The word tradeline or trade lines as it is many times referred to is a word used in the credit and lending industries. It refers to credit accounts such credit cards, installment loans, mortgages or any other account that reports to the credit bureau agencies. The tradeline as listed on the credit report will have several pieces of information that a lender will look at and may want to know when reviewing your file. This is especially true if they are trying to determine if you are to be extended a loan. The items usually listed on a tradeline are as follows - Name of the lender or creditor - Partial loan or account number - Account type – is it a mortgage, credit card, installment, collection, etc. - Responsibility – is the borrower responsible for the loan or are they an 305 Tradelines - Current Payment Status – is the borrower on time? or late?, have they been on time in the past? - Various important dates – date opened, date reported, date of last activity - Limits – what is the cardholders credit limit? - Balances – what is the current balance? - Terms – What is the monthly payment? - Comments – placeholder for client comments or other notes
An 305 Tradelines account is a credit card account which has been opened by the primary cardholder for an additional user. Adding a person as an 305 Tradelines usually but does not necessarily mean there is an extra credit card issued. Some personal information may be required in order to be added as an 305 Tradelines on an account. However the holder/owner of the account does not have to provide the user their private info if they choose not to. This account is many times reported to the credit bureaus by the issuing banks. Reporting history is subject to change according to each card issuing institution as well as the credit bureaus own internal rules and guidelines. Key factors to understand are: - The primary owner of the card does not have to give the user access to the card nor do they need to share any personal or private data. - The user may be required to provide personal and private information to the owner of the card in order to be added as an 305 Tradelines. - Limits and restrictions in reporting by institutions apply individually to each company. - The number of 305 Tradelines are usually restricted by each credit source.
Piggybacking is a credit building tactic that allow a person who is trying to build credit to “piggyback” onto the credit history of someone who already has excellent credit. This is done via the use of 305 Tradelines accounts. the person with the excellent credit history would add the person who is trying to build credit onto their credit card as an 305 Tradelines. This action alone causes the entire history of the account to be reported as a tradeline on the credit report of the person trying to build the credit. This added excellent credit history allows the person wanting to build credit to realize score improvements of 50 points or more depending on the strength of the original credit line used. Key factors to understand are: - Piggybacking is utilizing the credit of others to develop higher credit scores. - Effectiveness will be based on individual credit account you have been added to which is the age, limit, balance, and payment history of the account you are being added to. - Effectiveness will be based on individual credit account you have been added to which is the age, limit, balance, and payment history of the account you are being added to. - Quickly closing on any loans you are seeking once the score increase hits is considered a best practice. basically you use it or lose it.
Authorized user accounts work because credit bureaus report the accounts holders entire card history to the credit report of the card holder and to the credit report of the 305 Tradelines even if the 305 Tradelines has only been on the account for a few days. The reason accounts are being reported is because of Fair Isaac Company, better known as FICO has interpreted a part of the law about equal credit opportunity act to mean that the person who is the 305 Tradelines on an account must be given credit for the account history. These accounts typically rented by brokers offer monthly income payments to individuals who have an outstanding credit history. The length of the credit card file history, as well as the top limit vs. balances, maintained over time are factors which create the strength of each account. Some specific companies are recognized as better reporting sources for 305 Tradelines accounts as opposed to others. The individual card with the excellent credit history is then purchased/rented by consumers who want to receive the benefit of the tradeline reporting the excellent credit on their credit files. They do this to help them establish better loan products at more attractive rates and flexible terms. Key factors to understand are: - It is a method of purchasing highly rated credit of others to improve an individual’s credit. - Information reported may be restricted by time limits by card companies. - Improvement in scores are proportional to tradeline account and dozens of other factors. - There is a limit to how many 305 Tradelines are allowed to each card issuing company.
The first question anyone looking at authorized users should ask is whether or not they work. The answer to that depends on your specific situation. If you were asking this question before 2008 i would have said that they worked 100%. Since 2008 there have been several changes that have affected how they work. The first major change is that lenders found out about this tactic and started creating plans and processes to make sure that the customer didn’t benefit as much as they did pre 2008. Reporting Schedule The biggest change was that most lenders changed their reporting schedule. Instead of reporting these tradelines within 30 days to all 3 credit bureaus most lenders only report the tradelines to 1 bureau and in most cases take up to 3 months before they send the information to the credit bureaus. This change is okay if you are piggybacking using a friend or family members credit card. However if you are using a broker the reporting becomes to sporadic and unreliable. Length Of Time Reporting Another major change was how long the tradeline remained on your report after you were added. prior to 2008 if you were added to someone’s credit card as an authorized user and then later you were removed (as is normally the case when using a broker) the history of the tradeline would remain showing on your credit report and would be marked closed. This allowed you to benefit from the age of the account forever. Since 2008 if you are removed as an authorized user the entire history of the AU account will be removed as well. Underwriting Awareness As lenders were made aware of this tactic several of them changed their underwriting guidelines, especially when trying to get a mortgage, to specifically check and challenge an authorized user account that looked the least bit suspicious. Although these accounts still work to increase and improve your credit scores care must be taken when adding them to your account. The last thing you want to do is get yourself involved with a broker who uses accounts that have sporadic reporting or use this tactic when the lender specifically underwrites against it.
The primary user is the person who applies directly to the credit card companies. In other words the owner of the credit. The credit reporting for primary users will always be considered as a stronger source to measure individuals by credit bureau standards. Authorized users are recognized by the information which is reported to the credit bureaus by card companies but may be subject to restrictions as to how the reporting is done and length of time and history reported. The primary user reporting file will contain all history from the institutions reporting payment history, and it will more heavily be weighted as a source for scoring and determining credit decisions for those applying directly for credit. Key factors to understand are: - Primary users are considered to be the owners of credit, and their tradelines carry more weight. - uthorized user tradeline reporting may have limitations with respect to time and card issuing company. - ach tradeline may be recognized differently by institutions with which credit sought. - There is a limit to how many 305 Tradelines are allowed to each card issuing company.
An aged or seasoned tradeline is one which has been paid over several years and illustrates an excellent pattern of payment habits and small charged amounts vs. limits. A credit card company which reports several years of on time payments with no poor utilization of credit concerning high balances will serve as a much more significant source of higher credit ratings at the bureaus for both primary and authorized users. Aged or seasoned tradelines are associated with credit card institutions which are considered higher and best sources for achieving the maximum results for credit repair needs. Some exceptionally rated older tradelines may have significantly better results for credit repair than others. Key factors to understand are: - Aged tradelines represent a proven and best source of long reported credit usage. - Aged tradelines are usually accepted as the best means for credit repair utilization. - Aged tradelines are the most highly sought after segment of the authorized tradeline industry.
A seasoned tradeline is one which has been paid over a minimum of 12 months with a perfect payment record. Most experts prefer several years to illustrate an excellent pattern of payment habits and small charged amounts vs. limits. A credit card company which reports several years of on time payments with no poor utilization of credit concerning high balances will serve as a much more significant source of higher credit ratings at the bureaus for both primary and authorized users. Seasoned tradelines are associated with credit card institutions which are considered higher and best sources for achieving the maximum results for credit repair needs. Some exceptionally rated older tradelines may have significantly better results for credit repair than others. Key factors to understand are: - Seasoned tradelines represent a proven and best source of long reported credit usage. - Seasoned tradelines are usually accepted as the best means for credit repair utilization. - Seasoned tradelines are the most highly sought after segment of the authorized tradeline industry.
Pricing for authorized tradelines depends on some variables. The strength of the payment record for length of time the card company has reported the account is one factor in determining the overall value. Individual institutions have more user-friendly reporting methods which establish a longer time where the information reported to the bureau. Card companies which have the most consistent positive reporting history for authorized tradelines are a quantity which many can rely on for more consistent success with rating boosts. Larger credit lines with lower percentages of unused credit are usually directly associated with higher values. Those top credit card companies combined with a reporting history dating back several years and credit limit increases to very significant limits offer the maximum potential for fast and efficient credit score boosts on an authorized user tradeline. Key factors to understand are: - High credit limits with a very low utilization of credit percentage used vs. available. - Length of time associated with reporting from a particular institution. - User-friendly track record of the card company for consistent reporting to bureaus. - Strength in the brand name of the issuing credit card company. - Strength in the brand name of the issuing credit card company.
Authorized user tradelines are comparable to appliances or any other item which has available features, options, and reputability associated with brand names. Individual bank cards are noted to be consistent in their reporting to all of the bureaus, and those will be a factor in determining the cost. A length of time which spans several years of history being reported is associated with more boost for the credit-seeking purchaser. Branding is another factor which comes into play when assessing potential value for authorized user tradelines. As with any industry, certain brand names are more commonly recognized as more reputable compared to others. The ultimate test of any credit report is how it fares when viewed by the potential lender of the credit file being built. Individual institutions recognize and validate practices and procedures of competitors and use them to evaluate the reported history. If a credit line is $2,000 vs. $50,000, there is a significant difference in potential value. Two years of reported tradelines vs. ten-year-old ones are proportional in possible impact. Key Factor to understand are: - Prices are proportional to assessed value based upon a significant number of variables. - Prices of tradelines from consistently reporting card companies will be more expensive. - Prices from the most desirable brands of institutions will carry more costs.
Since authorized user tradelines are designed to provide fast and efficient boosts to credit seekers looking to save potentially thousands of dollars in interest on homes or cars the choice is proportional to the desired credit increase. If someone needs only 20-30 points to qualify for a loan they might be choosing differently than those needing 50 or more points. Many potential home buyers are willing to invest more to get the maximum lift possible to qualify for the very best interest rates and terms which they lock in for many years. Most experts feel the highest and best theory of operation is a model for authorized tradeline selection. Potential buyers should purchase the highest level of potential improvement within their budget and expect the best level of results. When boosts come in over 100 points compared to 20 the rates for new credit are significantly different. Key factors to understand are: - Choosing more up front cost will often be absorbed by back-end results. - Every consumer has different credit needs and no client is the same. - Often the ratio of money spent vs. interest saved from credit rising is only a small percent. - Each purchaser has a budget which is unique to their individual circumstances.
Authorized user tradelines can be purchased from tradeline brokers. Tradeline brokers are familiar with the processes and procedures involved in utilizing the tradelines as tools for credit score boosts. Many qualified and reputable sources will have a variety of prices to accommodate those who need small credit score increases all the way up to those who desire a significant improvement in score from the bureaus. Key factors to understand are: - Prices will vary based on assessed value. - More experienced brokers may be able to customize a strategy for finding the right fit. - Choosing the right broker for your needs is vital to the selection process.
Most credit cards allow you to add someone as an authorized user and most Visa/MC accounts will actually report to the credit bureaus (other revolving accounts like store credit cards do not report), Of these, only a few of them actually report to the credit bureaus on a consistent basis. For example many of the cards that report take an average of 3-6 months before they begin reporting, may only report to one credit bureau, or switch bureaus they are reporting to periodically. The reasons most lenders don’t report on a regular consistent basis is to help avoid their card being used to artificially increase someone’s credit report.
Credit card companies customarily require the date of birth and social security number to add an authorized user to an account. Some companies need only the date of birth which registers that the person meets minimum age requirements necessary to be added according to individual bank restrictions. It is not required for an actual credit card to be issued, and those adding authorized users need not exchange any other personal information other than the required minimums to fulfill the guidelines of the respective financial institution which owns the card. Key factors to understand are: - Limits of social security number and date of birth apply in most cases. - Personal information is not exchanged during the process nor consent for disclosure. - Those being added as authorized users may provide only the minimum information needed. - Third parties may obtain information from authorized users and relay them to primary owners.
The fact that an authorized user is added to an account does not appear on the primary card holder’s tradeline with the bureaus. It makes no difference to the bank whether authorized users are added or not. The institutions will just report the credit payment history of the primary on their credit file and decide based on their specific guidelines whether or not to report authorized user tradelines. Since many businesses take advantage of the authorized user option limits are typically high as to the number of them which may be added. Key factors to understand are: - The primary card holder credit file does not reflect the existence of authorized users. - Authorized user tradelines are reported separately to the Bureaus based on policy. - Many businesses use the authorized user to add employees to their accounts. - To the credit issuing bank an authorized user is only viewed as an addition to reporting.
Authorized user tradelines effect the Vantage Score 3 and the FICO score versions released up to and including the latest version 8. Vantage Score 3 takes into consideration only positively paid Authorized user accounts for rating. The FICO version of the consumer credit scoring system evaluates both positive and negative information. With the release of version 8, FICO puts more emphasis on high utilization of credit compared to overall limit than previous versions. Key factors to understand are: - FICO 8 recognizes positive and negative remarks on authorized user tradelines. - Vantage Score 3 evaluates only positively reported authorized user tradelines. - Version 8 of FICO is more sensitive to credit usage vs. limit than any previous version. - All data reporting of authorized tradelines are regulated by the card issuing bank.
Items which are published to the credit bureaus are based on guidelines established by issuing bank card companies. If there is a policy limiting the reporting of information concerning authorized user tradelines, then the institutions will not report them. If issuing banks suspect any unusual activity concerning authorized tradelines, they may simply stop publishing them, limit the length of time they are reported or report them to only one or two of the credit bureaus. The issuers of credit determine all credit reporting and although there are many fair credit laws in place, the interpretation of those rules is often left up to the court systems. Primary cardholders may call and ask that the information is posted appropriately based upon the excellent credit they have established, and this works in many cases. The card holders with stellar credit are a valuable commodity to institutions which may have had their accounts for many years and they will often listen carefully to requests of valued clients as opposed to losing them. Key factors to understand are: - Reporting authorized tradelines to the credit bureaus is controlled by the individual issuers. - Strength of the primary account holder through long standing excellent credit is powerful. - Rules and regulations are always changing for large banks to create more profits. - Governing laws and statutes about fair credit reporting are subject to interpretation.
In general lenders only allow authorized user accounts to report to the credit report only when the account is live and active for the user. This means when buying authorized users from a vendor like us there is a very high probability that the reporting will cease after about 1-2 months. The main reason this happens is because the vendor has a limited number a “slots” available of the credit card and those slots have to be reassigned to the next user. If you are seeking a more permanent or long term solutions you should consider getting an authorized user from a friend or family member.