In a recent TikTok video, former financial applications product owner Amber Smith revealed a unique way she has found to make extra money by selling tradelines on her credit cards. Tradelines are essentially credit card accounts listed on a person’s credit history report. Smith explained that individuals with strong credit histories can make money by adding strangers as authorized users on their credit cards, allowing them to benefit from the card’s favorable characteristics to boost their own credit scores. The process involves adding the buyer as an authorized user for a few months, then removing them and allowing the spot to be filled by another customer.
Tradeline selling has become a popular side hustle, with websites like Tradeline Supply Company facilitating the process by matching buyers with sellers based on their credit needs. Buyers pay a fee for access to the seller’s credit history, with the price varying based on factors like credit limit and account history. While some believe that buying tradelines is a quick and effective way to improve credit scores and qualify for better loans or rates, critics warn of potential risks. There is concern that buyers could become victims of identity theft or fraud if their personal information is misused, and there have been cases of fraudsters using tradelines to commit scams in the past.
Credit card companies, like Discover, American Express, Capital One, and Chase, have not publicly commented on the issue of tradeline selling. Experts caution that while tradelines may provide a temporary boost to credit scores, they are not a long-term solution. The impact of being added as an authorized user on a credit card account is limited and may be negated by other negative factors on a person’s credit report. There is also the risk that a lender may deny a loan application if they discover that a buyer has purchased a tradeline to artificially boost their credit score.
Despite the potential risks and limitations of buying tradelines, the practice continues to be popular among individuals with poor credit or limited credit histories. Tradeline selling is not a new concept, but it has gained renewed attention with the rise of social media and online platforms. While some argue that tradeline selling is a legitimate way to help individuals establish or improve their credit, others caution against the ethical implications and potential consequences of relying on this method to boost credit scores. Ultimately, experts advise that the best way to improve credit is to manage debts responsibly and avoid shortcuts that could lead to financial difficulties in the long run.
