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 h...
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