Is It Legal to Buy Authorized User Tradelines?
Buying and selling authorized user tradelines has become big business in recent years. The way it works is that someone who is trying to rebuild or establish his or her credit history buys the right to be an authorized user on someone else’s credit card account. In the industry, these accounts are called authorized user tradelines. Once a person is listed as an authorized user, the account history for the authorized user tradeline will appear on the credit reports of the authorized user. Assuming the credit card account has a spotless repayment history and a low debt ratio, the credit score of the person receiving that account will likely increase. However, is it legal?
The Legal Stuff
According to Regulation B of the Equal Credit Opportunity Act of 1974, the account activity on a spouse’s authorized user tradeline must be reported by creditors to credit bureaus. Since creditors usually report information to credit bureaus on all user accounts, every authorized user will have the authorized user tradelines appear on his or her credit report. Even the current FICO score formula includes authorized user tradelines in its calculation, so by becoming an authorized user of an account with excellent credit history, your credit score is likely to increase considerably.
The Authorized User Tradelines Industry
For those who want to buy authorized user tradelines, the options are seemingly endless. There are so many companies out there offering to buy and sell authorized user tradelines. Some companies are legitimate, like www.TopTradelines.com, and others are not.
There are many reasons to buy authorized user tradelines from Top Tradelines. First of all, Top Tradelines offers what are called seasoned authorized tradelines. These are tradelines that are more than 2 years old. This is important because old authorized user tradelines boost your credit score more than young ones do. Another reason to buy authorized user tradelines from Top Tradelines, particularly its seasoned authorized tradelines, is that all its tradelines are guaranteed to have perfect repayment histories and debt ratios below 10%. These characteristics are also important to boosting your credit score.