“Renting someone else’s trade-line could be very beneficial, but read the risk before spending your money”

 

The trade-line renting scam comes in a few different flavors. Typically it is a service which is facilitated by a broker or a middle man who, for a sizable fee, will connect you with a stranger who has older or seasoned credit card accounts which are in good standing. Once you pay your fee, the stranger adds you onto their credit card account as an authorized user. The middle man pays the stranger with good credit a small portion of the fee collected from you and then puts the remainder in his own pocket.

It is arguable whether or not the practice itself of paying a stranger to add you as an authorized user is illegal. However, if you apply for any new loans after paying to be added to a stranger's credit card account then there is no question that you could run the risk of being charged with bank fraud. Plus if you applied for your new loan over the phone or via mail, you may risk being charged with mail fraud or wire fraud as well.

Additionally, FICO's newer credit scoring systems have logic designed to detect piggybacking scams. As a result, even if you pay to be added onto a stranger's account, you might receive no benefit from the trade-line whenever a lender pulls your credit scores. With so many legitimate means of repairing poor credit, it simply is not worth the risk of renting a trade-line in an attempt to speed up the process.

There is no question that being added onto someone else's credit card account as an authorized user has the potential to help your credit scores. This can help out tremendously in cases where the person who adding you as authorized user has a “seasoned credit history” with a hefty credit limit that is being used responsibly. I have seen clients scores jump up as much as from a score of 489 to 702! Just keep in mind before paying “renting” someone’s credit history, if the renter is not in your parents or closely related to you, you run the risk of this not helping you at all ,Especially with renting where you are simply just added on for (usually around 60 days) and then taken back off. It is my opinion that building your own credit is best 1st practices. For a free consultation please call (866) 202-0113 ext 1. Call the Experts! 

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