With everything we've seen happen over the last two or three years, you might wonder if the effect of tradelines on credit scores can fluctuate with changes in the economic and financial landscape. While anything can happen, buying tradelines is generally a recession-proof method of improving your credit score regardless of the current state of the economy.

We've seen a long-lasting pandemic which brought on many financial woes since 2020. This seemed to be a precursor to equally long-lasting economic hardships in various forms. We have witnessed the supply chain crumble and nearly diminish, then balance itself out, and then fall into problematic scenarios again. We've watched the stock market hit all-time highs only to drop and then shoot back up again. We have observed carefully as the housing market was full-steam-ahead, and then practically came to a standstill. We even saw credit card debt reach all-time lows, level off, and then begin to rise to record highs again. Job markets and unemployment rates have been erratic at best and what was supposed to be a mini-recession has transformed into an inflationary period that seems to have no end in sight.

It feels like we've been on a roller-coaster ride for the last three years and we're still not finished. However, throughout all the doubt, uncertainty and troublesome news we seem to be hanging on quite well overall. It seems that our economy is more resilient than we might have imagined. On the other hand it's important to understand that this resilience comes at a cost. It's safe to say that the average person has had their fair share of struggles during these last few years and it's nothing to simply shrug off.

As we scour data and take a look at how this all affected the credit of individuals and families, we find various metrics - and too many variables to provide hard answers to even harder questions. It should be noted that certain industries and niches did extremely well during the pandemic and post-pandemic period. Others maintained a general sense of stability, although for many of them it was like walking a tightrope. And, others, unfortunately, saw business and personal finances drop like a rock to the bottom of the sea - some of which are still in the process of being recovered.

In terms of buying tradelines, where does this all tie in? Well, let's take a look.

How Did Tradelines Perform During These Difficult Times

Some say we experienced a recession and others say we're still in one. Ask the next expert in line, and they may tell you we are (or were) in a depression rather than a simple recession. Several are claiming that we haven't seen anything yet, and the economic and financial backlash of the last 3 years hasn't even presented its ugly face in the form of the coming economic impacts.

This is an extremely fragile situation to discuss because even when you look to the most trusted sources of information, you'll sometimes find that they are saying "all is well" and "things are looking bad" at the same time.

Some interesting headlines captured by a screenshot (see it below) just the other day are completely contradict one another, for example. While speaking on Elon Musk's Tesla and how it fairs in the eyes of investors, Yahoo Finance published an article just two days ago titled "Elon Musk’s Swelling Inventories of Unsold Tesla Cars Have Wall Street Worried". Next to the story in related articles, we can see that Fox Business says "Tesla Shares Slide After Deliveries Disappoint" while The Telegraph says "Tesla Shares Break Records After Elon Musk Slashes Price".

This kind of up and down, back and forth movement - not to mention that it arrives in a constant barrage of never-ending news is exactly what makes it nearly impossible to keep up. We either seem to be doing horrible but everything is fine, or, we're not doing too well but greener pastures are just around the corner.

You're probably saying to yourself, "Okay, but what does this have to do with buying tradelines?"

The truth is, everything. The markets pivot and change in fractions of a second based on the slightest news updates and can go blasting off in any direction at any given moment. Quick to follow are the banks - both big banks, regional banks, and central banks with their opinions in response to news, or, as a news piece itself which also is a strong market mover and somewhat of a predictor of consumer sentiment. If consumers and markets respond well, spending and the use of cash and credit will hold steady. If consumers and the markets respond negatively, cash tends to flow to specific areas of safety (or stop moving temporarily) while credit and debt tends to rise.

In less than 12 months, the federal reserve bank has been battling against inflation. Their main weapon? Interest rate hikes - and there have been several, with each one yielding its own economic consequences. As an example, the housing market opened in 2022 as a high-flying bird going forward at full speed. A few rate hikes later and mortgage rates were at record highs, and the demand for home financing fell flat on its face. Just as things began to cool, they bumped right back to similar numbers again. We've covered this extensively and you can read our article about buying a home in a difficult economy.

But when we really look at buying tradelines and how "recession-proof" they are, we can say with complete confidence that there has been absolutely zero change in the performance of these financial tools. As a leading tradeline company we can say very openly that the economic effects of rising debt or unemployment has caused drastic ups and downs in our overall sales (and often at the most unexpected times), the power of the tradeline in the hands of the buyer have not been shaken even in the slightest fashion. Yes, it's true that some people may not hold the great credit they held in 2019 and therefore buying tradelines would be of no use to them at the moment. However, when used by the ideal candidate for the proper purpose, not a single thing has changed. Buying credit card tradelines strategically still has the same hard-hitting and very positive results that it has always had.

While not everyone may be in the market to buy a new home or a brand new car right now, those who are will still see the same benefit from buying tradelines as they would have seen 1, 3, or 5 years ago - and that's a good sign that the functionality of these tools are in fact recession proof.

What If The Economy Gets Worse?

Hypothetically speaking, there's nothing that is forever without risk of falling, failing, or not continuing to function. As the rules or parameters of the game changes, so does the general outcome.

Just last month we saw a major Silicon Valley banking institution fail, followed by a few others who either caved or were seized by Federal agencies for unhealthy practices that could have led to potential failure, leaving customers completely broke. There is a lot of "guestimating" going on right now regarding those banks and what the government can do to prevent future events from occurring. If credit becomes extremely tight, the tradeline industry may slow as credit card debt rises.

Additionally, a major change in the way we handle money as a society could have an effect on the way that credit functions altogether. Credit scoring systems - just like any other system - have the potential to change completely. Likewise, there is no guarantee that the need for consumers to utilize tradelines will continue. A major event that shifts how financing works, or a transition to a completely digital or even global currency may usher in a new set of rules that leaves tradelines powerless and resting in the dust.

While anything can happen, and while the sales of tradelines will fluctuate just as all things will, there is no concrete reason for us to believe that tradelines will suddenly "stop working". Credit scores and the credit profile of an individual still play a crucial role in our economy and monetary system. There is no writing on the wall showing signs that credit scores, credit cards, or consumer financing is about to be eliminated. Until then - even in a much worse economy - authorized user tradelines will should have no problem at all delivering amazing benefits and helping people meet or exceed their financial plans.

Finally, there's also a sort of "panic-factor" which must be considered when discussing how versatile and resilient tradelines may be, and that can only be determined depending on the circumstances. For example, there may come a time when the state of the economy may prove that tradelines are more valuable than ever.

Let's imagine that serious financial woes leave banks with no other choice than to execute tightening measures which limit only those with exceptional credit as being eligible for home or auto loans. What would happen then? Well, one outcome is that tradelines would become more valuable than ever. It's possible that we may not even be able to meet the demand in such a situation if enough people were racing to achieve higher credit scores to lock-in financing.

There is no telling what the future may bring, but we know that it's a good idea to be informed, be prepared, and stay educated. As long as credit cards are still working, as long as the stock market is open, and as long as lending institutions are willing to provide loans to the creditworthy (and even if the demands of being deemed "creditworthy" change), tradelines will continue to play an important role for people everywhere.

If you're unsure how to buy tradelines or would like to learn more about what they are and how they can work on your behalf, don't hesitate to visit GFS Group today. We're highly experienced in not only tradeline sales but in understanding how credit really works. Our expert team is very dedicated and ready to serve your needs with qualified answers to any questions or concerns you may have. Reach out and get to know us, we'll be looking forward to it.