FREQUENTLY ASKED QUESTIONS
1. DO BUSINESS TRADELINES EXIST?
In a sense, yes, but probably not in the way you’re thinking. Tradelines mean “accounts” and business have “accounts” so yes, technically there are business tradelines. However, they do not exist in the way authorized user tradelines exist for personal accounts.
2. CAN I PURCHASE BUSINESS TRADELINES?
No. Business tradelines do not work in the same way as personal tradelines. You can, as a substitute, purchase authorized user tradelines for your personal account and begin repairing your credit score in that way. Then you may be eligible in the future to qualify for business loans, funding, or credit cards if the banks rely on your personal credit in order to lend to your business.
3. WHAT IS THE DIFFERENCE BETWEEN BUSINESS TRADELINES AND AUTHORIZED USER TRADELINES?
A business tradeline is an account that a business would report to a credit agency such as Experian, Equifax, or Transunion. This would include things such as business credit cards or vendor accounts. Authorized user tradelines refers to the practice of becoming an authorized user on someone else’s account in order to increase your credit score. You cannot buy authorized user tradelines for businesses in the same way that you can buy authorized user tradelines for your personal credit score.
4. HOW MUCH IS IT TO BUY BUSINESS TRADELINES?
Again, you cannot buy business tradelines… However, authorized user tradelines for your personal account can run anywhere from a hundred dollars to several thousand, depending on your needs. It is best to talk to a professional consultant in order to determine the right amount of money to spend.
5. WHAT ARE SEASONED OR AUTHORIZED USER BUSINESS TRADELINES?
This is a common misconception – first of all, seasoned tradelines and authorized user tradelines are the same thing. They apply strictly to the personal side of your credit score. You cannot buy seasoned or authorized user tradelines for businesses in order to increase a business credit score. You can, however, buy them to increase your personal credit score.
6. IS IT POSSIBLE TO ESTABLISH BUSINESS CREDIT WITHOUT PERSONAL CREDIT?
Yes, it just takes forever. Banks have slammed on the breaks in terms of “business loans.” In fact, most banks won’t lend to you at all unless you have $5,000.000.00 in revenue. Contrary to this, in a way, the government does – sometimes – create programs to help fund business which “promises” the bank that the government will repay the loan if you do not. This could be a standard SBA loan, or special programs such as those that originated during Covid-19, such as EDIL, PPP, etc. Again, talking to a professional skilled and experienced in this area is your best bet.
This is why most business funding experts have focused their efforts onunsecured business lines of credit. These lines of credit are basically a credit card in the name of the company. The credit cards rely on the business owner’s (or signer’s) personal credit, rather than the business’s credit. This is the main way the business tradelines are created these days.
7. HOW MANY TRADELINES SHOULD A BUSINESS HAVE?
TheDun & Bradstreet Paydex scoring model(or DUNS number) requires at least two tradelines, and in some cases three, before your business is eligible for a credit score.
8. IS IT LEGAL TO BUY TRADELINES?
Yes, it is legal to purchase authorized user tradelines for your personal credit accounts, however, it is not possible (or legal) to buy business tradelines because it simply doesn’t work that way. Beware of anyone telling you otherwise.
9. ARE THERE BUSINESS TRADELINES WITH NO UPFRONT FEE?
No, there is no such thing as buying business tradelines, therefore, there is no such thing as buying them with no upfront fee. Typically you’ll see websites using this term as a form of “clickbait” knowing it’s what you want to hear. For example, some companies might say they offer tradelines with no upfront fee, and what they’re really saying is they’ll help you get them and then charge a fee for it later. Sneaky, sneaky!
The true way to make sure you don’t pay upfront for fees is to use an escrow system, likeCredzu. Be sure to use escrow if you are going to buy anything in the personal or business credit or debt space.
10. WHERE CAN I GET A LIST OF TRADELINES FOR BUSINESS?
Business tradelines are accounts that you report to crediting agencies, such as Experian, Equifax, and Dun & Bradstreet. This could include things such as credit cards or vendor accounts.
