Good credit is essential for those who want the better things in life, such as a home or a new car. If you are one of many with less-than-stellar credit, you may still be able to buy these things, but at a higher price because you’ll have to pay a higher interest rate. For some with bad credit, these things may be out of reach altogether.
One option for improving your credit score is buying tradelines, which is essentially purchasing another person’s good credit history. You may have heard several rumors about this practice, including whether or not it is legal. We assure you that, not only is it legal and ethical, buying tradelines can be a quicker method of giving your credit score a makeover. We’ll shed some light on this practice and bust some of the more significant myths about tradelines below.
What Are Some of These Myths?
First, you should know that a tradeline is any loan or credit account that shows up on a credit report. You may have credit cards, including store cards, car loans, and other accounts on your report. When you are added as an authorized user to someone else’s tradeline, you gain the benefit of that person’s good credit history. Now, on to the myths:
- Buying Tradelines is Illegal: FICO tried to eliminate the practice in 2008, but Congress found that doing so would violate the Equal Credit Opportunity Act, a law that protects consumers from credit discrimination. The tradeline practice is alive and well today, and in use throughout the banking industry.
- Get Tradelines That Were Opened After You Turned 18: Tradelines work in the same manner as when a spouse adds a partner or parents add children to their credit card accounts. In all of these cases, the added person gains a credit history, no matter their age. Obtaining an authorized user account opened before you turned 18 is a valid purchase with similar results.
- Tradelines Are a Short-Term Fix: In most cases, the tradeline shows as an open account for two reporting cycles only. Although it shows as a closed account after those cycles, it remains part of your credit history and can be used to boost your overall score.
- They Cost Too Much: Historically used only by the wealthy, today’s tradelines are much more affordable. Coast Tradelines offers tradelines at a range of prices, based on credit limit and when the account was first opened.
- Tradelines Replace the Need for Credit Repair: Credit repair are different methods aimed at improving your score. While repair aims to remove reporting errors and update information, tradelines add positive information. The two methods can be used together in many cases.
- Credit Limit Carries More Weight Than Age: Depending on why you want to improve your credit score, the age of the account may be more important than the credit limit in many cases. Because a larger age shows a longer credit history, it can be more advantageous to seek a tradeline with more age.
You may also have heard that a primary tradeline works better than an authorized user account at boosting your score. That is not necessarily true. Of course, opening a primary tradeline of your own should be a priority, but how you get there is the key. A new, primary account by nature has no age or history and a low credit limit as well. An authorized user account has both age and history, and a much higher limit; it can go further in giving you a better-looking score.
Is Using Tradelines Unethical?
There are many methods consumers can use to improve their credit score, including correcting errors, paying off old debts and taking out new loans as well. Using a tradeline is another legitimate practice that can be used for the same results. It can be said that this method provides many with a more level playing field by helping them take advantage of the benefits of having good credit.
We Can Help You Meet Your Goals
When considering the best strategy for boosting your credit score, you should consult an industry professional. At Coast Tradelines, we take into account your goals, whether that includes buying a home, starting or expanding a business, or qualifying for auto financing. When we know your goals, we’ll help guide your tradeline purchase to reach the intended outcome. We also offer a low-price guarantee with price-matching, so you can shop with confidence.