The best part about tradeline selling is that it benefits both the buyer and the seller. The buyer of tradelines can improve their credit score, while the tradeline seller can potentially make thousands of dollars by selling tradelines in a small amount of time – It is a win-win situation for all parties involved.
What Exactly Is Tradeline Selling?
Often referred to as authorized user tradelines or seasoned tradelines, this is the process of allowing someone else to improve their credit by making them an authorized user on your credit card. Essentially, the stranger will be piggybacking off your good credit score to raise their low credit score.
You may be wondering how this is legal. Well, we’re here to tell you that it’s an entirely legal and popular way for people to raise their credit scores. It helps them because their credit report will now show a higher amount of available credit once they’re an authorized user on your seasoned credit card. This can help them get lower interest rates, rebuild their credit score, or qualify for loans.
How Do You Make Money Selling Tradelines?
The concept is actually quite simple. People will pay you hundreds of dollars to become an authorized user of your credit card. This may seem like a lot of money for such a small favor, but it is well worth it to them.
Why? Because it could save them tens of thousands of dollars over the course of many years. For example, it could help them secure a lower interest rate on a mortgage loan, which would save them a ton over the lifetime of that loan.
A lower credit score could help the purchaser of tradelines secure a job interview that requires a credit check. That higher-paying job would greatly improve their and their family’s quality of life. There are even less tangible benefits as well, such as increasing the chance that a rental application will be accepted.
The fact is, there are many reasons why someone would want to increase their credit score, and there are plenty of people willing to do it this way.
A Brave New Frontier
Banks allow you to add authorized users to your accounts because it’s beneficial to both parties. For instance, many parents will add their children as authorized users of their credit cards to help them establish credit before they become independent adults. There are also businesses that add employees as authorized users on business cards so they can purchase supplies and services for the company.
These are just a couple of reasons why banks allow people to add other authorized users to their credit cards. However, it wasn’t anticipated that people would sell this perk as a commodity to strangers, making it a brave new frontier in making passive income.
Does Selling Tradelines Affect Your Credit Score?
As previously mentioned, the individual purchasing tradelines never actually obtains the credit card. As a result, they are unable to use it. Therefore, it should have no impact on your credit score.
That being said, there are instances when it is unwise to sell lines of credit. Your credit card score could take a dip if long-standing cards are closed right before you get yourself a mortgage or a business loan. If a bank notices that there are too many authorized users on a credit card, they could close it. That will make your available credit go down and your utilization go up, resulting in a lower credit score.
To avoid this, all you have to do is follow a set of simple rules to minimize the risk of getting a card shut down.
How Much Can You Earn by Selling Tradelines?
How much you earn from selling tradelines depends on the price and quantity of the tradelines you sell. For many people, it’s normal to make around $1,000 a month.
With tradeline companies such as GFS Group, you can earn $70 to $450 for each authorized user added to each of your cards, depending on the card’s parameters such as age and limit. That price will typically depend on the age of the card, as older cards can generate more money because they offer a more significant boost to the buyer’s credit score.
Another significant factor is the spending limit on the card. The higher the spending limit, the more it shows lenders that the person is trusted to pay off their credit and spend responsibly.
Where Can I Sell Tradelines?
The best and easiest way to sell tradelines is through a tradeline company that specializes in buying and selling tradelines. Once you sell a tradeline to a buyer for a set fee, that buyer will stay on the account for a set period of time, usually two months. After that set time, the company will tell you when to take that user off your account. Once your line is bought, the company will pay you your share of the agreed-upon amount.
Are There Requirements for Selling Tradelines?
The sole purpose of buying tradelines is to boost credit scores. Therefore, people only want to purchase tradelines that help them achieve that.
Generally, if you want to start selling tradelines, you must have a credit card that is at least two years old with a credit limit of at least $5,000. If your credit card was opened too recently or the credit limit is too low, your application will most likely be rejected. Additionally, your credit card must have a spotless credit history and a credit utilization rate of under 15%, and it should be a personal card and not a business card.
If you have a credit limit that is too low to qualify, it’s always possible to call your credit card company and ask them to raise it. However, if you’re interested in applying for another line of credit, this could be considered a hard inquiry.
If you can’t qualify due to having a credit card that was opened too recently, we recommend marking the 2-year date on your calendar so you can start making money from it right away.
What About Credit Card Rewards From Selling Tradelines?
After adding an authorized user, you receive a copy of your credit card in the mail, and if the buyer isn’t using it, you don’t get any credit card rewards, including miles and points. However, this is good news because the user does not have access to your credit card and can not make any purchases with it. In fact, they never know anything about you, including your name, address, card balance, history of transactions, etc.
Are There Risks Associated With Selling Tradelines?
Breaches and unauthorized purchases are the main concerns with anyone that sells trade lines by adding authorized users. That’s why it’s important to have the credit card mailed to you. You should always keep the card in a safe place where nobody else has access to it.
For your peace of mind, you can also add another layer of protection by setting up two-factor authorization by calling your credit card provider. This will alert you if someone tries to order a card to their address or tries to access sensitive information.
Another risk associated with selling tradelines is the possibility of the credit card company canceling the cards if too many authorized users are added to the cards. That’s why it’s always important to read your credit card company’s policies and guidelines regarding authorized users. It will let you minimize your risks nearly to zero.
Does Selling Tradelines Take Time?
Unlike other methods of making money that exchange your time for a paycheck, selling trades only takes a couple of hours a month. Using that good credit to sell tradelines is a much more efficient way of making money than other side gigs such as driving for Uber or a food delivery service.
As the primary cardholder, your responsibilities include adding the authorized users and removing them via phone calls. That is essentially all the hard work. The rest you can leave to a professional company that specializes in selling authorized user tradelines.
This is a secure, easy, and great way to earn money from your existing credit lines. You may sell as many or as few tradelines as you choose.
