Credit reports often display the credit accounts you’ve opened and these accounts are generally referred to as tradelines. There are individual tradelines for every credit card and loan. These tradelines consist of several pieces of data about the account and the lender.
It is true that you can enhance your credit score by purchasing tradelines. However, some people consider this to be a deliberate act to deceive the lender or financial institution. Others categorize it as a fraud. This means many people genuinely want to know if it is illegal to buy tradelines.
In this post, we will look into answering this question; but first, let us start by understanding the functionality of buying tradelines.
UNDERSTANDING TRALINES PURCHASE OPERATIONS
Most credit loan experts always advise people who need to boost their credit score to ask someone close (preferably a member of their family) for help. This help usually involves them adding them as a user that is authorized on the account linked to their credit card. If the main cardholder has a habit of keeping a balance lower than the credit limit and has a positive history of payments on the account, they most likely would benefit from being linked to that account. In other words, such an account can help increase your credit score.
There are some similarities between purchasing tradelines and being registered as an authorized user. However, there are two major differences;
- You have no idea whose account you are being registered on as an authorized user if you’re purchasing a tradeline.
- You have to make payments to be registered as an authorized user when purchasing a tradeline.
You have to make payment on a third-party platform to purchase tradelines. The fact is that these rates may even cost up to thousands of dollars. However, the benefit is that any tradeline you purchase will reflect on your credit report for a short time. Once the stipulated time elapses, you will be removed from the account on which you were registered. Navigate here for a reputable third-party platform where you can purchase tradelines.
IS PURCHASING TRADELINE ILLEGAL?
It is understandable that financial institutions and lenders see tradeline purchases as a deceptive practice. In fact, you may even get into trouble for committing bank-related fraud.
The whole purpose for determining a credit score is for financial institutions and lenders to be sure that a borrower has the capacity and character to repay loans. This is why the majority of them will only approve your application for credit after they have checked your credit report and credit score. They also use this to determine the amount that you can repay. It is more like a virtual assurance for the lenders that can be sourced from a prediction of your spending and payment pattern.
This is also why lenders do not hesitate to charge anyone that tries to deceive them by using another person’s creditworthiness. They may charge you for misrepresenting your financial position and possibly bank fraud.
In a nutshell, it is true that there are tons of platforms out there that allow you to purchase a tradeline for a given time. However, it is important that you keep in mind that you stand the risk of being caught.