HOW TRADELINES WORK

The Definition Of A Tradeline

There’s a term in the credit world called “tradelines.”

 

Tradelines are an account listed on your credit report. For example, a credit card, car note, student loans, or a mortgage are all considered tradelines.

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Benefit Of Credit Piggybacking

Broad regulations and legal loopholes allow for you to benefit from being an authorized user on another person’s tradeline (also known as “credit piggybacking”).

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The issuing bank reports the positive credit history including the age of the account, the limit of the tradeline and the positive payment history to the select credit bureaus of their determination. 

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In other words, once you are added as an authorized user to an account, the history of that account appears on your credit report and will be treated as if it was your credit history.

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FICO® Credit Score Factors

The payment history, age, and limit have a direct impact on the FICO credit score model which impacts your utilization ratio, average credit age, and payment history. 

Ideally, you should have at least 3 open positive tradelines on your credit report. Meaning the account should be OPEN, the payment history is perfect, and the utilization is under 25%.

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MOST ASKED QUESTIONS

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What is a Tradeline and how does it work?

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A tradeline is a credit line/account that is on your credit report. For example, any of your credit cards are considered tradelines on your credit report.

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Your car note is a tradeline. Your mortgage is a tradeline. A student loan reporting to your credit report is a tradeline. The type of tradelines that we provide are Seasoned Authorized User tradelines, with low utilization (under 30% unless otherwise noted) and perfect payment history.

 

We will add you as an authorized user to our tradeline, allowing you to “piggyback” off of the account in good standing. 

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Are Tradelines legal?

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The reader’s digest version is yes, the act of being added as an authorized user to someone’s credit card is legal and is protected by the provisions in the Equal Credit Opportunity Act of 1974 – Regulation B. Although it is legal, it’s usually considered a disliked practice by society and other vendors.

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How long does it take for the tradeline to appear on my credit profile?

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We typically see the tradeline appear on our client's credit profile within 30 to 45 days.

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