In today’s financial world, building a solid credit profile is essential for personal and business success. One common strategy for improving credit is through tradelines. More specifically, buying authorized user tradelines can help boost your credit score. But what exactly does it mean to buy authorized user tradelines, and how does the process work? If you’re new to the concept, this guide will walk you through the essentials.
What is an Authorized User Tradeline?
An authorized user tradeline is a credit account where a primary cardholder adds another person (the authorized user) to their account. The authorized user is allowed to use the credit card, but they are not legally responsible for the debt. The primary advantage for the authorized user is that the account’s positive payment history is reflected on their credit report, potentially improving their credit score.
For instance, if someone with a long-standing, well-maintained credit card adds you as an authorized user, the credit history associated with that card could help enhance your credit profile.
Why Would You Buy Authorized User Tradelines?
Authorized user tradelines offer an opportunity to quickly improve your credit score, especially if you’re looking to qualify for a loan, mortgage, or credit card. Here are the key reasons people opt to buy authorized user tradelines:
- Fast Credit Score Boost: Traditional methods of building credit, like applying for credit cards or loans, can take time. Buying authorized user tradelines allows you to potentially see a boost in your credit score within a couple of months.
- Increase Credit Age: The age of your credit accounts is one of the significant factors that impact your credit score. Buying a tradeline with a long, positive history can increase your average credit age.
- Reduce Credit Utilization: By being added as an authorized user on an account with a low credit utilization ratio, you can lower your overall utilization, positively affecting your score.
- Qualify for Better Financial Products: With an improved credit score, you can qualify for better interest rates, credit cards, and loans. This opens doors to financial opportunities that might have been out of reach before.
How to Buy Authorized User Tradelines
Now that you understand the benefits of authorized user tradelines, let’s explore how to go about buying them.
- Research Tradeline Companies
Start by researching reputable companies that offer authorized user tradelines. It’s essential to work with a legitimate business that follows industry standards and has a proven track record. Many companies specialize in connecting you with credit cardholders willing to add you as an authorized user for a fee. Examples include Tradeline Supply Company and Boost Credit 101. - Select the Right Tradeline
When selecting a tradeline, it’s important to consider the following factors:- Credit Limit: Higher credit limits can help reduce your overall credit utilization ratio.
- Age of the Account: Older tradelines are more beneficial because they add a longer credit history to your report.
- Payment History: Ensure the tradeline has a flawless payment history with no missed or late payments.
Once you’ve selected a company and a tradeline, you’ll pay a fee to be added as an authorized user to the account.
- Know the Duration of Your Stay on the Account
The time frame for which you remain an authorized user varies from company to company, but it typically ranges from 30 to 60 days. During this period, the tradeline will appear on your credit report, helping to boost your score. - Monitor Your Credit Report
After being added as an authorized user, keep an eye on your credit report to ensure the tradeline appears. You can use free credit monitoring services or websites like Credit Karma to track your score. - Use the Tradeline to Your Advantage
Once your credit score improves, take advantage of the higher score by applying for better credit cards or loans with favorable interest rates. It’s also wise to continue practicing good credit habits, such as paying bills on time and keeping credit utilization low.
Risks of Buying Authorized User Tradelines
While buying authorized user tradelines offers many benefits, it also comes with potential risks that you should consider before making a purchase:
- Temporary Credit Boost
The boost in your credit score is often temporary, as tradelines typically stay on your report for only a limited time. After your removal from the account, your score may decrease. - Cost
Buying authorized user tradelines can be expensive. Prices vary based on the quality and age of the tradeline, with costs ranging from a few hundred to a few thousand dollars. Make sure the investment aligns with your financial goals. - Ethical Concerns
Some view the practice of buying tradelines as a loophole in the credit system. While it is legal, it’s important to understand that some lenders may frown upon using this method, especially if they view it as manipulating your credit score. - Fraudulent Companies
Be wary of scams and fraudulent companies when buying tradelines. Always do thorough research, check reviews, and work with established businesses to avoid getting duped.
Is Buying Authorized User Tradelines Right for You?
Buying authorized user tradelines may be right for you if:
- You have a short credit history or poor credit score, and need a quick boost to meet certain financial goals.
- You’re planning to apply for a loan, mortgage, or credit card in the near future.
- You understand the costs, risks, and temporary nature of the score increase, and are prepared to use the improved credit to secure better financial opportunities.
However, if you’re looking for long-term credit improvement, you might want to consider other strategies like building your credit through responsible credit card use, paying bills on time, and reducing debt.
Alternatives to Buying Authorized User Tradelines
If buying authorized user tradelines seems risky or too expensive, there are alternative ways to improve your credit score:
- Become an Authorized User for Free
Instead of buying a tradeline, ask a friend or family member with good credit to add you as an authorized user on their account. This way, you can enjoy the benefits without paying a fee. - Apply for a Secured Credit Card
Secured credit cards are a great way to build credit, even if you have a poor credit history. You’ll need to put down a cash deposit, but over time, responsible use can improve your score. - Credit Builder Loans
These are loans specifically designed to help people build credit. Payments are reported to the credit bureaus, and as long as you make on-time payments, your credit score will improve.
Conclusion
Buying authorized user tradelines is a fast and effective way to improve your credit score, but it’s not without its risks. If you’re considering this option, make sure to work with reputable companies, understand the costs involved, and use the tradeline strategically. Whether you’re planning to secure a mortgage, credit card, or personal loan, buying authorized user tradelines can help you reach your financial goals quicker.
