Tradelines in a Nutshell :
You put someone on your credit card (as an Authorized User) so that it reflects to the credit bureaus for the person. That person gets a boost in credit score and they pay you for that. Just another wealth hack we use at Simple Passive Cashflow!
Intro to Tradelines
We call this “Tradelines.” And there is a market to sell these tradelines for others to use so Authorized Users (AU) can increase their credit score. So in a way, there is a feel good feeling with this where the losers are the credit card and insurance companies.
This may not be for some of the higher income earners of the Hui Deal Pipeline Club members who have families that take up most of their free time.
Why Do People Buy Tradelines?
Do tradelines really work? Who cares we are just selling it those those who are taking that risk!
How Much Can You Make?
Make $5-10K (taxed as ordinary income via 1099) with minimal effort from a Tradeline Supply Company.
A typical commission schedule is as follows:
|CREDIT PARTNER COMMISSION SCHEDULE|
|CREDIT LIMIT||CARD AGE||CARD AGE||CARD AGE|
|2 YEARS – 4 YEARS||5 YEARS – 9 YEARS||10 YEARS +|
|$2,000 – $4,999||$35||$60||$100|
|$5,000 – $9,999||$50||$75||$125|
|$15,000 – $19,999||$100||$175||$250|
This is the screen that the AU sees when they see you and other options. These are the prices they pay, minus the intermediary fee and that’s what you make.
Note: I have seen new cards get as much at $100 per AU
Tradelines are great for those people who have tapped out their liquidity and retirement accounts and could use some extra side cash.
Learn how to sell tradelines and not yourself, please don’t sell any body parts or rob a bank!
What Do You Need to Get Started?
You need a credit card that’s at least two years old (this is called seasoned line) with no late payments on it’s record. It is also recommended that you have a clean credit history with no delinquencies in the last year.
The longer you’ve held the card, the higher the credit limit ($10,000+), and the more cards you have, the better. You need to use these credit cards and pay it off in full each month. Your balance should be paid in full each month and should never exceed 10% of the credit limit. This is where an organized spreadsheet is critical. Sign up for the Tradeline eCourse to get access to a spreadsheet that I’ve made and more!
What if My Credit Lines are Less Than 2 Years Old?
How to Get Started
- Open a free account at Credit Karma to see a list of all your accounts. This will let you know where you stand in terms of credit limits, payment history, date opened, current utilization, and each account’s reporting date.
- Call your credit card issuers to increase your available credit. The amount of commissions you receive from an AU signing up increases with a larger credit limit and longer credit card age. Note that most people will get approved for $5,000-$15,000 per card. I have been screwing around with credit cards since my travel-hacking days since the early 2000’s and have some nice limits already so I am going for the moon! ($30,000+).
- Research companies brokering tradelines. Go over the account verification process with them. For good reason, banks don’t really like this little muse. I’ll give a warm introduction to the company I use to those who sign up for the eCourse!
Q: Why haven’t I heard of this before?
A: Wealth hacks and financial topics aren’t commonly talked about, unless you’re avidly searching online for it or if you’re hanging out with the right group of people. You can join this free investing club for like-minded, hard working professionals to learn other wealth hacks and gain passive cashflow.
Q: Why aren’t more people doing this?
A: This is probably similar to why people don’t pursue financial independence. They hear about it, think it’s nice, but they DON’T TAKE ACTION. This is why I made a tradeline course to help people take that first step and walk them through the process.
The course includes:
The step-by-step process on:
- Which tradeline company to use (with an introduction to them via email)
- Things you need to do to protect yourself
- How to choose an authorized user
- An exclusive tradeline group (where you can interact with others doing the same thing)
- and more!
This is something that I’ve been working on or past year, I have a little bit of a confession. This is totally trading time for money in a way but it can be pretty lucrative or just playing around in your computer adding authorized users on your account. So first, what is tradelines if you guys have credit cards, there’s a function on your credit card called add an authorized user So what authorized user is this person pretty much piggybacks on your credit. And now when the credit bureaus check, right it, it can also report on your authorized user credit, the authorized user, or the person piggybacking on your account gets a boost and credit score, and then they pay you for that. So that’s where this becomes a nice little way of making some side change. I’ll start with you on the bottom right there, the trade line broker company, they’ll probably pay you $75 to $500 per authorized user on your card. And usually you have to have a person on your car for a couple of months. So you can get pretty good amount of money on each card that you have. We’ll get into a little bit of the requirements a little later. But for the most part, you have to have cards that are older than a couple years old, and no more than $5,000 of credit limit. Some of the bigger cards, you can get some $500 per authorized user, there’s a straight line broker company charging the authorized user, I’ll be a bigger fee. So they’re probably trying I’m about thousand dollars for pretty big card, that’ll bump their credit score, maybe 200 points, and they’re paying you maybe 500 bucks. And we have I don’t know what the commission rates that they’re they’re doing but they definitely play a role in all of this. The authorized user, like I said, they’re supposedly getting anywhere from like a 50 to 200 point bump on their FICO score, whether they get it or not, from our perspective, who cares, right? They’re paying the broker for that service. The way I look at your strip insulated there, the chase, Barclays Bank of America, discover Capital One, these are all the banks that issue credit cards, and they have this FIFO system, which we’re sort of hacking here once a month, the credit history gets reported to the authorized user, why would these authorized users buy trade lines and why would they they pay $502,000 to these brokers first a lot of them they want to get a credit card approved to get the best rates on the loan. You know, I mean, if you’re sitting at a 600 FICO credit score, you’re going to get the best score. I think Believe it like 656 ad. And that could mean a difference of paying like a half a point quarter of a point less, which we all know that could be a lot of money. At the end of the amortization schedule. A lot of these guys are more sophisticated people, in my opinion, from what I see they’re not broke people trying to get their credit score from 300 to 450. So they can go out and get a car loan. They’re interesting that a lot of them are business owners and they’re trying to just optimize their credit to get a massive business loan. And then some other things you know, they’re trying to reduce their car and homeowner insurance costs because credit score plays into that. And some of them are on the opposite end. Like I said, they’re trying to get debt consolidation solutions to they’re paying a little bit money to kind of get that credit score up. Whenever you see a new concept like this. I always want a little context. So why the heck is there this authorized user thing like a 1960s everybody was at war like the stay at home housewives, they needed to go buy stuff and they needed credit cards. But back then it was just a different era, women didn’t work and they needed to build their credit. So there was this little loophole created where housewives could piggyback on their husbands accounts. And that was where this whole authorized user thing began. So there’s a logical need for this today, what you’ll normally hear is like the kids will go on their parent’s credit card to bump their credit score. That’s a common one. But as we do with a lot of these financial acts, we live in the area of the gray. So an authorized user can also mean an employee and if you take even further it can also mean close contact. I’m just citing what you click on the box when they ask you who the heck is this person, close contact relative family member or other. I’ve always done a lot of fun stuff with credit cards back in 2012. When I was still in college at the library, I was also learning about all these 1% credit cards and all these balance transfer offers. I had so much fun doing this. And this is really where I learned about all this financial stuff. There was these things called Apple dramas back then where you could apply for like eight or 12 different credit cards all in the same like four hour period, and you’re able to rack up 80 or $100,000 of credit card debt. And then you were able to take that money and actually write yourself a check, zero percent balance transfer for like 1224 months. And so I did that, and I think I had like about $80,000 and I was able to stick that in a high yield checking account back then it was like at 6%. So that was a lot of money for me back then zero percent balance transfers have gone away in the last decade, but I still had all these cards, which was amazing because now they’re all season cards over two years old, much more than $5,000 a credit per card and these were great opportunities to put into my tradeline roster. And I’m thinking a lot of you guys have sort of the same thing to know how much you get paid for these cars. And here’s a little chart on what you typically will get for the most part. I don’t think the Trade line brokers will deal in anything less than 75 bucks or below, you know, these ones they don’t really want to play around with. And I don’t know, you know, a lot of you guys are more on the high net worth side, I don’t know, if you really want to screw around with this stuff either to add and take off an authorized user takes about five minutes, but time is money, right, we’ll kind of get into some of the downsides to that there is a bit of a risk. Personally, I think it’s an acceptable amount of risk for how much money you can make doing this. So I have a bunch of cards that are, you know, newer that are 75. And most of them are kind of in the hundred $50 range. I had a few that were like 303 50. I have a friend she’s got like this, I call it the unicorn card or it’s like every time that it gets purchased, it’s like 500 bucks, and she doesn’t even want to tell me how much credit limit it is. She’s embarrassed but she says it’s really old. Take a look at your credit cards and see how much you can kind of make out of this. Again, the way it works is authorized user goes on your account for a couple of months and then you take them off. And most cards, you can have two authorized user per card. So if you do the math, it’s like one every month one of these things every month on average, some of them like the Barclays, you can do like five or six at a time, it’s pretty cool. question here is this fief per month or this flat fee. So let’s just say you had a car that was 15 grand credit limit, and it was got a back in the day, 10 years plus, and the broker is telling you, we’re going to give you 200 bucks every time an authorized user signs up, likely the authorized user paying the broker, maybe three or 400 or 500, I don’t know. But you get $225 here after the two billing cycles typically go around. So the broker will tell you, hey, add this person on this account. Here’s all their social security, birthdate, address name, you add them on your account. A lot of times this can be done through your credit card portal. And then in a couple months, you get another email from the broker saying hey, every day All good, you can remove them now just kind of what I had personally, you can see the different card issuers, Chase city Barclay city, Capital One, and I’ll just mention this there are a few landmines in this thing, nothing too dangerous. But for example, I would stay away from Chase. I got all my cards canceled from Chase. That was not fun. But it was fun while it lasted because look at this card number 11. Man, like, it’s so cool when you get like this email and saying, alright, you just cashed in at 325 bucks. If I were to do it again, I would only do one authorized user at a time and you can tell the broker how much or how little you you want to play this aggressively or not. And that’s the other thing you can have. You can play around with your wife’s credit cards to get approval for that. I’m going to be in big trouble of her chase cards gets cancelled, which is why I’ve moved down to one authorized user at a time but I probably will stop doing that because it’s getting a little annoying chases difficult Chase, you have to call them so if you guys are paying attention. Yeah, I have to use my girl voice. And Nick like I’m her, whereas like Barclays and capital ones are so easy takes like two minutes, you just go online, you just click, click, click, cut, paste, cut, paste, you’re done, it chases the big landmine and I have a another Facebook group dedicated just for this tradeline hacking. And in there, we have a lot of conversations on like, what are the best cards to get to me were like, Oh my god, you know, Chase cancelled all my cards, you know, you will hear about stuff like that in there. So I made 10 grand doing this in my 2019 year, I always try and guinea pig things first and see how things are. But yeah, I made 10 grand doing this. And I don’t know how many authorized users there was maybe but if you add all that up each, maybe 10 minutes, 15 minutes each. I mean, it’s pretty good hourly rate. Here’s the way I look at it. A lot of us have turnkey rentals or had them and you’re talking about a couple hundred bucks a cash flow a month and you have 20 grand in the deal and you have this big liability and it’s a big pain in the butt when things go wrong. Here’s something you’re making passive cash flow and you’re not gonna really get sued over this thing you know in some no one’s gonna trip and fall you don’t have debt out, do I think tradelines are gonna be around forever? No, maybe not. But I would say you know, this is a nice way to make 10 grand on the side for some of you guys you guys don’t care. This is chump change. But maybe this is a cool thing for your like your kids to do for summertime jobs. Some questions here why chase Council, your cards Chase is actually one of the better companies in terms of audits, I believe, and just they got their stuff together. And I feel like they just got the comp flagged whereas all these other companies just don’t care because technically you have to kind of know these authorized users. I mean, I was calling them employees. That’s not what this stuff is intended for. Right? It’s not intended for these guys to boost FICO credit score by paying for it. A FICO credit score is around to tip off creditors and essentially the rest of the world credit worthy somebody is and I don’t know why a credit card company, why do you even care if people were doing this, but I think from time to time, it just looks suspicious. And that’s why I got flagged and they just cut all the cards up and they just canceled my account. I did not get back with Chase there any way that this could affect your credit score. I don’t know if I have that slide in there. But I was kind of monitoring my credit score through this, but there was not really any adverse impacts from what I could see. I mean, think about it. Credit Score is made up of your utilization rate, your length, the cards, you’re not playing around with any of that you’re just having people piggyback. We’ll get more into the security of this ways to do this safer, but like the card never gets to the authorized user and never goes to Wisconsin or Kansas City or wherever these guys live. While these guys are in Georgia for some strange reason. But the card never goes out to them. It always comes back to me at my home address and I never activate it and I set alerts On my account, you can set all kinds of strange alerts up. Like if there’s more than a $1 transaction, I get an email or text. If you’re that paranoid, I would encourage you to do that. I get suspicious charges on my cards all the time. And the way I look at the world, hackers are always out there. They just think the best practice is just checking your credit card statements on a monthly routine just to check. So
laying on that car from Barclays,
you had 22 authorized users throughout the year, but how many of them you had all at once? How does that work? So Barclays is nice because they allow you to have six authorized users. So that’s why that card is just turning right. Most of the other cards, they have just allowed to, at one time, talk them a little more of the security. I had another guy that was doing this too. He’s a more of a paranoid fellow. And what he did is he wanted to really poke holes at this. So he went into a bank, Citibank. And he kind of posed as the authorized user to see if he could get access to the account and get his own card and he came back and He said, Yeah, he failed at doing that he realized that the account owner is really the only person who’s going to get x, that stuff. Even if you’re an authorized user, you’re not getting any of that. So here’s the procedure, I’ve created an eCourse on this whole thing, you guys will get all of this stuff as members. But roughly you guys have heard of Credit Karma. It’s like an app, I think you have to put in social security number and different information, but it’s kind of a cool service. And I think they’re getting bought out because it is such a great service, but it allows you to get all your credit cards on one app, and it constantly screens for suspicious activity. But what you can do is you can put all your credit cards in there, and then you just give that login to the trade line brokers and the way I look at it is like there’s not really any sensitive information if you just give them the login to the Credit Karma account. I could be wrong, but I feel more comfortable doing that than giving them every single login to every credit card that I have because the trade line brokers they want a roster of your cards so that they can give you a pricing less and then put it on their website and Get it for you. So do that figure out what you have and then increase your credit limits. And this is an optional, I did it. It took me a few days to do but I caught up every single credit card company I had. And there’s a lot of information on this on the internet. How do you talk to the credit card company? What do you say to them, but you’re trying to ask for increasing credit limits. A lot of this you don’t get to talk to a human being you just go into a website portal, you just type in some information. A lot of you guys live in the gray here, it says household income, which household is your determination, your house, your brother’s house plus your dad’s bus, your sister’s bus, their cousin, I mean, that’s between you and your credit card company and how aggressive you would like to be. And then once you maximize those credit limits, then you engage with tradeline brokers. And then another role that these trade line brokers have is they’re screening their applicants they’re supposed to be doing like background checks on their credit reports already just a scene that is just not a shady person which is not 100% accurate. I had another buddy that there was like an order that came up. And he was just like super shady. He just told the brokers like, yeah, we’re not gonna do this one, I’m not cool with it. And then the brokers were cool, you don’t have to fulfill the order for some reason you don’t want to do that. I guess it’s kind of like an Uber driver. They don’t want to pick up a certain client. I don’t know, I don’t I never drove driven over. But it’s something like that. And then so once you get an authorized user order, and usually they’ll just email you or send you a text, you go into your credit card portal, so your city COMM And you log in and then you find the error where it says add authorized user, you put in their name, you put in their address, phone number, Social Security, data birth, and that will usually tie them as an authorized user. And after two or three billing cycles, you’d be notified to remove the authorized user. Yes, so cards that are at least two years old, are needed. Again, on the left side, those are the banks that will issue cards, and this is getting a little more advanced, but I try to build the pipeline for the future. So I’m trying to spread out get cards for different banks don’t have any bank of america ones I don’t have. I don’t think you can do this with American Express, which is a big bummer, because I got a lot of American Express, discover, I don’t know if I can come and discover but it’s just good. Just in case another chase fiasco happens that you’re just not all with one person. And I’m more in a stabilized mode. Just like with the syndications. I’m just going into a few deals every year. Like with this stuff, I’m just picking up maybe a couple credit cards a year just to continually build the pipeline so that two years in the future when these things are seasoned, I can add it to the roster. Plus, it’s fun, it gives me a reason to get those travel hacking points and I don’t know why it’s so entertaining. I find it fun. You know, when you get new credit cards, it will ding your credit score but me personally, I don’t really use my personal credit anymore since everything I do is commercial and not tied to me personally. So there’s really no reason for me not to do this. You might not be in the same situation. Some things to be aware of Somebody cards will charge you an annual fee. Try and stay away from those, there are still some balance transfer offers that will give you 12 to 24 months of ability to put purchases on that and not just pay off a minimum, but you don’t have to make payments to the larger sum. It seems like I’m always doing that I got married like a year ago. So I put a lot of purchases on that thing, just stomach it a little bit better than just had to pay it off this past month, but you got to get credit cards. So you might as well get the best credit cards with the best perk, don’t let multiple trade line companies handle one card, some won’t do city, for example. So things keep changing. And again, this is what that other Facebook is all about. That’s the stuff that I can’t really put into an ecourse or things are always changing. They don’t change that much. You know, every six months, there might be something they won’t accept city cards anymore. They won’t do discover cards anymore, or somebody will come up with some fire dance like chases taking everybody’s cards that way on the last sentence about not using your personal and your business cards for this and your low rate on that. You can’t use business cards. For this stuff, that was a real bummer for me because back in 2002, when I was doing this stuff, man, those business cards gave me like 20 grand credit limit some 20 year old kid in college and no job 20 grand, crazy. You can’t use business cards for this stuff. My understanding, it’s because you can’t add an authorized user on a business account and have it reflect personally back on their cycle. So has to be personal. Well, you wouldn’t use yourself personally or you use for your daily expenses for this. I mean, it depends on what you want to do, right? There is a small chance that you could get an email saying, Hey, we’re going to take away all your cards or that card. Right? What I do personally, there are a few cards that I use a lot like my Costco car, and I like my Citi double cash card. I think on one of them, I just do one authorized user at a time play a little safe as opposed to revolving I think the Costco for some strange reason you can’t add authorized users for some strange, weird reason. So as you can tell, there’s a lot of nuances to this thing. It’s not that difficult, you’ll get a sense of it, but again, you know that these are options Comments display here some of the conversations we’re having in this group these nuances about it. And then I have a little spreadsheet of where I keep and when an order comes in. I for some strange reason, just because I’m paranoid, I want to hold on to their social security numbers just to have it in case you don’t know what might happen. I don’t know if they if these people start screwing around that I’m going to show up at their doorstep or whatnot, but I just document this stuff for myself. Let me know if you guys got any questions and there were a few of them that I missed here in the chat box. So is this taxes earnings? I think it is. I do believe I got a 1099 at the end of the year for one of these guys. So it is active income and on some of the credit card 2% or 1% cashback that stuff isn’t taxed, but I’m pretty sure that this stuff is tax.
I was nervous, I was gonna have my credit lines cut off just because I do think they do have value in terms of if you get the card turned off, it’s gonna affect your credit score, especially depending on that Have a credit and the extent of the line. And if you know you’re buying houses and put mortgages on them, I didn’t really want to take my credit to take a hit. And for making the few hundred dollars every few months, I just didn’t do it and instead was just opening up credit cards and making payments to get points so that way, you know, you’re getting essentially $1,000 for opening up for just opening up a credit card and using it for more than a couple hundred and potentially getting shut down. Yeah,
no, no, I mean, this is a good conversation here because you and I are a little bit different, right you’re still doing loans in your name where you need your personal credit and there can be a risk that if they cut a car that can be a key card for you.
I don’t think that it’s going to be as complete global failure
and that’s why I advocate for getting different cards. I think chase we know about it and I would just play it safe and but as of now none of the other banks are doing that and they’re definitely not cutting off all your credit cards with that one bank but I think the way you’re playing it what you’re doing is awesome, right? Like you’re you’re deciding that your highest and best use for this stuff is buying investments and that’s what I don’t want anybody to lose sight of. This is just for the people who have made that much money eliminating thing as money liquidity. I don’t really need my personal credit anymore. It doesn’t matter for me. Everything I do is syndications and when I do sign on debt, they don’t care I think that whenever we kind of do something like this you want to look at the both sides of it. How many credit cards do you think you can apply now all at once without sinking your own credit score so as I was talking about back in the day, you could do an apple Rama but as I understand now from these point hunters forums is that’s not the case anymore. If you apply for a credit card now and you had a another app playing at the same exact Second, it doesn’t matter. It’s all individual pools. As you can see, they filled that loophole. That’s why I would say go with a sniper approach apply for the right cards and only as you need them I’ll do like maybe one or two a year every six to nine months just because I’m bored. Whereas before I was applying for everything right That’s not the way to do it anymore a question to answer this, what do you use for the one usually use and pay off or have the cards just for this purpose. So again, my personal situation is I had a lot of cards that were just collecting dust. So it’s very good for me to do this. But I used to use the Swiss Army Knife of credit cards method where one card is for groceries, I use the American Express, I get 6% on that one card is for general stuff, that’s the double cash card. One card is for Costco and eating out that’s the Costco card. I still do that. But for most people who have a life, they’ll consolidate to one or two cards. So if you really want to keep those cards and keep using them, maybe just take them out of the authorized user rotation just don’t sell them or maybe just go to one authorized user at a time. What is the max credit card commission limit you heard of persons getting like 500 bucks each time so it must be over 10 years old and over 30 to $50,000 credit So
yeah, if you got a
Chase Sapphire preferred card that is a $45,000 credit limit. That’s a pretty sweet card. I just hope it’s better over the years that you’ll pay off that $450 annual fee and like a couple months, that’s kind of my credit card bonuses are great, but a lot of the cards you have to pay an annual fee in the second year on the credit card bonus, you know, spend $3,000 to make 20,000 points goes away after that initial thing. I think this just sweetens the pot for doing all that stuff. Another question, if you open a couple credit cards this year, you cannot use them this year. That is correct. Most of these brokers, they don’t want to touch the card unless it’s over a couple years because think what’s happening here, the authorized user is going to go on your new card, they’re not going to get much of an impact on their credit score. So that’s the reason why oh yeah, good idea. If yes, if you do have some of those sweet bonus credit cards that you signed up for after that it’s 100 to $200 a year you can usually call them call the credit card company and you can can beg them kind of help people lower their their cable or internet bill kind of sneaky way to waive the fee for the next year or just downgrade the card. So it goes to no fee level. One of them I’m thinking of is like the saver card, I think you get like 4% a year on purchases at restaurants, but it’s 100 bucks a year, but they have a 3% one that’s no annual fee on that one. That’s another way and maybe you let it season for a couple years. And when it grows up, you can put it in the authorized user rotation. So there’s loads of different brokers. And if we do this, you’ll you’ll introduce us to the best one how many of us I use a couple and I can connect you with the ones and that’s what the Facebook group is for. Right like I don’t want to say on recording like what it is because if something goes down, people always point fingers but that’s the message is like this stuff is fluid, but it’s not that complicated. And to me, I think it’s so fun when I get an email saying that I just made 200 bucks and I like to go out to nice restaurants. Once in a while, and it’s nice to know that my little hobby trade lining pays for it, you know, this type of thing. There’s a need for authorized users. And I don’t see them getting away from this type of stuff. I think it’s a federal law, why they came about with the authorized user. But because all these guys were going off to war, their poor wives couldn’t buy anything. I forget which act it was somewhere in Congress, they created this thing where there was this loophole where you needed to make credit card companies needed to allow authorized users for exactly this purpose. Now, obviously, we’re kind of stretching that need and there are credit card companies able to police it a little bit, but I don’t see this thing going away anytime soon. And kind of end things here. Just don’t be a bonehead with this stuff. If you’re a little skeptic ease into it, maybe just do one authorized user per card at a time and take it on, take it off. Something I’m a little bit nervous about is like when I take off the authorized user, I don’t take them off right away. Like I’m not like clockwork, every time Two months, I kind of sit on it a little bit. I don’t know if that matters. But to me, it’s an acceptable amount of risk for excessive mahna mahna reward. So that’s why I do it. But how many loans? Usually they ask you to keep them in before two months, two or three billing cycles is what they say. If you’re a little more conservative, I would say leave them on there. I think that’s what flags the credit card company is that they see, well, this guy’s got like people turning in and out, like, is this a business? Are these employees of his right, because that’s another use for those authorized users is I have a business and I might want to give a pro card to one of my employees. So sometimes I’ll tell them yeah,
Bob didn’t work out. I was
fired. Oh, it’s COVID-19. This month, I had to fire all my guys. You can you remove all my authorized users.
You could say that’s lying, but I think it’s all in fun.