Selling Tradelines
Selling Tradelines
I was recently introduced to the concept of selling tradelines by a friend (who hasn't pulled the trigger on it yet). A cursory search reveals mostly positive reviews and endorsements from a number of referral-based websites (such as Mr. Moustache), but not much else. There are several references to it through the Bogleheads forums, but no real information.
Anyone have experience with selling tradelines, positive or negative, or any input on the practice?
Anyone have experience with selling tradelines, positive or negative, or any input on the practice?
Re: Selling Tradelines
I've read about it but won't do it as it strikes me as sketchy and amoral.
Re: Selling Tradelines
Wow
I had not heard of this before http://www.thetruthaboutcreditcards.com ... ade-lines/
I had not heard of this before http://www.thetruthaboutcreditcards.com ... ade-lines/
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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Re: Selling Tradelines
I don't need an extra $1000 that badly.
- whodidntante
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Re: Selling Tradelines
I looked into doing this with a 16 year old card because older cards bring more money. I decided not to do it because I could not find any datapoints for the issuer. Some issuers will close your account for selling tradelines.
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Re: Selling Tradelines
Yeah...that sounds like a bad idea all around.
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Re: Selling Tradelines
I do it. Money for nuthin'. Look in the MMM forum, share your badassity and find the tradeline thread II.
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- FrugalProfessor
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Re: Selling Tradelines
Interesting writeup here: https://wealthyaccountant.com/2017/10/1 ... -side-gig/
I blog here: https://www.frugalprofessor.com/
Re: Selling Tradelines
Yeah. It's not something that ever occurred to me, but it seems to be relatively big business, and has been for some time. It also seems to be endorsed by a surprising number of relatively reputable bloggers. The concept struck me as sketchy, although my curiosity is piqued.JoMoney wrote: ↑Thu Oct 12, 2017 12:00 pm Wow
I had not heard of this before http://www.thetruthaboutcreditcards.com ... ade-lines/
Re: Selling Tradelines
I'm curious - how long have you been at it? Any issues with your credit card companies?Jack FFR1846 wrote: ↑Thu Oct 12, 2017 12:59 pm I do it. Money for nuthin'. Look in the MMM forum, share your badassity and find the tradeline thread II.
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Re: Selling Tradelines
I think this statement from this article says a lot if banks finds out what you're doing:FrugalProfessor wrote: ↑Thu Oct 12, 2017 2:06 pm Interesting writeup here: https://wealthyaccountant.com/2017/10/1 ... -side-gig/
I wouldn't be surprised if banks cancelled your accounts and blacklisted you if they suspect you're selling your tradelines.The banks generally don’t like tradelines being sold. Their biggest concern is fraudsters increasing their FICO score, getting a credit card or other loan and defaulting. Without adequate fraud control criminals can cause losses for the banks and that ends the party.
Re: Selling Tradelines
Given that all our credit data is now on the dark net, thanks to the high quality IT staff at Equifax, why can't these people simply buy a new identify with good credit?
No matter how long the hill, if you keep pedaling you'll eventually get up to the top.
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Re: Selling Tradelines
Wow? Add an unknown person with bad credit as an authorized user on my credit card? For which I'm responsible? What am I not understanding?From http://www.thetruthaboutcreditcards.com ... rade-lines:
"Credit brokers essentially connect people with good to great credit who are willing to add authorized users to their credit cards and other financial accounts to people who lack credit history."
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Re: Selling Tradelines
The authorized user doesn't actually ever get your credit card, they don't know your credit card number, and they have no way of getting that information. The authorized user simply gets a credit report that looks like it has a great credit card with a long history of payments and a great credit line, so it bumps up the credit score.spammagnet wrote: ↑Thu Oct 12, 2017 9:19 pmWow? Add an unknown person with bad credit as an authorized user on my credit card? For which I'm responsible? What am I not understanding?From http://www.thetruthaboutcreditcards.com ... rade-lines:
"Credit brokers essentially connect people with good to great credit who are willing to add authorized users to their credit cards and other financial accounts to people who lack credit history."
However, some mortgage companies get more sophisticated credit reports that will delete out these authorized user credit cards from the credit report. So I'm not sure how if the people who buy these authorized user slots on a credit card are actually seeing any benefit, or are they merely being taken advantage of by these "tradeline companies" who make unrealistic promises.
Re: Selling Tradelines
I wouldn't do it. I don't want a stranger with bad credit associated with my name, address or credit.
-Steph
-Steph
Re: Selling Tradelines
Sounds very sketchy.
Since you are adding them as an authorized user, what prevents them from charging on the card?
Since you are adding them as an authorized user, what prevents them from charging on the card?
Fools think their own way is right, but the wise listen to others.
Re: Selling Tradelines
Adding an authorized user to your account who you have no legitimate relationship with is fraud, pure and simple.
Re: Selling Tradelines
Been doing this for about a Yr - can u explain how about it is fraud?
Re: Selling Tradelines
it's most likely against the terms of service of your bank. I don't think it's fraud.
I did it for a little bit, but I found it was generally not worth the hassle. You could get mail for random people, calls from debt collectors looking for them, etc.
Re: Selling Tradelines
My concern would be a call to the card issuer from the authorized user to request card number or a physical card. I am assuming the card issuer will only do this with account owners request, but not sure I trust that safegaurd. What information is provided to the authorized user? If account number shows up on credit report the authorized user could call CC company and pretend to be the primary account owner.
For me the risk / reward ratio is off balance.
Fools think their own way is right, but the wise listen to others.
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Re: Selling Tradelines
This seems “wrong “ to me but probably legal. I can find better ways to make money.
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Re: Selling Tradelines
Since May. Have had no problems with any of the credit card companies. I ONLY use cards that I don't care if they get closed.psystal wrote: ↑Thu Oct 12, 2017 2:53 pmI'm curious - how long have you been at it? Any issues with your credit card companies?Jack FFR1846 wrote: ↑Thu Oct 12, 2017 12:59 pm I do it. Money for nuthin'. Look in the MMM forum, share your badassity and find the tradeline thread II.
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- ClevrChico
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Re: Selling Tradelines
I've done enough churning and cancellation of unused cards, that my cards are too new to be much value. Also, I don't like boosting credit for deadbeats.
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Re: Selling Tradelines
Yup. For every person with bad credit because of some legit medical misfortune or something similar, there are a hundred people who have a bad credit history because they don’t want to pay their bills. And that, ultimately, is a tax on those of us who do pay our bills.ClevrChico wrote: ↑Sat Oct 14, 2017 7:52 am I've done enough churning and cancellation of unused cards, that my cards are too new to be much value. Also, I don't like boosting credit for deadbeats.
Imo, the only way this would be sketchier is if I got paid in drugs.
I get the FI part but not the RE part of FIRE.
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Re: Selling Tradelines
Agreed. My dad managed a department store, and he had to take many people to court to recover funds from bad checks. Most simply chose not to pay, but could. (Mayor's wife, teacher, etc.) It made our family not so popular.TomatoTomahto wrote: ↑Sat Oct 14, 2017 8:58 amYup. For every person with bad credit because of some legit medical misfortune or something similar, there are a hundred people who have a bad credit history because they don’t want to pay their bills. And that, ultimately, is a tax on those of us who do pay our bills.ClevrChico wrote: ↑Sat Oct 14, 2017 7:52 am I've done enough churning and cancellation of unused cards, that my cards are too new to be much value. Also, I don't like boosting credit for deadbeats.
Imo, the only way this would be sketchier is if I got paid in drugs.
Outside of that, the amount of customers that intentionally try to rip off businesses is shocking.
Re: Selling Tradelines
I'm intrigued by this. Is everyone who calls and complains to their cable company for a discount "trying to rip them off?"Outside of that, the amount of customers that intentionally try to rip off businesses is shocking.
Is haggling in general trying to rip someone else off? Or is the company ripping off the potential customer because they don't haggle?
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Re: Selling Tradelines
This was outright fraud/theft by the customer.tj wrote: ↑Sat Oct 14, 2017 11:22 amI'm intrigued by this. Is everyone who calls and complains to their cable company for a discount "trying to rip them off?"Outside of that, the amount of customers that intentionally try to rip off businesses is shocking.
Is haggling in general trying to rip someone else off? Or is the company ripping off the potential customer because they don't haggle?
I've had family and friends manage and own restaurants. For takeout, people would call the next day, claiming they made a huge order, but X was left out, wanting a refund. The customers didn't realize that every order is recorded in a pos system, and no order was ever placed remotely matching them for said date/time. This happened multiple times, and customers would have to be barred by the restaurant. For dine in, dine and dash was a real thing, and measures would have to be taken to discourage it. (Like a buffet line, where you wouldn't receive a plate until you paid.)
I volunteer at an animal non-profit, and several times/year I'm given bad checks for an animal adoption. Some people have no intention paying until we threaten legal action.
Credit scores are an attempt to identify problem consumers and potential employees, which is why I have a problem with increasing credit scores with this method.
Re: Selling Tradelines
Fraud defined: “wrongful or criminal deception intended to result in financial or personal gain.”
Selling trade lines is a violation of the contract you accepted when you got your card. It is a civil matter, not criminal, but is surely fraud under the definition above.
Selling trade lines is a violation of the contract you accepted when you got your card. It is a civil matter, not criminal, but is surely fraud under the definition above.
Re: Selling Tradelines
People add AU all the time. For example you can add your child at a certain age to start building their credit score. You don't need to give them the credit card either. No spending on the card is required. As the owner of the account the card will be mailed to your address only - you are fully responsible for thr account. You can add any AU user you want as long as you have the right info. Neighbor, friend, family, etc.
Re: Selling Tradelines
Right, it's against the terms of service of the contract, so they can cancel your card if they don't like what you are doing with it.soupcxan wrote: ↑Sat Oct 14, 2017 1:24 pm Fraud defined: “wrongful or criminal deception intended to result in financial or personal gain.”
Selling trade lines is a violation of the contract you accepted when you got your card. It is a civil matter, not criminal, but is surely fraud under the definition above.
I don't believe that there is any law that would allow them to sue you in court for any sort of civil damages.
So I'm not sure what you mean when you say it is civil fraud.
Re: Selling Tradelines
+1
Me too. I would have a hard time feeling good about this.
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Re: Selling Tradelines
When you reduce the worth of a human being to a mere three digit number, the said human being has every right to increase self worth using any legal means possible. I do not have a problem with people gaining advantage using authorized user tricks. I have a problem with your basic premise that the credit scores do (or intended to) identify problem consumers/employees. They are intended to do nothing but maximize profits for lenders. Nothing wrong with maximizing profits either, just do not read anything more than it to be a business decision in the interests of the lenders, and just as seeking any trick to maximizing credit scores is a business decision that consumers take in their interests.ClevrChico wrote: ↑Sat Oct 14, 2017 11:52 am Credit scores are an attempt to identify problem consumers and potential employees, which is why I have a problem with increasing credit scores with this method.
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Re: Selling Tradelines
Not much sympathy for a small landlord, I guess. Credit scores aren’t just used by large lenders.lakpr wrote: ↑Sat Oct 14, 2017 7:33 pmWhen you reduce the worth of a human being to a mere three digit number, the said human being has every right to increase self worth using any legal means possible. I do not have a problem with people gaining advantage using authorized user tricks. I have a problem with your basic premise that the credit scores do (or intended to) identify problem consumers/employees. They are intended to do nothing but maximize profits for lenders. Nothing wrong with maximizing profits either, just do not read anything more than it to be a business decision in the interests of the lenders, and just as seeking any trick to maximizing credit scores is a business decision that consumers take in their interests.ClevrChico wrote: ↑Sat Oct 14, 2017 11:52 am Credit scores are an attempt to identify problem consumers and potential employees, which is why I have a problem with increasing credit scores with this method.
I get the FI part but not the RE part of FIRE.
Re: Selling Tradelines
For those who claim that this is against the credit card terms and conditions I would like to see that documented. I've never seen proof of that. As far as I know there are no restrictions on who you can add as authorized users. I don't see this as any different than for example Clark Howard and others who recommend you add your child as AU to build their credit based on your credit history.
- whodidntante
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Re: Selling Tradelines
Good point. It's still true that the issuer can cancel your card for almost any reason. They could cancel the cards of known Bogleheads, for example. And they probably should, since not many of us pay fees or interest.Nate79 wrote: ↑Sat Oct 14, 2017 8:05 pm For those who claim that this is against the credit card terms and conditions I would like to see that documented. I've never seen proof of that. As far as I know there are no restrictions on who you can add as authorized users. I don't see this as any different than for example Clark Howard and others who recommend you add your child as AU to build their credit based on your credit history.
Re: Selling Tradelines
I've never bothered to read the cardholder agreements. You might be right that it's not in there.whodidntante wrote: ↑Sat Oct 14, 2017 8:34 pmGood point. It's still true that the issuer can cancel your card for almost any reason. They could cancel the cards of known Bogleheads, for example. And they probably should, since not many of us pay fees or interest.Nate79 wrote: ↑Sat Oct 14, 2017 8:05 pm For those who claim that this is against the credit card terms and conditions I would like to see that documented. I've never seen proof of that. As far as I know there are no restrictions on who you can add as authorized users. I don't see this as any different than for example Clark Howard and others who recommend you add your child as AU to build their credit based on your credit history.
Re: Selling Tradelines
There's been a decent bit of drama since Wealthy Accountant's post on this came out. After an MMM user challenged the company that Keith recommended, Keith rescinded the recommendation and edited his blog post. Then a representative of that company posted to the MMM thread containing the concerns (ten posts down), and then opened a thread to answer questions...then stopped answering questions.
Like others have said, I don't like this. It seems to violate some sort of step-doctrine-ish ideas, or maybe it's just too risky/unproven for my tastes.
Like others have said, I don't like this. It seems to violate some sort of step-doctrine-ish ideas, or maybe it's just too risky/unproven for my tastes.
Re: Selling Tradelines
Discussions of dishonest behavior* or bypassing the law is totally unacceptable. This thread has run its course and is locked.
* "sketchy", "may violate terms of service"
* "sketchy", "may violate terms of service"