Selling tradelines has been described as a passive income generator, capable of producing $1,000 per hour. However, it is necessary to understand the realities of that description. You cannot spend eight hours per day assigning authorized users on your credit cards because that will get your accounts shut down. Therefore, the $1,000 per hour statement is more about cumulative gains rather than realistic daily goals, which is why we discourage such a description. That being said, selling tradelines is a potentially lucrative investment, as long as you have the right selling partner, but to establish such a relationship, you must understand the different roles in the partnership.
Understand Your Role
You must understand that not everyone will qualify to sell tradelines; there are prerequisites to entering such an agreement. First, you must have a clean credit history with no delinquencies. The whole reason people use tradelines is to improve their credit by attaching themselves to others with better histories. Second, you must choose a tradeline broker. The broker is who you will be dealing with and receiving commissions from, once you assign your first authorized user. Third, you assign the user. The broker will typically send an email detailing who you need to add. Last, you will remove the user from your account after a specified period. It is an approachable and straightforward process for the right candidate, but it is not without its risks.
Acknowledge the Risks
As with any other investment, there are some risks involved in the selling and buying of tradelines. The most concerning of these is the chance that your account will be shut down. It is understood that many banks are not fans of this practice; however, it is legal. Therefore, to limit your risks, it is necessary to work with an experienced partner who understands how to cycle the users of your accounts as not to come off as being abusive of the authorized user policies. We understand the delicacy of such a balance; although, we do advise our partners to protect cards they are not comfortable risking in the off chance that something happens.
Know Commissions Aren’t Everything
You will undoubtedly come across tradeline brokers that offer a high commission, and while tempting, you need to understand the intricacies of your arrangement. For example, what good is a high commission if the company rarely sends you any authorized users? Therefore, know what to expect from your agreement because sometimes a lower commission will equate to a higher investment return in the long run.
Learn About Protections
What is the tradeline company willing to do for you to protect your interest? After all, what good are tradelines if they result in the closure of your longstanding accounts. Brokers understand the risks you are taking, and it is their business to protect your interests, ensuring the success of their business model and the benefits to their clients. Therefore, only work with brokers who have a clear path forward. Do not trust your longstanding accounts to overzealous newcomers who may push too many users your way, creating unnecessary risks. A good and experienced broker understands the process and potential of your credit history, and they will not jeopardize that for anything.
Know the Verification Process
As fraud is always a concern, especially when opening your accounts to strangers, it is necessary to understand the verification protocols a tradeline broker uses when establishing new clients. All of our clients undergo thorough vetting and background checks to ensure that they are on the up-and-up. We take the security of your accounts very seriously and will do nothing to risk your creditworthiness and standing.
In order to maximize the value of a tradeline partnership, it is essential to control the supply and demand model. In other words, a broker must have enough clients to satisfy the needs of their partners. Therefore, it is essential that tradeline brokers take on new partners only when needed to limit the risk to existing members and improve the value to both clients and partners.
Tradelines are an excellent opportunity to earn extra passive income, but as with any other investment, they do come with some risks. Therefore, it is necessary to have a partner you can trust. If you are interested in selling tradelines, then contact Coast Tradelines, an experienced partner.