Back in 2009, the U.S Congress passed and President Obama signed into law: The credit card accountability responsibility and disclosure act of 2009. Which is more commonly referred to by its acronym the card act.
The card act among a variety of other things, restricted credit card issuers from opening credit cards for consumers who are under the age of 21 unless they are able to display that they had an income or the capacity to pay a credit card bill or they had a cosigner.
This is just one example of the various difficulties that certain segments of our populations face when they're trying to either build or rebuild their credit reports and credit scores.
Certainly, people who are over 21 have experienced their own difficulties either trying to build credit from scratch or if they're new to the country and have never had any sort of credit in the U.S system, or they've had to deal with rebuilding credit reports or credit scores because of some sort of economic or personal financial disaster that they've had to deal with.
It is not uncommon, for certain financial experts to advise consumers to try to find co-signers to open secure credit cards or take out credit builder loans as the variety of strategies that they can employ to either build or rebuild their credit reports and credit scores.
All those strategies have their own respective pros and cons some work better than others, some work faster than others and some are just flat out bad ideas or otherwise don't work.
But in this article, I'm going to review and show to you a little bit about the strategy of Tradeline Supply Company Reviews, one of the leading tradelines providers and in order to help increase your credit score.
Tradeline Supply Company Reviews
Tradeline Supply Company
The reason why I pick Tradeline Supply Company to review is that this company besides offering the cheapest tradelines for sale on the market and they have really Good Customer Service (according to their customer satisfaction score), they are also the industry leader in buying or selling authorized user Tradelines. If you have decided to buy a tradeline, it will be the top choice.
- One-time payment
- No need to check credit
- Credit building tool
- Reports to many credit bureaus
What is Tradeline Supply?
When you buy or rent a Tradelines, you pay money for a stranger to add you onto a credit card as an authorized user (AU). It's a strategy that Tradeline Supply Company is using to raise your credit score and it can be used to build credit reports and credit scores.
Buying Tradelines: How Does it Work?
Buying tradelines or Authorized User Credit Strategy (AUCS): is a common method for building credit reports and credit scores.
It's actually fairly simple: a primary cardholder, meaning that the person who actually opened a credit card would add a consumer onto their existing credit card account as an authorized user. That essentially authorizes consumers to use the credit line, and they have full charging capabilities on the card as the primary cardholder.
The difference between the primary cardholder and the authorized user is that the authorized user does not have any liability for the debt, all the debt that is incurred on the card is the responsibility of the primary cardholder, not the authorized user.
You can think of it for the authorized user from their perspective as a credit card but with training wheels.
The Pros of Buying Tradelines (or the credit building quality of an authorized user card)
Most credit card issuers will add the history of the credit card account to the AU's credit reports, which will show at Equifax, Experian, and Transunion, and the addition of the card can help the authorized user to build or rebuild their credit reports and credit scores.
So much has been made and written about the impact of authorized user accounts on consumer credit scores, but there are some self-proclaimed financial gurus, who suggest that authorized user accounts have absolutely no impact on credit scores, and that's incorrect.
Does Buying Tradelines Help Credit Scores?
We do know that most of the credit scoring models that are still commercially available are built by both FICO and Vantage score solutions, which incidentally make up about 100% of the credit score market in the United States.
Their credit scores will still consider a newly added authorized user account, the next time that the consumer's credit score is calculated, and of course, if the credit card account has been managed properly, it can certainly help to improve the consumer’s credit scores, almost immediately.
To the extent that you are contemplating or considering becoming an authorized user on the credit card of another person, like a loved one or a spouse, or a parent, you should probably learn a little bit more about how the card is being managed, and some of the other scoreable attributes of the card before you have your name added to it before you allow your name to be added to it.
So you want to find out the average monthly balance of that card.
The reason that’s important is that credit scoring systems will penalize you if the balance of that card represents too much of the credit limit, that’s formally referred to as that credit card's revolving utilization ratio.
You can calculate that by dividing the balance of the card by the limit of the card as it appears on your credit reports, the lower that ratio the better it's going to be for your scores.
If you have your name added as an authorized user to a credit card that’s got a very high balance relative to the limit, then that ratio is going to be very high, and that credit card could actually be more harmful than it would be helpful.
Of course, it should go without saying that you're going to want to ensure the card does not have any history of late payments, no record of default. Because adding your name to a card like that is actually more counterproductive than it would be productive.
The Best Card to Start when Buying Tradelines
In the perfect scenario, if you could pick the perfect credit card to have your name added to as an authorized user you would choose one that is:
- Old (perhaps even decades old)
- Very low balance relative to the limit
- Always been paid on time
These are the attributes that credit scoring systems look for when they're considering that credit card account as part of the calculation of your score and if you've got a very old card that’s always been paid on time and it has a very low balance relative to the limit then that's going to be very optimal for your credit scores.
Keep those things in mind before you contemplate having yourself added as an authorized user on any credit card account, and you should be just fine.
Thanks for reading and Good luck with your credit journey.
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