19 Nov 2023

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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.

superior tradelines add tradelines to credit report

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.

convert utility bills to tradelines

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).

example of joint account holder application

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.

applying for credit to add tradelines to credit report

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

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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

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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

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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.

debt to credit ratio

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.

19 Nov 2023

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We get asked about buying business tradelines all the time, and the answer isn’t as simple as you might think.

BUSINESS TRADELINES… OR TRADELINES FOR BUSINESS?

business tradelines google searchBefore we get started, let’s clear one thing up – we are not here to try and sell you business tradelines. People tend to be somewhat misguided about this topic, so we feel it’s important to clear up common misconceptions about the practice. Our goal is to help get you pointed in a better direction that will help you reach your goals with far less risk and hassle.

The short answer is no – you can’t buy tradelines for your business. Business tradelines are different from personal tradelines. You can, however, buy authorized user tradelines to boost your personal credit score, in order to get in a better position to guarantee a business credit card.

This is probably going to be the most direct way to achieve your goals. You can’t circumnavigate a poor personal credit score by using your business credit line. If you’re looking to secure business lines of credit for loans or funding, there are better ways than purchasing business tradelines.

WHAT IS A TRADELINE?

federal board of reserve discusses tradelinesTradelines, in the most general terms possible, are accounts in your credit report. “Tradeline” means “account”, and businesses have “accounts”, so yes, technically businesses have “tradelines.” They can also refer to the various accounts on your personal credit reports.

Ever since the Equal Credit Opportunity Act passed in 1974, people have been able to buy authorized user tradelines, or seasoned tradelines. This is to boost their personal credit score by becoming an authorized user on someone else’s credit card with a good credit history and better credit score than them.

That person – with the higher credit score – is called the primary account holder. Any activity on their account affects the authorized user’s personal credit scores, for better or for worse.

This is why it’s so important to procure tradelines through a professional, authorized broker. Check out our article on How to Choose the Right Tradelines Company for You.

WHY WOULD SOMEONE WANT TO BUY BUSINESS TRADELINES? 

There are typically two reasons why an individual might be looking for tradelines for their business. One reason is that they are looking to get business loans and want to improve their chances of securing a loan.

But the most common reason we see is that people often think that they can circumnavigate their bad personal credit line by using the credit from their business instead.

WHY SUBSTITUTING BUSINESS CREDIT SCORE INSTEAD OF PERSONAL CREDIT SCORE DOESN’T WORK 

difference between personal and business tradelinesUnfortunately, within the scope of the law, it is very difficult to bypass your bad personal credit by simply signing up for a business credit card.

It is not possible to buy business tradelines in the same way an individual can buy authorized user tradelines. In order to apply for business credit cards in the name of the business, the individual applying will have to have sufficient credit capacity. So if you have a poor credit score, you will probably not even be able to qualify for a business credit card in the first place.

A more legitimate option would be to purchase authorized user tradelines and begin working on improving your personal credit score. Why? This is a more legitimate way to get a business line of credit based on your personal credit. By improving your personal credit score, you are in a better position to qualify for business loans and credit cards.

Really, there aren’t many legitimate options other than repairing your own personal credit. That’s not necessarily a terrible thing.

Repairing your credit will position yourself to personally guarantee a line of credit for your business. That is the best and most reliable way to achieve your financial goals.

TRADELINES FOR FUNDING, LOANS OR CREDIT CARDS

loan applicationIf you’re actually trying to build your business’s credit history by adding tradelines to your business credit report, there are companies that specialize in helping you do so. Getting bank approval for loans is extremely difficult for small businesses. There are companies that can help you establish paperwork, banking relationships, and transactions in commerce to show business credit agencies that the business is successfully operating and has a positive payment history. However, you’ll pay for the service.

Most banks do not currently lend business loans without some kind of personal guarantee. Also, businesses usually can’t get backed up without good personal credit in the first place.

Usually only huge corporations with millions of dollars in revenue, like SpaceX or Amazon, get approved. Capital requirements are usually insane, which is one of the reasons only large corporations are able to do it.

This is often counterintuitive, because the businesses that truly need the loans are the ones that are struggling, or are new and don’t have a credit line established. Occasionally, a business might be lucky enough to be able to procure an investor, but these opportunities are few and far between. It’s better to explore legitimate options, rather than go down the Google rabbit hole which can lead you into all kinds of tricky situations.

So, how else can you get a business loan? Connect with somebody with experience. This can save you a ton of time by doing things correctly. They may know tricks and techniques to help expedite the process, avoid mistakes, and be more efficient.

We recommend checking out the following experts who can get you pointed in the right direction:

jeremiah davis business funding nowJEREMIAH DAVIS – BUSINESS FUNDING NOW

www.businesfundingnow.com

This is an organization dedicated to alternative business funding. From their website, “Over 90% of business loans come from alternative lenders, not conventional banks.” If you are genuinely interested in obtaining a business loan, this is a great place to learn more information.

ty crandall credit suiteTY CRANDALL – CREDIT SUITE

www.creditsuite.com

Ty Crandall is an expert in building business credit and everything that goes along with it. We recommend checking out his website as it’s a great resource for anyone looking for more information about business credit scores or financing.

Remember, borrowing money is the opposite of making it.

If you can meet the requirements to qualify for a business loan, you probably don’t need one. It is our opinion that it is usually not is a business’s best interest to take out a loan. There are usually better options available, if you’re willing to think outside the box.

CAN’T I JUST BUY PRE-EXISTING BUSINESS LINES OF CREDIT?

This is a common misconception. You may have heard of the term “shelf corporations”. These are pre-established business entities that are left to sit on the “shelf” to age without generating any financial activity.

SHELF CORPORATIONS & ASSUMABLE ACCOUNTS

They were essentially assumable accounts where one would assume responsibility for a pre-existing line of credit through the shelf corporation. Then the people selling it to you would charge you for the service.

This is a very murky area, legally speaking. In order to do it correctly it is a very sophisticated and complicated process. That meant that it was difficult to make the process profitable, and consequently people started cutting corners. This resulted in legally compromised products, fake documents, fraudulent behavior, and so on.

The supposed benefit of shelf corporations was that you were more likely to get better Paydex scores and funding from banks, but that has proven to be untrue in the vast majority of circumstances. As a result, shelf corporations have become predominantly unnecessary. They may still exist, but there are far better options.

BEST OPTIONS FOR INCREASING BUSINESS CREDIT SCORE.

credit score breakdownAll right, so by now hopefully we’ve drilled it into your head that you can’t buy authorized user tradelines for your business in the same way you can for your personal accounts. So if you are trying to build your business credit, you are probably wondering what are my options for increasing my business score, then?

It’s important to have a good business credit score because this is how banks and lenders determine whether or not a business can be relied upon to settle its debts in a timely manner. Unfortunately, there is no exact science when it comes to raising one’s credit score, because it can be incredibly complex to determine. But there are several ways that you can help influence your credit score positively over time, or better yet, prevent it from dropping too low in the first place.

FIRST, ESTABLISH CREDIT WITH COMPANIES THAT REPORT TRADE INFORMATION. 

Like the catch 22 in personal credit, you need business credit to build business credit and you need established business credit to get business credit. One of the ways to do that is to get some kind of account that reports to business credit bureaus. For example:

  • Net30 accounts.
  • Government loans (like EDIL, PPP, SBA, etc.)
ALWAYS, ALWAYS PAY BUSINESS BILLS ON TIME.
credit card paymentOne of the most reliable ways to ever prevent your credit score from dropping in the first place (and, in fact, to make them go up) is to pay your bills on time. Think about it – the practice of lending money is incredibly risky. Just like the saying goes, don’t ever let anyone borrow anything that you wouldn’t be okay with not getting back.

Banks and lenders have made the practice of approving businesses for loans lucrative. That means taking measures to ensure that they’ll actually be paid back.

By paying your bills on time, you’re communicating that you can be trusted to hold up your end of the bargain. That means it’s more likely that banks will lend to you. A few tips to make this easier are:

  • Set up alerts and email reminders for all of your bills.
  • Sign up for auto payments whenever possible.
  • Set reminders on your phone.
  • Leave notes for yourself (if you’re old school).
DON’T BE SCARED TO CHECK YOUR CREDIT REPORT (AND BANKING STATEMENTS) REGULARLY. 

Negative activity on your personal credit report could affect your business credit score negatively. It’s important to know exactly what is on there.

It’s possible to get certain items removed from your credit report if you are able to dispute them. Communicate with credit reporting agencies if you believe you see something on your credit report that doesn’t belong there.

For example, maybe someone stole your credit card and racked up a bunch of charges. You should be able to dispute that with your credit reporting agency. However, you will have to provide proof of fraudulent activity.

OPEN MORE LINES OF CREDIT.
lines of creditCertain vendors are able to provide lines of credit to their customers. This is usually through major corporations such as Amazon, Apple, or Uline.

If you work with any of these suppliers on a regular basis, there may be benefits to opening a business credit card account with them. For example, Amazon offers 5% back on all purchases made with an Amazon card through their app. Different corporations offer different benefits for using their credit services, so think about what benefits you need the most.

Furthermore, even if you get approved for more credit than you need, not using all available credit to you is a green flag for credit reporting agencies. This shows them that you’re not strapped to your limits and are able to balance your financial demands.

On the flip side, don’t get more credit than you can handle. It’s important to be diligent about your credit accounts and having too many at once can be difficult to manage. You don’t want to end up using more credit than you can pay off.

IF YOU ARE STRUGGLING TO INCREASE YOUR BUSINESS CREDIT SCORE, WE CAN HELP.

increase business credit scoreWe know that it is far too easy to drown in the endless sea of options out there and lose sight of your goals. If you’ve researched this far, it shows that you have probably looked into every available option, but perhaps sometimes it’s best to zoom out and rethink your goals. Sometimes it may not even be in a business’s best interest to seek funding when there are other options, such as looking into generating more revenue instead, for example.

Sometimes your best option may be right in front of you without even realizing it. Talking to a professional can help streamline the process by getting you in touch with the appropriate resources to help solve your problems.

We’ve already done all the research, why not spare yourself endless hours on the internet trying to figure out what to do next by talking to one of our trusted advisors?

FREQUENTLY ASKED QUESTIONS 

1. DO BUSINESS TRADELINES EXIST?

In a sense, yes, but probably not in the way you’re thinking. Tradelines mean “accounts” and business have “accounts” so yes, technically there are business tradelines. However, they do not exist in the way authorized user tradelines exist for personal accounts.

2. CAN I PURCHASE BUSINESS TRADELINES?

No. Business tradelines do not work in the same way as personal tradelines. You can, as a substitute, purchase authorized user tradelines for your personal account and begin repairing your credit score in that way. Then you may be eligible in the future to qualify for business loans, funding, or credit cards if the banks rely on your personal credit in order to lend to your business.

3. WHAT IS THE DIFFERENCE BETWEEN BUSINESS TRADELINES AND AUTHORIZED USER TRADELINES?

A business tradeline is an account that a business would report to a credit agency such as Experian, Equifax, or Transunion. This would include things such as business credit cards or vendor accounts. Authorized user tradelines refers to the practice of becoming an authorized user on someone else’s account in order to increase your credit score. You cannot buy authorized user tradelines for businesses in the same way that you can buy authorized user tradelines for your personal credit score.

4. HOW MUCH IS IT TO BUY BUSINESS TRADELINES?

Again, you cannot buy business tradelines… However, authorized user tradelines for your personal account can run anywhere from a hundred dollars to several thousand, depending on your needs. It is best to talk to a professional consultant in order to determine the right amount of money to spend.

5. WHAT ARE SEASONED OR AUTHORIZED USER BUSINESS TRADELINES?

This is a common misconception – first of all, seasoned tradelines and authorized user tradelines are the same thing. They apply strictly to the personal side of your credit score. You cannot buy seasoned or authorized user tradelines for businesses in order to increase a business credit score. You can, however, buy them to increase your personal credit score.

6. IS IT POSSIBLE TO ESTABLISH BUSINESS CREDIT WITHOUT PERSONAL CREDIT?

Yes, it just takes forever. Banks have slammed on the breaks in terms of “business loans.” In fact, most banks won’t lend to you at all unless you have $5,000.000.00 in revenue. Contrary to this, in a way, the government does – sometimes – create programs to help fund business which “promises” the bank that the government will repay the loan if you do not. This could be a standard SBA loan, or special programs such as those that originated during Covid-19, such as EDIL, PPP, etc. Again, talking to a professional skilled and experienced in this area is your best bet.

This is why most business funding experts have focused their efforts on unsecured business lines of credit. These lines of credit are basically a credit card in the name of the company. The credit cards rely on the business owner’s (or signer’s) personal credit, rather than the business’s credit. This is the main way the business tradelines are created these days.

7. HOW MANY TRADELINES SHOULD A BUSINESS HAVE?

The Dun & Bradstreet Paydex scoring model (or DUNS number) requires at least two tradelines, and in some cases three, before your business is eligible for a credit score.

8. IS IT LEGAL TO BUY TRADELINES?

Yes, it is legal to purchase authorized user tradelines for your personal credit accounts, however, it is not possible (or legal) to buy business tradelines because it simply doesn’t work that way. Beware of anyone telling you otherwise.

9. ARE THERE BUSINESS TRADELINES WITH NO UPFRONT FEE?

No, there is no such thing as buying business tradelines, therefore, there is no such thing as buying them with no upfront fee. Typically you’ll see websites using this term as a form of “clickbait” knowing it’s what you want to hear. For example, some companies might say they offer tradelines with no upfront fee, and what they’re really saying is they’ll help you get them and then charge a fee for it later. Sneaky, sneaky!

The true way to make sure you don’t pay upfront for fees is to use an escrow system, like Credzu. Be sure to use escrow if you are going to buy anything in the personal or business credit or debt space.

10. WHERE CAN I GET A LIST OF TRADELINES FOR BUSINESS?

Business tradelines are accounts that you report to crediting agencies, such as Experian, Equifax, and Dun & Bradstreet. This could include things such as credit cards or vendor accounts.