FAQs about Our Authorized User Tradelines | Coast Tradelines (2024)

FAQs

FAQs about Our Authorized User Tradelines | Coast Tradelines? ›

An authorized user tradeline is a credit account added to someone's credit report. The authorized user benefits from that account's positive payment history and credit utilization. This method allows individuals to piggyback on the excellent primary account holder's credit history and responsible credit management.

Authorized user tradelines are simple in theory. You add individuals as authorized users to credit cards in good standing and their credit scores increase. However, the practice of piggybacking credit becomes more complicated when it is applied to the unique nature of individual credit reports.

Authorized user tradelines typically remain on your credit report for up to 10 years. But this is not a guarantee of any particular result; the length of time that tradelines appear on your credit report is ultimately determined by the lender or credit bureau.

There is no perfect number of tradelines, but if your goal is to build business credit, you will probably want to make sure your business credit report lists at least two to three accounts reporting to business credit bureaus.

Authorized users receive credit cards that are connected to the primary cardholder's line of credit, but they are not responsible for paying off the charges they make on those cards. The person whose name is on the credit account is fully responsible for all charges made to the card.

How fast does an authorized user build credit? As long as the credit card issuer reports authorized user activity to the credit bureaus, the account will typically appear on your credit reports within a couple of months.

Positive Impact: Tradelines with a positive payment history on accounts in good standing can be beneficial. They can Increase the number of credit lines you have, which factors into your credit mix (10% of your score). Lengthen your credit history, especially if the tradelines are seasoned accounts (15% of your score).

Types of Trade Lines

These include: Revolving: A line of credit or credit card. Installment: Mortgages and car loans that you pay back over time without being able to automatically borrow again. Open trade lines: Types of credit accounts that must be paid back in full every month, such as your rent.

End the relationship early, if necessary

And even if you are only the authorized user on the account, that high balance could become part of your credit history. “If a primary cardholder runs up a high balance and intends to carry said balance for a long time, it's likely best to part ways,” says Delva-Gonzalez.

Can tradelines mess up your credit? ›

Even if you have a decent credit score, for instance, you could have difficulty getting a loan if a lender finds negative information, such as late or missed payments, in one or more of your tradelines.

Each individual account, whether it be a credit card or loan, appears as a tradeline and is reported to the major credit bureaus, which are Experian™, Equifax^® and TransUnion^®. If you open a new account with a lender, a new tradeline is created.

Tradelines are part of what makes the information on your credit report. Positive tradelines generally help you build credit, while negative tradelines can lower your credit score.

Anything can be abused, so tradelines could be illegal if they were used fraudulently. Being added as an authorized user is perfectly legal.

Understanding How to Choose the Best Tradelines

(2) the credit limit of the tradeline. All the other variables should be about equal, which includes having a perfect payment history, having low utilization (at or below 15%), the type of account (usually a credit card), and the reporting date of the account.

Often, a fraudulent account has negative data associated with it, so the removal would help improve your credit score. As for negative information, such as a credit card account in collections or a bankruptcy, those tradelines will remain on your report for seven to 10 years.

Any account that appears on your credit report is a tradeline, so the tradelines in your credit report determine your credit score. The word “tradeline” is also commonly used as a shorthand for “authorized user tradeline,” which we will explore in this FAQ page.

When you buy a tradeline, you're technically becoming an authorized user on another person's credit card account. However, unlike the traditional authorized user process, you don't know the person who's adding you to their account, and you're paying for the service.