You should not buy tradelines. Even though it’s not explicitly illegal, buying tradelines may be considered deceptive by lenders, and you could be in danger of committing fraud if you use the tradeline to misrepresent your creditworthiness.
Using a tradeline you've purchased to manipulate your credit history and then knowingly submitting false information when applying for new credit may be considered fraudulent. So, while buying tradelines probably won’t get you into legal trouble, using your improved credit history to get a credit card or loan thereafter could.
Key Things to Know About Tradelines
- A tradeline is the record of an account on your credit report, such as a credit card or loan.
- Buying a tradeline occurs when a person with good credit adds an authorized user to their credit card account for a fee, so the person with bad credit can improve their score.
- Purchasing a tradeline could violate a credit card company’s terms of service.
- Using tradelines to deceive lenders or creditors in order to qualify for financial products is illegal.
- Buying stolen or fraudulent tradelines is also illegal.
There are other ways you can increase your credit score without purchasing tradelines. Learn more about how to improve your credit and get personalized-credit improvement tips for free here at WalletHub.
This answer was first published on 06/15/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Frequently Asked Questions: Tradelines for Sale
Is purchasing tradelines legal? ›
While it's technically not illegal, buying a tradeline isn't exactly ethical either. Many creditors consider it to be misrepresentative, and the practice poses some risks for borrowers, like identity theft.
Can buying tradelines help your credit? ›
Buying tradelines will do nothing to help you build good credit habits because you won't have access to the account. And, if you buy a tradeline from an individual rather than through a service, which can protect your personal information, you may be at risk of becoming a victim of identity theft.
How many tradelines does a CPN need? ›
Credit Trade Line / Approval Bullets:
The minimum number of trade lines most lenders find acceptable is 4 open and active trade lines.
What is a tradeline limit? ›
Credit cards and home equity lines of credit are examples of revolving tradelines. With this type of account, an individual is given a credit limit (or line of credit) and is allowed to use any amount of credit up to the limit.
What happens when you buy a tradeline? ›
Buying tradelines can lead to a quick boost in your credit scores. Once you've been added to someone's credit card, the entire payment history of that account will likely appear on your credit reports.
Are tradelines risky? ›
Risks of credit tradelines
If the tradelines you add have a history of late payments or other negative factors, creditors can use this information from your credit history to weaken your access to credit. So be prepared to pay any tradelines on time and in-full over the course of the tradeline.
How to raise your credit score 200 points in 30 days? ›
How to Raise Your Credit Score by 200 Points
- Get More Credit Accounts.
- Pay Down High Credit Card Balances.
- Always Make On-Time Payments.
- Keep the Accounts that You Already Have.
- Dispute Incorrect Items on Your Credit Report.
Positive Impact: Tradelines with a positive payment history on accounts in good standing can be beneficial. They can Increase the number of credit lines you have, which factors into your credit mix (10% of your score). Lengthen your credit history, especially if the tradelines are seasoned accounts (15% of your score).
How can I raise my credit score 100 points overnight? ›
How to Raise Your Credit Score 100 Points Overnight
- Become an Authorized User. This strategy can be especially effective if that individual has a credit account in good standing. ...
- Request Your Free Annual Credit Report and Dispute Errors. ...
- Pay All Bills on Time. ...
- Lower Your Credit Utilization Ratio.
Credit privacy numbers (CPNs) are often stolen Social Security numbers (SSNs). Creating and even using a CPN can count as fraud. No entities have the legal authority to issue CPNs despite their claims.
How much is a legal CPN? ›
How much does a CPN cost? Using a CPN is a federal crime. Therefore, there should be no cost associated with obtaining a CPN.
What can you use a CPN for legally? ›
While you technically can use a CPN to secure a personal loan without providing your own Social Security number or ITIN, that doesn't mean it's legal. Typically, the CPN you're given is someone else's Social Security number. If discovered, you could be arrested and charged with identity theft or fraud.
Can you have too many tradelines? ›
If you have too many, this makes you look like a greater risk to lenders. If you don't have enough, you may appear to lack experience with credit. But there's no magic number for how many accounts you should have.
What happens if I add a tradeline to my credit? ›
First, you create a new tradeline, which is a new opportunity to have a positive record on your credit report. Secondly, opening new tradelines can improve your credit score by increasing your total available credit, and adding to the types of credit you have (providing you are very responsible with payments).
Are tradelines permanent? ›
Tradelines Stay on Your Report for Years
As long as any account is open and active, the tradeline will stay on your credit report. A mortgage, for example, might be a tradeline on your report for as long as 30 years. A credit card may show as a tradeline for even longer if you keep it open in good standing.
What are the cons of using tradelines? ›
Even if you have a decent credit score, for instance, you could have difficulty getting a loan if a lender finds negative information, such as late or missed payments, in one or more of your tradelines.
How long do purchased tradelines stay on your credit? ›
Tradelines can stay on your credit for up to 10 years, depending on whether they are closed or remain open, and whether they were closed in good standing or due to non-payment.
Is selling tradelines illegal? ›
The practice of piggybacking credit by purchasing authorized user tradelines is supported by the law, however… A tradeline company selling the tradelines could violate the Credit Repair Organization Act (CROA) by demanding upfront fees, for example.
