the point above… in addition to killing your debt to credit ratio, you could also kill your purchasing power.
How? Basically, if you took on a mortgage, that would come (at least on paper) with a monthly liability. Let’s say it’s a $150,000.00 mortgage. At today’s rates, for PITI, that’s about $700.00 per month. So, to an underwriter you have now subtracted $700.00 per month from your purchasing power. Again, not a good idea.
It’s not legal (in my opinion).
Most importantly, the reasons “seasoned tradelines” exists is a result of the Federal Reserve Board Reg. B and the Equal Credit Opportunity Act of 1974, which allow the addition of authorized users on revolving accounts. I know of no law that allows for someone to be an authorized user on a mortgage account (tradeline) nor the ability to assume the mortgage.
Revolving tradelines are a better option anyway.
Lastly, mortgage don’t actually help your FICO score as much as you would think. Revolving credit accounts (tradelines) affect your credit score much more than any other account. If you look at this break down of a FICO score, you will note that revolving makes up the largest portion. Mortgages would fall under installment (a much smaller portion):
Buy authorized user tradelines instead of mortgage tradelines in order to get mortgage tradelines.
We know at least three things, now. First, buying mortgage tradelines isn’t possible. Second, even if it were, it’s not a good idea. Three, buying authorized user tradelines can help you improve your credit score in order to get a mortgage.
Purchasing authorized user tradelines from trustworthy sources is necessary. Responsible use of authorized user tradelines can significantly improve your credit profile, opening up doors for various types of tradelines such as mortgages. This can ultimately contribute to preparing for mortgage approval with enhanced credit scores and improving your chances of getting a mortgage.
While purchasing authorized user tradelines is a cost-effective approach, it is crucial to avoid adding too many tradelines at once, as this could have an adverse effect on credit scores.
A higher credit score can significantly improve your chances of securing a mortgage.
Conclusion
Before incorporating tradelines, ensure a thorough comprehension of your credit report and financial position. While utilizing AU tradelines shouldn’t be the sole strategy for enhancing your credit score, it can certainly form an integral part of a comprehensive plan. By considering these aspects, you can make informed decisions about leveraging tradelines for credit improvement.