Have you ever wondered what tradelines are and how you can make some quick bucks off your account? Well, then you are in the right place! For those who have good credit scores can take advantage and make money by selling a tradeline to an authorized user. This technique is called piggybacking, where a person buys a spot on your account to improve his or her credit score for getting loan approval. A win/win situation for both the buyer and seller of a tradeline!
What are Tradelines?
Addressing the question first – in simplest terms, tradeline is the term used by money lenders and borrowers that denotes the credit activity that you do on your account.
You can have individual credit cards and loan payments standing on your accounts. How much loan you have, how consistent you are in paying the installments, how often you take loans, etc. everything is reported to the credit reporting agency that reflects on your credit score. Your payment history and account activity helps the money lender to understand the credit behavior, which helps them decide on what rate to approve a loan if you ask.
A person who maintains his account by regularly paying loans on time, clearing credits, and is smartly using his account for business or personal needs, will have a high credit score. The higher you raise the score, the less will be the interest rate for the loan that you are seeking. Also, the approval and denial of the loan depend a lot on the credit score that one has, and that is why people are now “piggybacking” to increase their credit score by taking advantage of someone else’s good credit history.
What is the benefit? If you sell your tradeline to an authorized user, you get to earn some extra dollars by doing nothing. Literally nothing!
How do tradelines work?
To understand the concept, it’s simple and easy! Your account can have multiple cards and individual accounts listed. How many credit cards you have linked will reflect on the primary account that you hold.
Linking individual accounts to your primary account also means that you will be linking those accounts credit history as well. It will reflect on the overall score of your main account.
It is necessary to maintain credits for the primary account to reflect a good credit score. How well you pay off your debts to regulate the credit score is the key, which will help you to sell a tradeline to make the most out of your business. If you have an old primary account, that will benefit you even more because you will have a higher credit limit. It is a way of establishing trust in the eyes of the companies and banks who issue loans.
If you are punctual on paying the payments and do not wait for the deadline or the loan amount to stay stand by for too long, you will have chances of increasing your credit limit that the banks will offer you.
So now that we have settled the above let’s address how tradelines will work in your favor. Think from the buyer’s perspective. A person wants to apply for a loan but has a poor credit score. The lender will probably disapprove of the loan due to the poor credit score. In such a case, a person would likely want to buy a tradeline that will help boost the credit score.
Here is when you come to the play. You hold an account which has an excellent credit score. You will link this person’s account in your primary account and get paid in return for linking their account. When the account is linked, the person will piggyback on your credit limit as it will show the lender that this person has enough credit limit on his account to get the loan approval. Is it legal? Totally!
Now you may think that the person you add can withdraw or use your account for getting money. No he or she cannot! To get or take out money, he will have to provide the sensitive information and details of your account that he or she can never have. The person you sell your tradeline to will have no control of your account at any time.
Once you link the account, you can remove in 2 to 3 months, which would be enough time for the person to improve his credit score.
How long do tradelines work?
It is hard to say how long will a tradeline that you purchased will work for you. It can stay in your credit history for years whereas can fall off too in as little as 2 months of time. A lot depends on the statements that banks report to the credit reporting agencies for a tradeline to show up on your credit account. If you miss out on the last date of the statement, you will have to wait for another 30 days for the bank to again send the statement that will make the tradeline to finally show after the second cycle on missing upon the first.
But, nonetheless buying tradelines is an effective way of improving the credit score that will reflect on your account in the future as well. There is nothing to lose, so you might as well want to take the long term benefits of buying a tradeline.
For sellers, they will probably strike the account off in some 2 to 3 months of the period, after you buy one from them. But, there is nothing to worry about as such. As we said, the tradelines can work for quite many years still showing on your bank statements. A little chink in the armor that one gets to take the benefit of in a gentle way.
Can Tradelines Increase Credit?
Of course, yes! If not, there wouldn’t be so many companies out there trying to sell tradeline, or it would be illegal to do so. Many banks approve selling tradelines up to two authorized users at most where some don’t mind at all. It depends on the policies of the bank you get an account with which you must talk about before applying for an account with them if selling tradelines in the future is on your mind.
A good tradeline can offer a buyer credit score boost for up to 750 or higher points in no time. It depends on the tradeline company you choose as a good company will have tradelines with high credit scores that can help you boost your credit score in return.
A reliable tradeline company will have sellers that bear a substantially high credit score. It gives the buyer the benefit of purchasing reliable tradelines, ensuring a good credit score boost solving their purpose of getting that loan approval quickly.
Do tradelines help with mortgage?
To get a mortgage approval, buying tradelines substantially helps in increasing the credit score where the lender can readily approve the loan for a mortgage. The effect of a good tradeline will show on your credit report that will improve the credit score positively getting cleared off the drop in a score that you preciously incurred. It is a good strategy to apply for a mortgage loan if you chose to buy for a tradeline from a trusted service.
To wrap it up!
Prioritizing your tradelines can help you sell them and make a business out of it. You can earn up to $500 to $2000, on an average every month. If you have a good credit history and an incredible credit score, why let it go to waste? Sell them on trusted online platforms and start making money quickly.