Want to buy a trade line? Here's what you need to know first...

It’s important to understand the process of purchasing trade lines, and how it can impact you as a consumer and as a real estate professional. At Premier Credit, we advise against the use of purchased trade lines, and here is why.

How it works…

  • Businesses sell access as an Authorized User to other people’s credit card accounts, known as trade lines.

Here are the potential consequences…

  • As a consumer, this could cost thousand’s of dollars up front for this access, which is a violation of the Credit Repair Organization Act.

  • Credit card companies view this process as a violation of their loan agreement, potentially costing you a lot more than the price you paid for that trade line.

  • Because you have no real access to the credit line, your credit profile is vulnerable to derogatory changes made by the owner of the account.

There are still a lot of credit repair companies or CSO’s that participate in this process, putting both the consumer and their referral partner at risk. Often times, a consumer can spend less to establish secured lines of credit and get the same benefit, with full control of the future of that account.

If you’re being solicited to use EIN (Employee Identification Number) schemes, or even worse, CPN (Credit Protection Number) schemes, be aware that these fraudulent programs have serious consequences for children and the elderly who may be unaware of fraudulent activity on their credit report.

Do you have other questions about credit repair? We’d love to answer them for you. Contact us here.

Alex Grimnes