We all want to make some extra money right? However, we all have very limited time with work, family, friends, housework and the list goes on. I know for myself I barely have time to shave let alone spend more hours working. Plus, work sucks, something most of us can agree on. That said, wouldn’t it be nice to have a way to make some extra money without having to put multiple hours a day into it? That’s where selling tradelines come in and I am here to give you the low-down on exactly what it entails.
First, let me start with explaining what a tradeline is.
A credit report tradeline is simply an industry term to describe a credit account. If you have credit accounts, you therefore have tradelines. Tradelines come in the form of credit cards, lines of credit, car loans, mortgages, and payday advances. Here at SplendidCredit.com we focus solely on credit card tradelines.
Essentially, you are adding authorized users onto your credit cards, temporarily (for a month or two, before you remove them), and getting paid to do so.
Wait What? How does it work?
As you know, many things in our country run on credit, and if you have good credit, you are charged a lower interest rate when you finance things. If you have bad credit, you are charged a higher interest rate, and pay more money for things.
Due to this, people are often looking to temporarily "boost" their credit score. For example, let’s say someone is going in to buy a car, if they have a bad credit score, they are going to be charged a high rate.
"While the average interest rate for borrowers with good credit is between 4% and 5%, subprime borrowers will pay an average of 10% to 13%, depending on their credit score." -Bankrate.com
Instead, they might pay $1000 (or whatever--all the numbers in this post will be illustrative) to a credit boosting company, such as us, who act as the middleman bringing together people who have poor credit to people with credit cards in good standing (no missed payments over 12 months), with a long history (1 year or older) and have a balance of 30% or less to the credit limit. That company then turns around and pays the cardholder for adding this person as an “authorized user”.
I know where your head is at right now and the answer is simple. The new authorized user never receives a card, and they will not be able to spend any money on your card. They can’t even call the bank to access your account due to the banks security measures for account access. The banks always ask things like confirm billing address, last 4 of the primary account holders SSN (Social Security Number), secret word or phrase, mom’s maiden name, etc. The AU never has that info so they never have a way to access your account.
Getting back on track to how this works. After a few weeks, your credit card statement closes, the credit card company reports to the credit agencies that this individual is an authorized user on this card, which now, due to the amount of time the card has been open and the extra available credit, boosts their score. They go buy the car and save a bunch of money on interest. You got paid, they got their whip, and everyone is happy as a clam (not sure why that’s a saying but it sounds good because clams are delicious).
A month later, you remove that person as an authorized user and you repeat the process with a new person. The cycle goes on and on giving you some amazing passive income every month for virtually zero effort.
Is this real? It sounds too good to be true.
Yes. It's definitely real, and it's paying out many thousands of dollars every month. It's not a scam, it's a way to use your credit cards to generate massive amounts of money for almost no work, legally. Our clients make an average $100 - $1,500+ monthly.
Okay, so, how much can I make?
Well, every person is different so depending on the card, you can sell 2-5 trade lines (authorized user spots) every month. The amount you make depends on your card: how old it is, and how large the credit limit is. The older it is, and the larger the credit limit, the more it helps the AU, and the more you get paid.
For example: You have a credit card with a $15k limit. A person looking to build their credit would pay roughly $400 for your tradeline. With us, you make 40% of that price. That means you make $160. Now lets say you sell 2-3 tradelines per month (which is pretty standard) you would make $320 - $480 a month. That’s pretty good money for roughly an hour of your time each month. At least that’s my opinion but I am also bias as I was doing this before I was working with SplendidCredit.com.
To go one step deeper using the above card example, say you have that Wells Fargo card (3 spots), Bank of America card (2 spots), Barclays Card (3 spots), Citi Card (3 spots), and US Bank (2 spots), and they all had 15k limit, and were all the same age as your Wells Fargo card example above.
If you sold all of those (13) spots in a month, you'd make $2,080 (13 spots x $160/spot) every month, or $24,960 annually.
Now imagine you had more cards than those five, or that your spouse also has cards that you enroll... The numbers can get very silly very quickly.
As a bonus with us is that we offer referral commissions so you can easily make much much more!
Something we always tell people is to not rely on this income, rather just enjoy it as some months are slower (less people using credit, it's cyclical) so you might not make as much, some months you'll fill up everything.
What credit cards can I use?
Pretty much any credit card you have you can potentially sell. There are so many out there that it’s best to just sign up for a free quote and see if your card qualifies.
There are times that cards issued tend to not post correctly to the buyers credit report (e.g. you add the AU, but it doesn't show up on their credit report right for them), in that instance we refund the money to the buyer and you do not get paid. To me it’s really not that big of a deal though cause it didn’t take much effort to add them and most likely I got paid from the ones that did post.
There are always Concerns and I want to make sure you have all the info needed. Thus I made a list of major concerns we receive.
Is this illegal?
Not one bit. Adding an authorized user is backed by the Fair Credit Reporting Act (FCRA) and explained in most paperwork that comes with your credit card. The process itself is an option available to all credit card holders and has often been used for children, relatives, and close friends. It's the same idea of having a credit card with your employer.
However, we are not lawyers so for legal questions we suggest you consult an attorney.
What if the Authorized User spends a bunch on my card?
Not possible--they never get a copy of the card. It's sent directly to you, to the billing address on the account. Even if they call for a replacement card or something, they won't have the information needed to "verify" your account (like last 4 of your social, or your DOB, or anything about you), but further, even if they could, the replacement card is also is sent to your address. As an authorized user, they can't change any info on the account, nor get a card shipped to them. They'll be on the account for a month or two, and then removed, with no access to do anything on the account, nor any account information, nor the ability to spend any money.
Do I need to have a good credit score?
No, not at all. Your credit score never shows up on their account, at all. Just the card(s) you enroll need to be in good standing, with no late payments. The longer they've been open, the more likely someone is to purchase a tradeline on them. So, the cards need to be good, but your credit itself doesn't matter.
What if the credit card company finds out? What if my card gets shut down?
That's the big (potential) drawback to this: your credit card company might close the card. I won’t lie, we have seen that happen but it’s less than 1% of all our cardholders. Chase is the only one I'm aware of that does this, so be careful with them, but the other companies, if they shut your card down (which is rare) will likely off you to open a new account to issue you new credit.
Will this affect my credit score?
It doesn't affect your credit report, or score, at all. Having an Authorized User, or not, is not a criteria on a credit report/credit score.
If your card gets shut down, that could have an impact on your score (from having less "available credit"), however it won't affect it from merely being closed--the card, even when closed, still shows up on your credit report (for I think 10 years?), and the reason closed is the same as if you called them to close it, there's no hit as to "why" it closed. Just the potential small hit from amount of available credit (e.g. affecting DTI “Debt To Income”).
If your card isn't closed though, there's obviously no change to your credit score. In fact, your score will likely go up when you first start from calling and raising up your credit limits.
Isn't this unethical?
I guess that depends on you. My opinion is that our credit card system in the U.S. is unique. The credit card companies make billions each year on people paying interest. I'm not too worried about them.
If you feel it's unethical, that's fine. It's definitely not worth doing anything you feel is unethical simply for money. Steer clear, in that case. :)
Okay, so what do I do to get started?
Before you sign up your cards, you may want to call each of your CC companies to increase the limit on your cards you have (higher limit = paid more for the trade line).
Then you just add users when you're instructed and given the information for the AUs.
So how much actual work is it? What does it actually look like, step-by-step?
First, as above, you sign up your cards you want to enroll (remember, you don't send them numbers or anything, of course, just which cards you have--the issuing company, limit, and how long it's been opened).
Then it looks like this:
You get an email that a user needs to be added.
You go to the website of your CC company, and add the Authorized User online (Time = 2-3 min)
Somewhere around the 20th of every month we will send you what you earned and instruct you to remove your AU’s from your cards. You then call up your CC companies and ask to remove the AU (Time=5-15 minutes, depending on how long you're on hold).
Total amount of time = ~10-60 min. depending how many cards you have to call in and remove AU’s.
How do I report it to the IRS?
Just like any other income, when you file your taxes you disclose the money you made from us.
This sounds pretty awesome, how do I get started?
Go to our homepage or click here to fill your info in. If you have further questions just click that blue chat button in the lower right corner and a real human customer service rep will answer anything you can throw at them. Hell, ask them how far Pluto is in meters and I bet they will give you a solid answer. Tell them I told you to do that.
If you have made it this far I applaud you. I hope this helps you on your path to financial freedom.