Credit Report Seasoned Trade Line

A credit report seasoned trade line is a method of allowing strangers with bad credit to become authorized users on a credit card account of someone with good credit for a fee. This is also known as piggybacking and can be very helpful to people who have bad credit and fear they will never be able to have good credit. Of course, there is some controversy to the credit report seasoned trade line business.

The benefit to the person with bad credit will have an account with excellent credit history listed on their credit report which will raise their credit score. The cost of a credit report seasoned trade line will run anywhere from $500 to $2,000 depending on the credit history of the new account. The person with the good credit receives from $100 to $150 for this with the rest of the money going to the middle man that set up the seasoned trade line in the first place.

Of course, there is a risk for the person with good credit. The person with bad credit may charge the credit card account and then not pay it back thus causing damage to the good credit person. The brokers who provide the service claim that they never provide the entire account number to the recipient, however they may find it out anyway because the entire number may appear on some credit reports.

A logical question that comes about when exploring a credit report seasoned trade line is whether or not it is legal. The FTC says that what they have been advised about from their lawyers is that it appears to be technically legal. The agency, however, is not saying that it is legal. The credit report seasoned trade line practice could be fraudulent if, as required by the contract, a borrower does not disclose pertinent facts relating to that person’s ability to pay back a loan.

Fair Isaac Company who is the inventor of the FICO score which is your credit rating says they will no longer take into account authorized users when determining a credit score. That means that a credit report seasoned trade line practice may become obsolete.

This is a double edged sword since it will stop the practice of seasoned trade lines appearing on credit report; however it will negatively affect students who use their parent’s cards and spouses with little credit history of their own. A seasoned trade line can help a person with bad credit show good credit on their credit report, but it may not be legal and we think it won’t even be available in the future anyway.

As of this writing, Seasoned Trade Lines are no longer in practice.

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Is it possible for people with bad credit to get loans in their name?  You’d think not, wouldn’t you?  After all, people with bad credit have a history of not paying off previous loans which makes them bad credit risks; – right?  They’ve gotten into trouble with credit before and there’s no place out there that will loan them money with a bad credit history – right?  Well, that’s kinda right.

It is possible for people with bad credit to get a loan!  They might not be able to always get it on their own, but there are options available to those with bad credit.  The terms may not be attractive, and it certainly might not be easy, but it is possible.

The first and and probably most viable option for people with bad credit to obtain a loan is to find a co-signer for the loan.  The co-signer must be a person with a clean credit history.  Basically, when a co-signer secures a loan, you both appear on the loan as responsible parties.  The co-signer is essentially telling the lending company that they will make sure you make your payments and if you don’t, they will.

Having a co-signer on a loan is tricky business, however.  Usually a co-signer is a parent, loved one, or close friend.  If anything goes wrong, the relationship between the two of you could go horribly sour, so if you are asking someone to co-sign on a loan with you, you should either be sure you can make your payments or risk damaging the relationship you have with them.

People with bad credit might also be able to secure a loan in their name from a lending company, but they are most likely going to have to pay a higher interest rate than those who have good credit.  For example, a car loan for a person with good credit can be obtained with a loan that has a financing rate as low as 0 percent in some cases.  A person with bad credit might pay up to 12 percent or more for the same loan.  As you can imagine, that means higher payments on the loan for the person with bad credit.

A secured loan is another option for people with bad credit.  Essentially, a secured loan uses the property you are borrowing for as collateral against the loan.  If you don’t make the payments, the property is repossessed.  Secured loans for people with bad credit are generally given for a vehicle which means that non-payment means the car goes bye-bye.

The good news is that if people with bad credit are able to secure a loan, they can rebuild their credit with timely payments and non-default.  That puts them on the road toward financial stability and a favorable credit report.

Loans With Bad Credit

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