Buying Credit And Tradelines? Is This Legal?
I have loan clients recently asking me about the Ads they are seeing about people selling credit and tradelines.
Basically it seems to work like this:
You pay $400-$700 per tradeline.
This person has seasoned (24+ months of credit card history per card) and they add the cleint as a extra card user on the account.
The client now has the new seasoned tradeline and credit history added on credit report and the benefits of the history....
Supposedly this will instantly enhance the score and make a tradeline to use for lenders.
Sounds like fraud. What does everyone think?
I advised my clients to stay away.
I know how to rapid rescore and simulate crdit repair through my firm, but I never have heard of this method nor the legalities of this.
simulate credit repair and rapid rescore. I have heard of rapid rescore but how do you do both of these items.
Why pay someone to do that when you can do it yourself? Go to www.creditboards.com and look for the business credit forums. They have extensive info on how to get credit tradelines fast.
smacks of credit fraud to me.[ Edited by cjmazur on Date 06/08/2007 ]
Ask one of the underwriters you work with how the lender would view it. I can guess what their answer would be.
: )
Guys,
FWIW.... we had one client do this. The guy was a referral to her mortgage lender from one of his cronies. He took her money and never did anything for her. He did this apparently to a lot of people. The Feds shut him down. The loan officer did get her money back somehow, but her credit actually got worse - if that was possible. It was awful. We finally did get a loan for her through another mortgage company after a few months. I would so not recommend it. The Feds at the time said it was not illegal YET. They were working on it. This was Oct. 07.
[addsig]
The credit scoring model has been revised to ignore those "authorized user" tradelines when computing the FICO score.
It is still not illegal to be an authorized user, there is no benefit to be gained by doing so and a waste of money for anyone who subscribes to a service that claims it can still be done.
Those last two posts smell like SPAM. They did change credit scoring models to exclude these items, among other revisions.
Those last two posts smell like SPAM. They did change credit scoring models to exclude these items, among other revisions.
Those last two posts smell like SPAM. They did change credit scoring models to exclude these items, among other revisions.