Selling tradelines has been written about on several reputable websites referring to it as a “$1,000 per hour side gig,” but is this true?
Technically, the answer is yes, but let us explain further. Keep reading this article to find out how to make money selling tradelines.
Your credit score is a valuable asset that opens doors to financial opportunities. But did you know you can actually turn your credit score into cold hard cash? Through an innovative strategy called selling tradelines, you can earn handsome profits simply by sharing your credit history with others.
What Are Tradelines and How Do They Work?
Tradelines refer to the individual credit accounts listed on your credit report. Each credit card, loan, or line of credit you have is a separate tradeline. The details of that account – like the credit limit, age, and payment history – are all reported to the credit bureaus as a tradeline.
People with excellent credit usually have tradelines that are old, have large credit limits, and perfect payment histories. These “prime” tradelines are extremely valuable when it comes to building credit.
This brings us to the concept of selling tradelines An individual with great credit can add another person as an “authorized user” to their credit card. This links the authorized user’s credit report to the primary cardholder’s stellar tradeline
So by selling access to your prime tradeline as an authorized user, you share your positive credit history and allow the buyer to “piggyback” off your good credit. This in turn can help boost their credit score.
Is Selling Tradelines Legal and How Much Money Can You Make?
Selling tradelines is completely legal. There are no laws prohibiting the practice of accepting compensation for adding authorized users to your credit card accounts.
The profits potential is huge Commissions typically range from $50 to $350 per tradeline sold, depending on factors like
- Age of account – Older is better
- Credit limit – Higher is better
- Issuing bank – Some banks are more desirable
- Your credit score – 700+ scores earn the most
With the right credit cards, some sellers earn over $10000 per year. Considering it takes less than 5 minutes to add an authorized user, that equates to an incredible hourly rate.
What Are the Risks of Selling Tradelines?
While legal and ethical, selling tradelines does come with some potential risks:
- Violating credit card terms – Issuers may close accounts
- Lower credit score – If accounts are closed
- Identity theft – Applicants could use your AU card illegally
- Data exposure – Account numbers visible to brokers/buyers
Additionally, some banks and credit bureaus frown upon the practice as it allows applicants to misrepresent their creditworthiness.
Tips and Precautions for Selling Tradelines Safely
If you want to explore selling tradelines, here are some tips to mitigate risks:
- Only sell tradelines on 1 or 2 less crucial cards, not your oldest/largest credit lines.
- Thoroughly vet the tradeline company you partner with.
- Limit the number of AUs added in a short timeframe.
- Request AUs cards be sent to your address only.
- Set up account alerts and extra security precautions.
- Avoid selling tradelines right before a mortgage/loan application.
Being selective and taking precautions allows you to capitalize on this opportunity while protecting your identity and credit score.
How to Get Started Selling Your Credit Score Through Tradelines
If you have pristine credit and want to turn your score into income, here is how to get started:
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Check your credit cards – Identify 1 or 2 you are willing to risk closing. Older cards with high limits earn the most.
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Pick a reputable tradeline company – Vet brokers thoroughly before providing your info. Top picks are Tradeline Supply Co, Boost Credit 101, and Tradeline Club.
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Submit your application – Provide your credit profile details to get a pricing estimate.
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Add authorized users – Once a buyer purchases your tradeline, add them as an AU for the agreed duration.
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Remove authorized users – After the cycle completes, remove the AU and collect your commission.
By following these steps, you can begin safely selling your credit score as a side hustle or serious money-maker. With the proper precautions, selling tradelines offers an exciting way to leverage your hard-earned credit history.
Frequently Asked Questions
What credit score do you need to sell tradelines?
To sell tradelines you need a credit score of at least 700. The higher the better, as you can command higher prices. Scores above 750 fetch the best commissions.
How much does it cost to buy tradelines?
Buyers can expect to pay anywhere from $150 to $1,500+ per tradeline purchased, depending on the factors mentioned above. Most cost $250 to $500 on average.
Can selling tradelines hurt your credit?
It’s unlikely, but possible. If a credit card issuer closes your account, your score could drop from the reduced total credit. Using a less crucial card mitigates this risk.
Is piggybacking credit illegal?
No, authorized user tradeline purchases are legal, though some banks frown upon the practice as deceptive. As long as both parties follow the law, it’s a legitimate transaction.
How often can you sell tradelines on a credit card?
It’s recommended to limit sales to 1 or 2 per card every couple months. Selling too many AU spots too fast raises red flags. Slow and steady is best.
Selling tradelines represents an exciting opportunity to earn attractive profits from your stellar credit score. While not without some risk, the substantial upside makes it an intriguing option for credit-savvy individuals to consider. Proceed carefully and you can turn your hard work into thousands without ever leaving your house.
The Authorized User Tradeline Strategy
Do you remember hearing this old advice? “When your kids become young adults, add them to your credit cards as an authorized user to give them a head start on their credit.”
This credit-building strategy actually works, and now there is a way to get paid by doing the same thing for other people looking to build their credit profiles. Keep reading to find out how this works and why some people are earning thousands of dollars by selling their authorized user (AU) tradelines.
Are There Risks to Selling Tradelines?
Yes, there are some risks to selling tradelines. The main risk is the possibility of getting your credit card shut down. We estimate a 1-5% chance of getting your card closed depending on the bank and the number of authorized user (AU) spots you sell during a given period of time.
The good news is that you have control over how many AU spots you sell. If you have been consistently selling your AU spots out every cycle, you can always choose to pause your account between sales and give your cards a rest.
The key here is to avoid adding and removing too many AUs too quickly. You want your accounts to stay open so that you can stay in this game for the long haul.
The most common questions that most people immediately ask are “Is this even legal?”, “Can this affect my credit?”, and “What if the authorized user spends a bunch of money on my card?” The answers are yes, selling tradelines is legal; no, the authorized user will not affect the credit partner’s credit; and no, the authorized user cannot spend any money on your account.
The credit card companies will only send the AU card to the primary account holder’s address and the AU does not receive any information about the credit partner or their account whatsoever. Additionally, most banks offer extra security features such as account activity alerts, instant account freezes, and multi-factor authentication.