A new trend in boosting credit scores involves adding strangers as authorized users on credit cards. This practice allows individuals with poor credit histories to piggyback off the strong credit profiles of others, paying for the benefit of the card’s favorable characteristics to appear on their credit reports. While this may result in a temporary score increase, there are risks involved, including potential fraud and identity theft.
Tradeline selling has become a popular side hustle, particularly within the FIRE (financial independence, retire early) community. Social media influencers like Amber Smith have been participating in this practice, earning money by adding strangers as authorized users on their credit cards. While some view this as a legitimate way to help others improve their credit, others warn of the potential consequences, including the possibility of breaking credit card terms and conditions or aiding fraudsters.
Critics of tradeline selling highlight the risks involved for both buyers and sellers. Sellers risk having their cards canceled if the issuer discovers their involvement in tradeline selling. There is also concern that buyers could be at risk of identity theft if their personal information is misused. Additionally, fraudulent activities, such as using tradelines to engage in credit card fraud, have been reported in the past, highlighting the potential dangers of this practice.
Credit card companies, like Discover, American Express, Capital One, and Chase, have remained silent on the issue of tradeline selling. While credit bureau Experian and credit scoring leader FICO caution against buying tradelines as a quick fix for credit scores, some individuals still see value in this practice. However, experts warn that the impact of tradelines on credit scores may be limited, and the practice may not be a sustainable solution for individuals looking to improve their credit long-term.
Overall, the use of tradelines to boost credit scores remains a controversial topic. While some individuals see it as a viable option to improve their credit quickly, others caution against the potential risks and ethical concerns associated with this practice. As the debate continues, it is important for consumers to carefully consider the implications of buying tradelines and seek out more sustainable ways to improve their credit health in the long run.
