What are Authorized User Tradelines
Posted on 04 August, 2020 by Miranda Bottas in Boost Credit Score
In this article we'll be discussing what authorized user tradelines are and why you might need to consider using them. We'll cover how they can help with your important financial goals like applying for a mortgage, getting the car loan you've been looking for, or simply improving your overall credit score.
Why do you need credit tradelines on your report?
A personal credit tradeline is a term for an account that shows up on your credit report in the major credit bureaus, including contracts, auto loans, understudy credits, and credit cards. Whenever you loan money from an institution, it's considered to be a credit line or a tradeline.
Credit Tradelines are an important factor in your credit report since your overall credit score depends entirely on your ability to responsibly manage your credit lines and debts. Maintaining these tradelines responsibly results in a favorable credit score, which is crucial to finding and securing a lender who will work with you. Your credit score is a primary factor - if not the single most important, only secondary to your employment or income - used by lending institutions when estimating your trustworthiness.
The better your credit, the more likely you will receive the loan or credit you're seeking. You're also more likely to see a lower interest rate on your mortgage loan or other credit products. Ideally, lenders want to see a clean credit history free of delinquent payments, negative remarks, and high balances. The best credit scores belong to individuals who pay on time, keep their balances to a minimum whenever possible, utilize their credit wisely, and have longstanding lines of credit.
If the major credit bureaus don't have enough data on your behalf to show a good credit score, you'll need to continue improving your score over time by consistently and meticulously following the best credit practices. However, there are certain circumstances when you have a good score and never had a late payment or a negative remark, yet simply lack the length or breadth of credit history necessary to obtain the line of credit you're looking for. This can be frustrating and a difficult situation to be in.
Let's say you have a credit card and an auto loan, but none of these are more than two years old. If you decide you're ready to purchase a home - and even if you have the down payment - the bank may tell you that your credit history isn't substantial. Even though your use of credit has been responsible, most major lenders won't see a couple of years of credit history sufficient enough to secure a 30-year mortgage. If you find yourself in this position, don't worry - it's not the end of the world. There are solutions that await, and you don't always have to spend the next three to five years trying to build what the bank requires to be approved for that loan you're seeking.
What is an Authorized user tradeline?
Luckily, you can take shortcuts that will drastically improve your credit score in a very short period of time. In fact, it may be enough to help you obtain that loan or to reverse the bank's decision of a previous denial. One lesser-known technique that allows building credit rapidly is becoming an authorized user on someone else's credit card.
What does this mean? In short, someone with excellent credit history adds you to their personal credit card's tradeline. This allows you to utilize the leverage of their score credit to improve your own. Depending on the history and specifics of the tradeline, it can make a massively positive difference in a very short time.
When the primary cardholder's credit card company reports to the credit bureaus, they report your name and information along with the owner's name showing you as an authorized user. In other words, your personal credit report will now show the account details of the owner who authorized you – including the primary cardholder's account age, payment history, and the credit limit available. This additional information works directly on your behalf to improve your score by increasing your available credit limit, the average age across your other credit lines, and your overall credit utilization ratio.
To summarize, using an authorized user tradeline allows you to benefit from the already great credit of a cardholder.
How to get Authorized User Tradelines?
One way to get an authorized user tradeline is to be added to a credit card of your parents, spouse, or a trusted family member or friend who has a long history of excellent credit.
However, for many people, finding someone with excellent credit who is willing to add you as a user on their credit card isn't always an option. The good news is you can use the credit of a stranger in the exact same way, and it's completely legal. Of course, there is a process behind it which requires the cardholder's permission and certain fees, but as a result, you still get a powerful tradeline added to your credit report just as you would if it came from your family member or a friend.
Many private companies specialize in selling tradelines and allow you to buy tradelines directly from their sources. Typically, these tradelines hold you as an authorized user for a minimum of 30 days. Generally, it should be enough to ensure a credit cycle passes and at least one report is sent to the credit bureaus reflecting your status as an authorized user.
At GFS Group, we speciliaze in authorized user tradelines and guarantee each tradeline staying on your credit report for at least 60 days, as well as ensuring the results are posted to at least 2 out of 3 of the major credit bureaus. These conditions are far more preferable than most companies and can be extremely helpful and sustainable during time-sensitive situations. Another great aspect is that you can choose which cards you'd like to purchase tradelines from, ensuring you get the most value for your money in terms of results.
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How do Authorized User Tradelines help you reach your goals?
As we've discussed, becoming an authorized user of a high-quality tradeline gives you the opportunity to qualify for a credit lines like mortgages, auto loans, higher limit credit cards, etc., and with lower rates.
Buying tradelines is a way to raise your credit score fast and legally. There is no law against charging someone to add them as an authorized user. An authorized user doesn't receive a physical copy of the card he rents an and doesn't get any of the primary cardholder's information. However, they do get a credit boost and years of perfect payment history on their credit report with no actual access to use the credit for real purchases.
The tradeline method is most helpful when your problem is insufficient credit length or a low line of credit rather than a damaged one. If you've had problems staying on top of bills, the first thing you should do is work on restoring and improving your existing credit. We can also aid in this process by referring you to trusted partners from the credit repair industry who work in line with the industry's best and most effective practices.
Tradelines work exceptionally well in most cases and have helped many people improve their credit while simultaneously getting the loans they deserve. If you think you're a good candidtate, you owe it to yourself to contact us and take a good look at how we can help.
How AU tradelines can help my business?
Sometimes good personal credit is also essential for starting a new business - especially if you need to apply for a business loan on your own. In this case everything described above applies to you, just as it would to any individual seeking any other type of credit.
There's also another opportunity that tradeline market offers to loan related businesses - tradeline brokerage.
If you're a loan officer, a mortgage broker, or a realtor you can start closing more deals by converting your credit-challenged leads (those that would normally be denied) into approvals. All you need is the ability and willingness to analyze your the credit profiles of your client and detect opportunities for employing authorized user tradelines. Although not every low credit score can be improved this way, there are many that can. You can close the loan, make a commision, and also profit from the sale of the AU tradeline. That's quite a win! Plus, it can be done in a relatively short time - sometimes as quickly as a few short weeks.
If you want to know more about our tradeline brokerage program, feel free to reach out for more information and learn how we can help grow your business at no extra cost to you:
How to Improve your Credit Score Fast With AU Tradelines