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 authorized user
• 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 authorized user account is a credit card account which has been opened by the primary cardholder for an additional user. Adding a person as an authorized user 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 authorized user 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 authorized user.

• Limits and restrictions in reporting by institutions apply individually to each company.

• The number of authorized users 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 authorized user accounts. the person with the excellent credit history would add the person who is trying to build credit onto their credit card as an authorized user. 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.
• Length of time which the information reports to the bureaus for authorized users can be short, many times you are removed within 1-2 month which results in the tradeline being      removed from your credit report as well.
• 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 authorized user even if the authorized user 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 authorized user 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 authorized user 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 authorized users 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.
• Authorized user tradeline reporting may have limitations with respect to time and card issuing company.
• Each tradeline may be recognized differently by institutions with which credit sought.
• Primary cardholders are limited to the total number of authorized users available per card.

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.

Any item which will impact an individual’s credit score is a serious concern.

Some may choose to purchase tradelines from individuals either representing themselves as expert authorized tradeline brokers or owners of the tradelines.

Tradelines are unlike an item of jewelry or an automobile and are only realized to be authentic when they are successfully or unsuccessfully added to a credit report.

All publications list the disclaimer which limits their liability for items which are posted for sale.

Considering the options of potentially stolen personal information, damage to long-term credit and exposure to various types of possible fraud these publications are considered wise in doing so.

Key factors to understand are:

• Companies listing items for sale normally are not responsible for any potential damages or criminal liability which comes along with purchases.
• Credit experts who broker in authorized tradelines many times offer advice and sometimes guide clients through the credit score boosting process.
• Normally items which require expert guidance to avoid financial ruin or potential incarceration are not top choices for bargain posting publications.

Any business is nothing more than a group of people. Getting to know the company and people and following up on credentials, awards, satisfied customers and ratings which represent benchmarks within their industry are methods which aid in the decision-making process.

Experience and the demonstration of a successful track record are great indicators of the potential legitimacy of a company.

Few companies can offer results based guarantees when it comes to credit repair, but those who are willing to charge their costs and fees or provide solid warranties would certainly minimize consumer risk.

Key factors to understand are:

• History and proven success record are indicators of legitimate tradeline brokers.
• Ratings, Accreditations, and awards are excellent measures of reliability.
• Finding companies willing to stand behind their products with guarantees are a premium.

Just like any other business authorized user tradeline brokers can be judged on experience, reputation, and proven results.

Most companies which have been operating for a longer time with have either many happy customers or unhappy ones.

A history of working with clients who endorse their services is also a good measure of possible ways to choose the best source for authorized user tradelines.

Some companies are more results driven than others in any field, and those are the ones who establish the highest accolades from their former clients.

Success stories of individuals speak louder than many claims or advertised services. When it comes to results the people who have experienced them are the best spokespeople.

Like any decision when choosing a business to perform services, information can be sought and then evaluated based on which one seems to be the best fit for individual needs.

Expertise in the area of authorized user tradelines is something which may have developed during the last decade based on changes from the previous decade. Key factors to understand are:

• Judging companies from virtually any industry can be done using the same guidelines.
• Experience and a track record of success are qualities to look for when choosing.
• Endorsements by previous clients are often an indication of continued success.

President Bill Clinton signed the Credit Repair Organizations Act in 1996. The purpose of the legislation was to protect consumers against false statements and to overcharge for credit repair services.

Focusing on the undereducated and lower income clients who were being targeted by questionable ethical practices and outrageous charges for services which often were nothing more than a scam was common practice during the 1990’s.

The regulations outlined specific items of not being charged huge upfront fees for credit services or unusually high fees in the form of account maintenance costs.

Specific credit score increases were no longer able to be advertised, and the majority of the costs of credit repair was shifted to pay after delete results-based invoicing.

Any credit repair service could no longer use 50 points or 100 points guaranteed as examples of baiting in those who were undereducated and could not understand the claims falsehood.

CROA protection is designed to cover all aspects of targeting by companies of the two clearly defined groups which comprise a majority of clients from previous decades.

Key factors to understand are:

• The CROA is legislation which was passed during the 90’s to eliminate predatory credit repair practices.
• Guidelines are geared toward protecting the under-educated and financially challenged individuals specifically.
• No longer could companies advertise an exact number to credit score improvement to sell their services.
• Most fees and expenses were required at the end based on results rather than hollow promises.

The CROA technically governs any business which uses items for credit repair.

Much debate has been made about the fact that article 404 of the CROA prohibit any fees to be collected up front before the credit has been restored.

There is certain ambiguity which seems to be directly centered around those who desire to charge for tradelines in advance and those who use a pay after results philosophy.

Tradeline companies argue that authorized tradelines are a product and can be sold as a product without falling under CROA regulatory guidelines.

The debate seems to center around whether authorized tradelines are marketed and sold as part of credit repair services.

Some companies who offer authorized user tradelines for sale list a guaranteed credit score increase which is without question prohibited under CRO rules.

It seems many of the companies who are operating under the concept that tradelines are not governed by the laws covering all credit repair appear to violate openly the rules which would apply.

For any company offering credit repair services all rules apply.

Key factors to understand are:

• CROA rules apply to any credit repair activity which is either sold or advertised for sale.
• Authorized user tradelines are sometimes viewed in the gray area of CROA guidelines.
• Charging upfront fees before results in CROA rules is a direct violation of section 404.
• All credit repair activities are limited to payment upon results to protect consumers.

If a company openly breaks the rules which are designed to protect consumers from predatory practices, that means they exhibit contempt for the rules or the system which enforces them.

When a company openly demonstrates a set of guidelines and procedures which are punishable by law and subject to criminal and civil damages it might not be considered best practices to retain their services or conduct any business with them.

If they are under investigation or in the process of being indicted any fees paid for services may have little to no chance of being recouped.

If companies have been in violation over a period, there may be a host of customers currently in line waiting to enforce legally refunds of monies paid and potential damages.

By hiring companies who are breaking the rules, it is nothing more than getting in line behind a group of people waiting to be paid.

When the money runs out, and it usually does as a result of fines, court, and attorney costs, consumers may wonder why they chose to deal with potential criminals, to begin with.

Key factors to understand are:

• If companies exhibit no respect for laws governing their industry why would they choose to be customer service responsible?
• When hiring a company with high risk for past damages and penalties being imposed it is like taking a place in line if they do not produce instant results.
• If laws are being openly broken who is to say the products or services offered were obtained by legal means?

Consumers can check databases for cases pending and previously closed by searching FTC sites and other Federal and local government sites.

Local and state watchdog organizations are set up for many times of consumer protection, and Better Business Bureaus are often current in any legal proceedings filed against companies in their geographic territory.

For those who are not computer savvy, phone calls may be made to local authorities who will help with searches or provide phone numbers which may expedite the information gathering process.

On a very rare occasion a user may want to be removed as the authorized user on someone else’s credit card. This could be desired if the card owner somehow did something to cause a negative item to appear. maybe a lender requested the user to be removed, or the user just didn’t like how the AU account looked on their credit report.

You will always have the right to be removed as an authorized user, you can just advise us and we will get you removed. You can also send a note to the credit bureaus and they will usually remove the info in just one cycle.

One thing to remember is that once you are removed as an authorized user the corresponding reporting and history will be removed as well.

According to most credit experts, authorized user tradelines are designed to be used in conjunction with other types of open accounts.

There are no steadfast rules, but the most common ratio of primary accounts should be 2 to 1 over authorized user accounts.

To effectively add authorized user accounts for the optimum results, many seek the advice of expert brokers who specialize in credit repair using them as one of their tools.

Too many authorized tradelines compared to primary accounts can cause more harm than good when attempting to bolster a credit score.

For those who have a minimal credit history and few tradelines the boost can be significant if the addition of authorized lines is coordinated carefully with new credit.

Those having the most to gain from the repair may well have the most to lose since multiple credit accounts will not provide much of a cushion by flooding the bureau with only authorized user tradelines.

Key factors to understand are:

• New credit files are the most volatile due to limited information.
• Most experts feel two primary tradelines as a minimum should be open for each authorized user account.
• Coordinating the credit building process with authorized user tradeline experts may be the best answer to avoid mistakes.