Summary: Tradeline Supply Company offers authorized user credit lines for purchase. This is a relatively new credit-building strategy. What are the pros, the cons, and the risks?
What is a tradeline? A tradeline is a record of credit activity that is reported to a credit bureau. If you have a student loan, that’s a tradeline. A credit card is a tradeline. Each loan or credit line you establish is another tradeline.
To generate a credit score you need to have established tradelines on your credit record.
A tradeline with all payments made on time will help your credit. A credit card tradeline with low credit utilization will help your credit. A tradeline with late or missed payment or maxed-out cards will hurt your credit.
If you have a thin credit file with very few entries or if your credit has taken some damage, you may be looking to add positive tradelines to your credit report. You may have heard that it’s possible to buy tradelines. But how do you do it? Is it legal? Does it work? Where can you buy tradelines?
Let’s look at the practice of buying tradelines and at one of the leading tradeline providers.
Buying Tradelines: How Does it Work?
People who are trying to build credit often ask a friend or relative with good credit to add them as an authorized user on a credit card.
As long as the card issuer reports authorized users to the credit bureaus, that will add the original user’s payment record and credit history to the authorized user’s record.
Of course that only works if you have a friend or relative with good credit who’s willing to add you as an authorized user. Not everyone is so lucky.
The practice of selling tradelines works the same way, except that you pay a person you don’t know to add you as an authorized user for a fixed period of time.
Tradeline Supply Company and several other companies offer consumers access to a long list of credit cards. You can pay to be named as an authorized user on one or more of them.
The pitch is simple: The best credit card tradelines have the largest credit limits and the longest credit history. With one purchase you can add that credit card’s history and credit utilization to your credit report today.
Is it really that simple?
Buying Tradelines: the Pros and Cons
Is it legal to buy or sell tradelines? So far, yes, though Experian warns that if you use a purchased tradeline to improve your score and subsequently default on a loan, you could be liable for bank fraud.
As of now, we know of no case where a tradeline purchaser has been prosecuted.
At least one company selling tradelines has been prosecuted by the FTC. Credit card companies typically prohibit the practice and may close an account if they believe authorized user status has been sold.
Credit bureaus also advise against the practice. The FICO 8 scoring system has an algorithm designed to detect and exclude purchased tradelines.
So it’s not illegal to buy tradelines, but it is not exactly approved by credit bureaus or card issuers. Let’s look at the pros and cons.
- You can add an established tradeline to your credit history almost overnight.
- You may be able to boost your credit score substantially, especially if you have a thin credit file.
- Your credit score might not improve. There are no guarantees, especially as scoring models take steps to detect and disregard purchased tradelines.
- You give your social security number and other personal information to a stranger. You could be at risk for identity theft.
- The premium tradelines that do your score the most good may be quite expensive.
- The primary account holder could miss a payment or run a high credit utilization rate. That could harm your credit.
- The primary cardholder could remove you from the account.
- Some tradeline brokers use completely illegal practices like asking you to misrepresent your address or Social Security number.
Should you consider buying a tradeline? That choice is up to you, but we urge you to read more on the subject and make a fully informed choice.
Tradeline Supply Company Review & Ratings
Tradeline Supply Company
Tradeline Supply Company is the industry leader in buying or selling authorized user Tradelines. They offer the cheapest tradelines for sale on the market and have a good customer satisfaction score.
No credit check
Credit building tool
Reports to at least 2 of the 3 credit bureaus
Top tradelines cost $$$
Can take up to 6 weeks to show up on your credit report
Authorized user tradelines for sale can increase your credit score by positively affecting these major scoring categories:
- your credit utilization ratio
- payment history
- length of credit history
Tradeline Supply Company is the industry leader in buying or selling authorized user Tradelines.
Who Is Tradeline Supply Company?
Tradeline Supply Company (TSC) may be the new face in town, but David Melnicoe, the CEO, has quickly become the new sheriff for the Tradeline Industry.
Seeing an industry dogged by bad reviews and questionable business practices, he set out with the goal of treating customers professionally.
This simple business model has taken David from selling his own personal five Tradelines for sale on Craigslist to an office employing seven people in only four years.
They are no longer accredited by the Better Business Bureau, which is a business watchdog that requires its members to abide by a strict code of business ethics.
According to the Tradeline Supply Co. CEO, when he started the company, you couldn’t find a Tradeline for sale anywhere below $300. Now, he regularly sells cheap Tradelines for $150 which has understandably tweaked some of his competitors.
What Makes Them Different?
Tradeline Supply Company (TSC) offers the cheapest Tradelines for sale on the market.
How much does it cost to buy Tradelines?
You can find tradelines starting as low as $150, but the price is usually much higher with an average being around $300 for seasoned tradelines.
One of the ways they keep their costs down is by only selling Authorized Users for specific banks and credit card companies because, “10 % of the time it doesn’t post properly,” Melnicoe warned.
This is because many of the banks do not properly report authorized users. “I refuse to sell Tradelines for Citi Bank, Wells Fargo, and US Bank,” David said because they only have a, “50-75% success rate of posting to credit reports.”
The reason many of these banks do not report accurately is that the address of the authorized user does not match the address of the primary tradeline owner.
TSC Avoids the Shady “Merging-Address” Request
Many of Tradeline Supply Company’s competitors use an illegal technique called merging addresses to avoid this problem.
They ask their customers to add the primary Tradeline owner’s address to their credit file addresses.
This is an illegal practice that TSC does not use. They recommend that Tradeline buyers avoid sellers who request you to add an address that is not yours to your credit file.
Quick & Easy To Apply Credit Building Tool
How To Choose A Tradeline
There are two categories to choose from. Both will affect the cost of buying a Tradeline:
- Credit limit: The maximum amount of money someone can charge on their credit card.
- Length of credit history: How long the credit card account has been opened.
They both have positive effects on credit scores. However, choosing the best tradeline for you will depend on two key factors:
There are two sorts of consumers that consider purchasing a Tradeline. They may have different requirements.
People with Limited or No Credit
Have you heard the stories of people’s credit scores increasing 100 or 200+ points from purchasing a Tradeline?
Every story of huge credit score jumps of 100 to 200+ points occurred to people who had no credit or limited credit.
This is because people with bad credit have a lot more negative reports to overcome than someone who has just started building credit.
If you have no credit or limited credit then choosing a tradeline with a long credit history will make the biggest impact on your credit score.
People with Bad Credit
Someone with bad credit can see a credit score increase from purchasing a tradeline. However, it will depend on the history in your credit file and the tradelines that you choose.
Sometimes this is referred to as diluting your payment history.
Even if you dilute your payment history, those late payments, collection accounts, and other black marks will still be there, and it will take more work to improve your credit than it will for a person with a thin credit record to establish credit.
Why Does Tradeline Supply Company Have Negative Reviews?
Tradeline Supply now reports that the negative reviews suddenly stopped when the Federal Government shut down the company they suspected was behind the despicable campaign.
All of the negative reviews have been removed from Trust Pilot but not from Google Reviews.
In my talk with Mr. Melnicoe, I asked about some of the negative reviews his company has online.
He explained that in 2019, someone (most likely in the industry) started a sustained negative fake review campaign against Tradeline Supply Company.
This orchestrated spam campaign has required Melnicoe and his company to shut down reviews on their Facebook page and to take regular action against the fraudulent reviews.
You can read more of the details about his ongoing war against the ‘Fake Negative Reviews’ on the Tradeline Supply Company website.
How Do I Cancel My Tradeline Order?
At this time, Tradeline Supply Company does not have an official ‘Cancellation Policy’ posted.
David Melnicoe, CEO of Tradeline Supply Company, and he told me, “if anyone wants to cancel their order, so long as we have not added them to the credit card, it’s no problem to issue a refund.”
This means that there is a short window, a few hours to possibly a day or two, from the time when you order to the time when you can cancel your order.
Alternatives To Tradelines
While Tradelines can give a quick credit score boost or add payment history to your credit file, they do not help you continue to build credit after they are purchased. They also present real risks and drawbacks.
Secured Credit Cards
If you have bad credit, no credit, or limited credit, you probably will not qualify for a traditional credit card.
You may want to purchase a Tradeline so that you can qualify for a traditional credit card.
You can get a Secured Credit Card with no credit check by making a deposit and getting a secured card. Your deposit will become your credit limit.
They will then issue you a regular-looking credit card that will work as a traditional credit card and start to build your credit.
Best Secured Credit Cards in 2021
Compare multiple secured credit cards at one time and pick the best option for you.
Credit Builder Loans
Credit Builder Loans are an effective credit builder for people with no credit or limited credit.
Unlike a traditional loan where you’d receive the money upfront, the lender holds your payments in a CD or bank account until you make all of your payments.
When your loan is paid the proceeds of the loan are available to you in one lump sum.
They are great for building credit because there is no credit check and the loan type will add to your credit mix to help increase your credit score.
Wanna Know the Easy Way to Build Credit?
Credit builder loans are an excellent way to start building credit because they are low cost and there is no credit check.
👉 Fun Fact: Credit Builder Loans have been available for many years. But only recently have they become available online nationwide.
Should You Buy a Tradeline?
Buying tradelines has received a great deal of publicity. We don’t doubt that some people have used purchased tradelines to improve their credit.
At the same time, buying tradelines has significant disadvantages that you will have to consider before making a deal.
If you do decide to buy a tradeline, Tradeline Supply Company is worth considering as a provider. As always, do your own research and consider all options!
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements, or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved, or otherwise endorsed by any of these entities prior to publication.