23 Jul 2021

This is how a typical tradeline transaction works:

1. You research a tradeline company with which you want to work.

We will discuss how to find and hire a legitimate tradeline company (or more accurately, how to avoid an illegitimate tradeline company), below.

2. You contact the tradeline company.

Sometimes it’s better to stop reading and second guessing page after page and just hop on the phone communicate with a company.

Plus, you’re never really going to figure out what you need, etc., without talking to someone.

3. You and the company discuss your credit goals (house, etc.).

This is the most important thing:

If the company you’re talking to didn’t start with your goals, they care more about taking your money than your goals.

Also, this goes for you, as well. If you’re not putting your goals first, you likely won’t achieve them. Neither you nor the company should be experimenting.

You both should be strategizing.

4. You and the company discuss your credit issues (negatives, etc.)

Just like discussing your goals and being purposeful, you need to discuss some of the derogatory information in your credit report.


Because some negative information can limit the positive impact of the tradelines or prevent tradelines from working, entirely.

This is just as important as your goals.

Think about: if the tradelines do not work, then even the “best tradeline prices” are worthless.

5. The company makes a recommendation (which tradelines).

This is usually what separates a good tradeline company from a bad tradeline company.

The recommendation of a tradeline company should make sense based on your goals and your current credit situation.

If the company with whom you’re working is shoving good deals in your face and not talking about your goals, they just want your money, not your success.

6. You sign agreements (which include rights and cancellation notices and forms).

We’re not going to go into too much detail here, but there are some legal requirements for signing Credit Service Organization agreements.

You have certain rights under certain laws, like the credit repair organizations act. In addition, the company has certain obligations under the same laws.

If you didn’t get:

    • a contract,
    • a notice of your rights
    • a cancellation form,

…well, that’s a violation of the law.

There are other things to consider, as well.

A company will ignore you if a company will ignore federal law.

7. You provide required verification documents (IDs, credit reports, proof of address, etc.)

A company that doesn’t collect your documents is likely not collecting other people’s documents either.

This means they accept those who engaged in fraud (such as credit profile numbers, etc.).

If they’re working with fraudsters, they’re likely fraudsters themselves and you will be associated with fraudsters.

Obtaining verification documents is a sign of a legitimate company.

You must provide copies of your license or state issued ID, credit reports, proof of address, copies of your Social Security card front and back, etc.

8. You purchase the tradelines (which includes placing money in trust, not the company’s bank account).

Typically, you will fund a trust account and you will not pay the company up front.

The company is entitled to the money in the trust account if the services are completed. Until then, you can cancel the contract during the statutory cancellation period, which is usually 3 days.

Also, if the company doesn’t perform, you can request a refund or, in some cases, ask for the service to be performed again at no additional cost. That’s the goal, anyway.

However, the way a company transacts with you is very important and can expose whether or not they are legitimate.

9. Complete the services.

While the services are pending, you can stay in contact with a company and ask them questions along the way.

A legitimate company will be happy to answer your questions.

A company that goes dark and stops communicating with you is a very bad sign. Once the services are complete, the tradeline will appear on your credit report.

Then, you will have a new credit score at that moment in time.

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