Do You Really Need Great Credit To Sell Tradelines?
Posted on 20 September, 2024 by Miranda Bottas in Selling Tradelines
In this article we'll answer a question that we're not often asked, yet we feel it's a big assumption. We think it's a great subject and should help many of you to comprehend something that's not very apparent. So, do you really need great credit to sell tradelines? The answer is yes and no.
Now, don't worry, this isn't going to be one of those lengthy, drawn-out articles. You can continue reading with confidence. You'll get the info you're interested in very shortly.
The Answer Is Yes And No
Feeling a little confused? Perfect! Now we have your attention and can explain exactly why this is such an important idea to talk about. It's a little strange that it never came up in one of our previous blogs, and that's why we're here today.
When you sell tradelines, there's absolutely nothing about it that has to do with your overall credit score. You don't need to be rich, or have huge lines of credit on old 30 year-old credit cards to make money. Yes, it's true that old cards with high limits earn the most, but that's beside the point. You don't need an 800, a 790, or a 775 credit score. You don't even need a 750 credit score. And contrary to whatever you've been told or assumed, you don't even need a credit score of 700 to sell tradelines. Let us explain it all very clearly.
Selling a credit card as a tradeline depends on one thing and one thing only:
The history of the individual card that you sell.
If we had to leave without explaining anything else, that's all you'd really need to know. But we won't leave you hanging without discussing what the reasoning is here, and why it works this way.
Why You DO Need "Great Credit" To Sell Tradelines
If you're going to sell a card and add authorized users to it, the most important factor is for that particular card to have a spotless payment history. No late pays, no defaults, and no collections. If you made a single late payment accidentally 14 years ago, well, that's a potentially different story since it probably won't show up on your history anyway. What's genuinely important is that the card is in good standing and was never delinquent. All of the payments that are visible on your credit report must be what we call "in the green", meaning no "red" or negative remarks for any card you wish to sell with us.
The next important thing is that the utilization on the card is below 10% and maintains a balance below 10% during all times. This is critical to ensure that the buyer of your line gets the strongest overall benefits from having your card history added to their credit report.
So, in a way, yes you do need great credit, but only on the card you're selling. If you have other cards with negative remarks or that had previously been in collections or are delinquent, those cards won't meet our requirements for acceptance anyway. However, that doesn't eliminate you from selling your good cards which DO meet our standards. The thing is, most people with "great credit" aren't usually in that particular situation.
Why You DON'T Need Great Credit To Sell Tradelines
As we've already mentioned, this is a case of what's typical vs. what's not typical.
Typically speaking, it's rare for someone to have a few perfect credit cards with excellent payment history and low utilization, but have other cards that are littered with negative remarks which may have previously been in delinquency. It's not very common to have a credit profile that shows a rather nasty history regarding certain accounts and simultaneously has a couple amazing cards. Usually when that situation comes up it's either because the individual had a bad run in the past and has gotten things under control, or - the bad part - they are slowly beginning to spiral into terrible credit but still have a few cards that haven't been wrecked yet.
While it's not ideal nor desirable to accept cards from someone showing a high probability of slipping into serious credit problems at any moment, we understand that people have hard times, learn hard lessons, and are capable of change. One of the main reasons we're in business is to help deliver equal credit opportunities to people who are responsible but are having a hard time growing their credit.
Very few of our buyers have terrible credit scores, or even low credit scores. In fact, if they currently have bad remarks or collections there's no point in being added as an authorized user in the first place. It won't help them. Their own credit problems must be cleaned up before they can rely on the authorized lines of another person to help them advance.
The vast majority of our clients have really good histories of being responsible with their payments and are usually lacking in the areas of credit age or diversity. Some of them have impressive scores but still cannot get financing because of those factors alone. The lender will tell them "sure, your score is good but you don't have enough age, history, or open credit lines to meet our requirements". These people are just seeking that extra push to get them where they need to be for loan approvals or for easier and better financing. That includes but isn't limited to acquiring new cards in their own name (without waiting years to accomplish it). Being an authorized user on the right cards can put all of these things within easy reach.
As an example, younger people with only a few of their own cards can show a flawless history and have a great credit score. But getting that score to the next level, achieving the lowest utilization possible, or increasing the overall age and "thickness" of their credit history can be a long and tedious job, and they may not have the time or patience. For them, purchasing a spot on your card is a very welcome and logical shortcut that can aid them in a number of ways.
Great Intentions Are More Important Than Great Credit
While we probably won't accept the cards from an individual who shows immediate and obvious signs of heading into the spiral of horrible credit (and yes we know how to spot that), don't assume that you're automatically exempt from selling tradelines with your good cards just because you have a 650 score or a few late payments over the last 5 years on other accounts. It's not uncommon for a couple of open auto loans and a home mortgage to put you down into the 600's even when your payments are on time and you've got plenty of free credit. If your overall credit utilization between your cards is a bit high, let's say 40%, it can really hammer your credit score down - even if you have 3 or 4 cards with no balances and carrying perfect histories.
The final answer to this article is a big fat no. No, you don't need great credit to sell your cards. But you do need to be responsible. You need to have cards that meet our requirements, and must have the confidence and morality to know that whatever cards you choose to sell are part of a mutual agreement that affect the buyer, the company (in this case, us), and the cardholder (you). If you don't hold up your end of the bargain, everyone suffers and you don't get paid. That's just the way it works.
So, while an extremely organized, extremely responsible person who never had any issues maintaining great finances throughout their life is the perfect candidate to sell tradelines to our buyers, they're also far from the only person who's doing it.
We hope this information helped to clear up some questions or concerns. If you've got great cards, and if those cards have a great history, you're as good of a seller as anyone. Just make sure you've got the right intent.
Interested in getting paid to sell your cards? Want to learn more? Wonderful! Sign up with us and start to sell tradelines today. We're here to answer any questions that come up during the process, so don't hesitate to reach out if needed.
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