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.
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