It’s estimated that a subprime credit score affects as many as 34.8% of American consumers. Though a low credit score might not seem like a catastrophic issue, if you want to get a loan, credit card, auto financing — or even just approval for an apartment — you can find your credit standing in the way of what you need. This is an unfortunately common experience, and if it describes your situation, you might be wondering how to find a solution. Paying down debts, removing accounts in collections, and disputing inaccuracies are some of the most common strategies employed, but sometimes these steps aren’t enough to sufficiently repair credit. If you’re wondering whether tradelines will still work in 2022 read on for more information.
Will Tradelines Still Help Boost Credit Scores in 2022?
Last year, the Fair Isaac Corp. — that company formulates and publishes consumer FICO scores — announced that it would launch the FICO 9 score, which would be based on a new algorithm for scoring. This is the first scoring restructure since the FICO 8 was introduced in 2009, so hopes were high that this new formula may benefit consumers. Instead, it caused approximately 40 million Americans’ scores to drop. In 2021, many consumers are still trying to recover the hit to their credit score, but it’s proven to be a challenge for some.
This has prompted the question of whether tradelines still help to boost credit scores in 2021 after implementation of the updated FICO model. The answer is yes. Tradelines are simply a positive line of credit that consumers can add to their credit file to boost their score, offset the impact of negative items, and increase the amount of available credit. Some of the other benefits that tradelines can provide after improving your credit score include:
- Enjoy lower interest rates or purchases
- Get a better insurance premium
- Improve chances for loan approval
These benefits have drawn consumers to tradelines for years, and yes, it still works in late 2021! Investing in a tradeline is one of the best ways to improve your credit score affordably and effectively. The new FICO model may even make tradelines more effective than ever for boosting your credit score.
One of the biggest changes to the scoring model is the increased emphasis on your credit utilization rate. This term refers to the amount of credit you have available vs. the amount of credit you are using. If you have just one credit card with a $5,000 credit limit, for example, your score will be negatively impacted if you’re carrying a balance of $4,977 — experts suggest that you keep credit utilization at 30% or below. A tradeline can increase the amount of available credit that appears on your report, thus improving your credit score and profile.
Will Tradelines Remain Legal in 2022?
Now that you understand the benefits of tradelines, you might think it’s too good to be true. Is it legal to add a tradeline to your credit report? Are there laws against buying a tradeline? These are valid questions to ask, and fortunately, tradelines are an entirely legal solution to consumer credit problems. There are no laws prohibiting the purchase of tradelines, and it’s a completely safe way to improve your credit quickly. It’s safer and more effective, in fact, than many other credit repair solutions that are offered to consumers.
It is true, though, that the Fair Isaac Co. has battled to prohibit this practice. In 2008, this effort reached Congress, where it was determined that prohibition of tradelines would violate Regulation B of the Equal Credit Opportunity Act of 1974. Because FICO cannot verify the marital status of its consumers, it is not legal for them to prohibit tradelines. This set a precedent validating the legality of tradelines. In the years since this ruling, tradelines have only become more popular with consumers who want to take advantage of a simple, legal, and affordable solution to low credit scores. You can enjoy the benefits, too, knowing that your investment is entirely legal.
How Popular Are Tradelines?
It’s hard to estimate exactly how many people are using tradelines on their credit report, so determining their popularity is difficult, too. Out of millions of U.S. consumers, how many are benefiting from bought tradelines? How many people have obtained credit cards, mortgages, or auto loans because of a purchased tradeline? It’s impossible to know the number, but one thing is clear — this practice is more popular than the Fair Isaac Co. would like to let on.
Though FICO has tried to dissuade consumers from investing in effective credit repair, its benefits have only become more apparent. As of 2021, it’s estimated that the credit repair industry is worth $3.4 billion. It’s unclear how much of this number can be attributed to tradeline services, but it’s safe to assume that tradelines are a popular option for many consumers who seek to improve their credit scores.
Coast Tradelines has helped thousands of customers enjoy the advantages of tradelines. Our clients include consumers from a wide range of demographics, but they all have one thing in common — an interest in effective credit restoration. We aim to help these consumers take full advantage of the resources available to improve their credit, and with the impact of FICO’s new scoring model, it’s likely that tradelines will only continue to increase in popularity.
What Are the Consequences of Using Tradelines?
Though tradelines are completely legal, many users remain fearful that there will be consequences for purchasing them. Will there be a penalty if a credit bureau learns that you bought a tradeline? Can it end up impacting your score negatively instead of positively? These are great questions to ask. In order to fully understand the consequences of using tradelines, you need to be aware of how they impact your score.
When you purchase a tradeline, you purchase access to a positive line of credit that belongs to an experienced account holder. Though tradeline characteristics vary, these accounts typically feature:
- Age of at least several years
- Minimal credit utilization ratio
- 100% positive payment history
- Higher credit limits
When you buy a tradeline, you are added to the account as an authorized user, and this line of credit helps to boost your score. The average age of your accounts, credit utilization ratio, and payment history all factor into your score — so when you add an account with positive marks in these categories, your score should increase.
In addition to these benefits, though, are there any negative consequences that may arise? FICO doesn’t have a way to check whether you’ve purchased a tradeline that appears on your credit report, and even if they did, buying tradelines is not illegal — so, no, you won’t be penalized for buying tradelines. It is possible that a tradeline will decrease your score if the owner of the account changes its status in some way — for example, if they miss a payment, increase the balance, or close the account. All Coast Tradelines cardholders are stringently vetted to verify a history of reliable payments and low balances, though, to ensure that this does not happen.
What Credit Boosting Tricks Are Available But Illegal?
Investing in tradelines is completely legal, but there are some credit solutions that are not. While there is no law against being added as an authorized user to an established tradeline, some companies offer to sell the entire account to you, making you the primary user. Unlike the services provided by Coast Tradelines, this is not legal, and it can result in legal consequences if you are found out. It’s also doubtful whether there is any additional benefit to being a primary user rather than an authorized user.
Some consumers may also try to obfuscate their credit history by using identifiers other than their social security number. Credit reports are generated by your SSN, so providing another number may temporarily conceal your full credit history, but it can quickly lead to much bigger problems. Some consumers attempt to use an employer identification number, or EIN, to generate a credit report associated with a business rather than an individual. Similarly, some consumers try to establish a credit privacy number, or CPN, which may lead to federal charges of fraud. It’s clear that there are plenty of options for improving your credit, but opting for a solution of questionable legality will often cause more harm than good.
Credit Solutions That Work for You
Finding the right credit solution may seem like an uphill battle. If you’ve been denied credit cards, turned down for car loans, or even rejected for renting a home, you know just how devastating a low credit score can be. Luckily, with the right resources, you can overcome a low score and start the journey towards credit repair. Coast Tradelines takes pride in assisting consumers on this path and providing reliable, legal, effective services. If you’re ready to take control of your credit and your finances, get in touch with us by booking a consultation or reaching out to us online.
