Short answer
An authorized user tradeline adds an existing credit card account's history to your credit file. It can help some people with thin or young files. It will not erase late payments, collections or charge-offs, and no honest seller can promise a score change or a loan approval. Below is what to check before you spend money, and how to tell whether a tradeline is likely to help you at all.
First: will a tradeline help your situation?
Answer this before you look at a single listing.
It may be worth considering if:
- Your file is thin or young (few accounts, or short history).
- You have no recent late payments, collections or charge-offs.
- You have a mortgage, auto loan or refinance coming up and want to add older, positively reporting history.
It is unlikely to help if:
- You have recent late payments, collections or charge-offs. Those items can outweigh an added account.
- Your utilization is high on your own cards. Paying those balances down usually does more.
- Your file already has accounts older and with higher limits than the line you are looking at.
If you are not sure which group you are in, talk to a person before buying. At EzeCreditServices that is Matt, Kathleen or the rest of the team in our Raleigh office. If a tradeline is not likely to help, we will tell you.
How a tradeline actually works
Understanding the mechanism protects you from most bad purchases.
- A cardholder with an older account in good standing adds you as an authorized user.
- The card issuer reports the account to the credit bureaus on its own schedule, usually after the monthly statement closes.
- The bureaus update your file. The account may then appear on your credit report.
- The standard term is two reporting cycles, normally at least 60 days.
Two things follow. First, timing is set by the card's statement and reporting dates, not by the day you pay. Second, what the account does to your score depends on the scoring model, the lender and the rest of your file. Nobody can know that in advance.
7 things to check before you buy
1. Bank
The issuing bank determines how the account is reported and how much it matters to the lenders reading your file. Inventory should name the bank before you pay. You can browse by bank: American Express, Chase, Citi, Capital One and others.
2. Credit limit
Higher limits generally mean lower reported utilization on the account. Compare against the limits already on your file. A line that is smaller than what you already have adds little.
3. Account age
Older, seasoned accounts add more history. "A powerful, aged tradeline" tells you nothing. A number of years tells you something. Insist on the actual number.
4. Reporting date
This is the date the issuer reports to the bureaus. It tells you when the account could first appear. If a seller will not show it before payment, treat that as a warning.
5. Order-by date
Each line has a last day to order so the purchase can be completed before the reporting date. Missing a card's cycle can delay reporting by about a month. If you have a closing date, count backward from it and leave room for bureau updates. That is a reason to start early. It is not a reason to rush.
6. The written guarantee, and what it covers
Read it. Ours is on the Guarantees page. Every line is guaranteed to post in the next reporting period listed for it (if bought at least 5 days before the reporting date), to post to at least 2 of the 3 bureaus, to stay for two reporting cycles, to have perfect payment history, and to carry utilization of 10% or lower, backed by a full refund. What no guarantee can cover is a score change or a loan approval, and anyone offering one is offering something no one controls.
7. Who answers the phone
Can you reach a real person with a name, before and after you pay? Is there a physical office? When something goes wrong, that matters more than anything on the website.
Price and extensions
Prices vary with the bank, limit and age of the account. Very cheap lines are often cheap for a reason, such as a low limit, a young account or unclear posting terms. Check the current inventory for actual pricing.
If you need more time on a line, extensions are available one reporting cycle at a time for half the original purchase price.
Red flags
- Hidden inventory. If you have to "call for details" about the bank, limit or reporting date, ask why.
- Score promises. "Add 100 points" and "jump to 700+" are not claims anyone can back up.
- Countdown timers and "only two left." Real urgency comes from a real order-by date, not a clock on a web page.
- CPNs or a "new credit identity." Credit privacy numbers sold as a fresh start are a fraud risk, and the FTC has warned consumers about them. Stay away.
- No written guarantee. If the promise is not in writing, you do not have one.
- "We'll fix your credit." Tradelines add positive history. They do not remove negative items.
What happens after the term ends
At the end of the term you are removed as an authorized user, or you renew. What the account does to your scores afterward depends on the bank, the bureau, the scoring model and what else is on your file. Do not assume a benefit stays in place, and do not buy from anyone who says it will.
Questions people ask
How long until a tradeline posts?
It depends on the card's statement and reporting dates. After the issuer reports, the bureaus update your file. Your order-by date tells you the latest day to buy for a given cycle. See How Long Do Tradelines Take to Post?
Is buying a tradeline legal?
Becoming an authorized user on someone's account is a common, legal credit arrangement. Practices differ widely, though. Primary tradelines, CPNs, and anything that misrepresents who you are or what you owe are different matters. If you are applying for a loan, be honest on the application. When in doubt, ask the lender or an attorney.
How many points will my score go up?
We do not guess. Scoring models and lenders vary, and your own file decides how much any new account matters.
Do I need more than one?
Not necessarily. Compare the line against the accounts already on your file. If it is not older and higher-limit than what you have, more lines will not change that.
Where to go from here
If you have a deadline, bring it with you: your closing date, your application date, the lender's name if you have one. We will look at the available lines with you and tell you honestly whether one is worth it. Call our Raleigh office at (919) 200-0484 or view current inventory to see the bank, limit, age and reporting date on every line before you pay.
A tradeline is not credit repair and does not guarantee a score change or loan approval.