topic Re: Buying tradelines in Rebuilding Your Credit

Buying tradelines

Anonymous — Mon, 15 Feb 2010 05:42:42 GMT

Does anyone know anything about this? Is is legit and does it work to boost your score?

Re: Buying tradelines

Anonymous — Mon, 15 Feb 2010 06:19:15 GMT

I have heard about it. I don't know if it is legal or not. What they do is pay someone else to put you as an AU on their account.

Re: Buying tradelines

RobertEG — Mon, 15 Feb 2010 07:22:24 GMT

You are apparently talking about being added as an AU on the account of a stranger.

My understanding is that AU status is now only recognized if associated with an account of an immediate family member.

Re: Buying tradelines

marty56 — Mon, 15 Feb 2010 13:41:06 GMT

I'll sell my BofA TL to anyone here. Heck I'll give it away

Re: Buying tradelines

Anonymous — Mon, 15 Feb 2010 15:25:05 GMT

No, it is not legit. It is fraud and technically a felony. Anyone who knowingly deceives a lender, or causes a lender to be deceived in order to obtain loans and credit, is committing fraud in the inducement. Both the person who "buys" the TL and the person selling are guilty in the eyes of the law.

It is one thing to put a family member on an account, who actually has access and use of an account, which is "legit." It is quite another to put a stranger on it for fee, knowing that they do so in order to trick FICO and lenders. In fact, it is legally questionable to put a family member on accounts that they don't actually have access or use of...meaning they are not, in fact, "authorized USERS."

A legitimate authorized user is somebody who knows the primary cardholder, and has some actual authorized use of the account, who has some agreement and responsibility to the primary cardholder (though not to the card issuer), and whose addition to the account is not solely for TL insertion on credit.

I am not passing any judgment, I am merely providing information related to how the law looks at "representations" related to obtaining or assisting in the acquisition of credit.

IMO IME

Re: Buying tradelines

marty56 — Mon, 15 Feb 2010 15:50:48 GMT

@Anonymous wrote:
A legitimate authorized user is somebody who knows the primary cardholder, and has some actual authorized use of the account, who has some agreement and responsibility to the primary cardholder (though not to the card issuer), and whose addition to the account is not solely for TL insertion on credit.

All could be resolved with making the AU a friend with benefits before the AU request is submitted. Now that's motivation to get to an 800 FICO score.

Re: Buying tradelines

laz98 — Tue, 16 Feb 2010 03:57:01 GMT

sure, it'll boost your score, if the accounts are really positive.......but it's super illegal. not worth it.

Re: Buying tradelines

RobertEG — Tue, 16 Feb 2010 08:14:03 GMT

It is a common, and preferable, practice, when authorizing an AU addition to an account, to grant them ZERO ability to charge on the account.

Just dont grant them a CC under the account, and they cant use it.

Personally, I feel that the whole concept of ever letting anyone piggy-back on the credit of another is abhorrent to the whole FICO concept of judging each individual on their own credit history, and I would banish it yesterday. Spouses' credit reports and scoring are even maintained totally separate.

FICO tried to abolish AUS in credit scroing, for the many valid reasons set forth above. Many outcries were heard. So they backed off, and limited it to the safer concept of "helping family members," and arrived at what I understand the current policy to be. You cant designate a stranger as an AU, but immediate family members are still scored.

But FICO does not determine grant of AU status.

If one applies for AU status, that is a busness decision to be made by the creditor. If both the intended AU and the account holder are truthful with the credtor, and the credttor decides to grant the AU status, that is at the discretion of the creditor. I see no feloneous intent to deceive anyone.

It is NOT illegal at all. It is common business practice exercised tens of thousands of time a day..

Message Edited by RobertEG on 02-16-2010 12:14 AM

Re: Buying tradelines

Anonymous — Tue, 16 Feb 2010 12:05:54 GMT

@Anonymous wrote:
No, it is not legit. It is fraud and technically a felony. Anyone who knowingly deceives a lender, or causes a lender to be deceived in order to obtain loans and credit, is committing fraud in the inducement. Both the person who "buys" the TL and the person selling are guilty in the eyes of the law.

It is one thing to put a family member on an account, who actually has access and use of an account, which is "legit." It is quite another to put a stranger on it for fee, knowing that they do so in order to trick FICO and lenders. In fact, it is legally questionable to put a family member on accounts that they don't actually have access or use of...meaning they are not, in fact, "authorized USERS."

A legitimate authorized user is somebody who knows the primary cardholder, and has some actual authorized use of the account, who has some agreement and responsibility to the primary cardholder (though not to the card issuer), and whose addition to the account is not solely for TL insertion on credit.

I am not passing any judgment, I am merely providing information related to how the law looks at "representations" related to obtaining or assisting in the acquisition of credit.

IMO IME

While it may be many things, it is not at all fraud, much less a crime.

Re: Buying tradelines

RobertEG — Tue, 16 Feb 2010 15:29:31 GMT

Amen, O6! Well said.....

I do find it a bit uncomfortable in suppporting the AU pocess in any manner, because I think it is a sham, but I cannot support any allegation that it is a basis for any assumption of illegitmate action or criminal intent.

It is just a pimple on an evolving system.

Message Edited by RobertEG on 02-16-2010 07:29 AM

Re: Buying tradelines

Anonymous — Tue, 16 Feb 2010 16:00:25 GMT

@RobertEG wrote:
Amen, O6! Well said.....
I do find it a bit uncomfortable in suppporting the AU pocess in any manner, because I think it is a sham, but I cannot support any allegation that it is a basis for any assumption of illegitmate action or criminal intent.
It is just a pimple on an evolving system.

Message Edited by RobertEG on 02-16-2010 07:29 AM

I could almost -- almost -- see if it were a family member, but for the life of me I can't see why any creditor would lend any weight to an AU account.

Re: Buying tradelines

DI — Tue, 16 Feb 2010 16:08:10 GMT

Piggybacking is the legal method. But the other way isn't illegal. It's just deceptive. But one can argue piggybacking is deceptive too.