Credit reporting firms refer to a tradeline as any credit account that appears on your credit report. When an individual with a strong credit score adds you as an authorized user of any of their tradelines, such as a credit card, you get to enjoy the same advantages of good credit history that they do.
Today, selling authorized tradelines is a lucrative business. Is the financial gain, however, worth the potential consequences? That is the most crucial question you must answer before becoming a tradeline salesperson.
To that inquiry, the emphatic answer is a loud no! Selling approved tradelines may get you into a lot of problems that you probably do not know yet. However, if you are the one on the other end of the rope looking to build your credit, then you’re better off seeking the services of a site selling seasoned tradelines.
What Is Involved In The Process Of Selling Tradelines?
Whenever you sell your tradelines by allowing others to use your credit card accounts, you’re letting outsiders ride on your excellent credit score. To sell tradelines, you must first have a strong credit score, preferably 700 or above, since no one wants to ride on poor credit.
On tradelines, what you earn may vary from what another person earns. If you have several credit accounts, you may earn much more. With that in mind, the next step would be to locate a broker who can connect you with customers.
Thanks to the many credit repair businesses, the network of vendors and purchasers is so extensive in this industry. Here are five reasons why you should never sell your approved tradelines to someone you don’t know or an authorized tradelines company.
- Selling Your Tradelines Could Be a Violation of Your Credit Card Terms of Service.
Selling your tradelines to a stranger could violate the terms you had with your credit card company, at least according to CreditCards.com.
You are only allowed to assign your spouse, kids, or a domestic partner the right to use your card for payment. According to Discover’s cardholder terms, you must get their written permission before selling, transferring, or assigning your account to any stranger.
- Your Account Can Be Closed Because of Selling Your Tradelines.
Tradeline abuse is monitored closely nowadays by banks. A bank’s risk department will scan through accounts and flag the ones with more than 4-6 authorized users.
As soon as you surpass the threshold and your account gets under the radar, the chances are that the financial services provider will permanently shut your account down. Whenever an old credit card account is closed, it shortens one’s credit history and negatively impacts its credit score.
Further, reports of your closed credit card accounts are maintained on a credit card report for a decade from the date of your last activity by credit reporting agencies.
- Tradelines Sales can Qualify as Synthetic Identity Theft.
The chances of you aiding the legitimacy of a fake synthetic identity are very high whenever you sell an authorized tradeline. Agencies that assist in repairing credits follow a well-articulated process to create synthetic identities.
Their final procedure is to buy tradelines and unnaturally boost the fake identity score. Selling an authorized tradeline is a “criminal perpetrate a criminal” kind of offense.
- Fraudsters and Fraud Rings Can Easily Be Associated With Your Address When You Sell Tradelines
Most individuals are unaware that their addresses become synonymous with a stranger as soon as they add an authorized user to their accounts. Since the card issuer is obligated to report the authorized tradeline to the bureau and provide their addresses, your address will be on public record, especially when synthetic identities are involved.
For instance, authorities recently inked 650 individual identities to one address in Texas. The resident of that home must have allegedly been selling tradelines for several years. Their home became a part of a criminal component because many of those identities were synthetic.
- The chances Are That Fraudsters Might Scam You, Or You Could Become a Victim Of Fraud.
Some credit repair companies are capable of devious behaviors. You must expect to run into trouble whenever you deal with such types of companies. One major problem with some credit repair companies is that they aid in producing so many fake identities and then use your excellent credit to make the fake identities pass for good credit.
If you think about it, isn’t it convenient that a company assisting individuals create synthetic identifications will most likely be dishonest with you? Avoid selling your authorized tradelines by any means. You should also not associate with any company that incessantly persuades you to sell them tradelines.