In the past three years, my financial landscape has been significantly reshaped by an unexpected (ad)venture: selling tradelines. This journey wasn’t just a sideline hustle; it became a pivotal part of my financial strategy, offering insights into credit markets, personal finance, and the dynamics of credit score improvement. In this post, I’ll share my firsthand experience, the lessons learned, and the strategies that worked (and didn’t) in the world of tradelines. Whether you’re considering selling tradelines yourself or simply curious about this niche financial practice, join me as I unpack the layers of this journey.
The Basics of Tradelines: A Brief Overview
Before diving into my personal experience, let’s clarify what selling tradelines entails. Essentially, a tradeline is a credit account recorded on your credit report. By “selling” a tradeline, you’re adding someone as an authorized user on your credit card account, thereby allowing them to benefit from your credit history. This practice is often sought after by individuals looking to improve their credit scores quickly.
Year One: The Initial Dive
Stepping Into the Unknown
My journey began when I ran into a thread in the Mr Money Mustache forum. It took me several hours theoughout three days to go through a few years of posts. I was immediately hooked by the potential financial benefits and the opportunity to assist others in building better credit histories (I remember to this day the many times that I Googled things like “monetize good credit” with no success…). After some research on the brokers recommended in the forum, I decided to take the plunge, and started selling one of my cards through Boost Credit 101.
The Learning Curve
The first year was all about understanding the “industry” and establishing myself as a reliable tradeline seller. Navigating customer expectations and building trust were paramount, laying the foundation for a successful venture. Basically there are two tasks: keep the card in good standing (pay on time and use it monthly while keeping a low utilization) and be quick to respond to sales (add the authorized user as fast as possible, as most buyers buy right before the credit card statement closes, so there is usually a 24/48 hours window to act).
When I learned about tradelines I had been churning credit cards for a while but I always closed them once I had received the short term bonus and benefits. What a mistake! So I only had three cards when I started and only two were accepted by at least one of the brokers. So after listing my card, and seeing this thing really works, I started opening credit cards to “season” them (waiting for them to be two years old which is the minimum age most brokers accept).
Then I wan into a blog post by the Wealthy Accountant. This gave me a new perspective, some new advice and an intro to the second broker I used: the Tradeline Supply Company. This is pretty much the leader and bigger seller of all.
The eBay experience
One thing that really bothered me about the tradelines business is that most brokers keep about 70 to 75% of what the buyer pays. That, and the fact that most brokers didn’t want to take the cards I had just opened lead me to sell on eBay. Tradelines are listed in the Personal Development/Personal Finances section. I made quite a bit of money (see the summary table at the end) until my account was suddenly banned for selling (fortunately I can still buy on my 20+ years old account with 262 positive reviews…)
Apparently tradelines are sold on eBay but it is actually not allowed so I got my account noticed either because I had too much revenue (when they banned me I had $1,500 tied up there. I had to wait 60 days to get my money finally released) or because a competitor seller flagged me to get rid of me.
Year Two: Wait and see
After I got banned on eBay I got a card closed. This was a Bank of America card that is known te be very risky. Took my chances with it and it worked for a while. Since it had a $40,000 limit I was able to get a good return that made it all worth it. The bank also closed a business card that I had opened to get a welcome bonus. I have been a Bank of America customer for 25 years and still am with checking and savings accounts…
These two setbacks made me slow down a bit so I took it easy for a while.
Almost forgot! I was able to sell a couple extra tradelines to my eBay buyers after I got kicked out, so I brought them here to my blog where I had to setup Woocommerce and sell here. Unfortunately I have been unable to bring any new buyers ever since so now I am playing the “SEO keyword lottery” to see if Google gives me a break. And I keep selling with the brokers.
Year Three: Lessons Learned
The third year brought its share of challenges, including navigating fluctuating demand (I mean slow demand). I added cards from a second card owner to reach as of know 11 cards from two owners. I had to stop opening cards because the hard inquiries on my credit report got out of hand (around 10) and it is only now getting back to safer levels (around 5).
Perhaps the most crucial lesson learned was the importance of patience and strategic planning. Selling tradelines isn’t a get-rich-quick scheme but a legitimate financial strategy that requires diligence, discipline, and a long-term perspective.
I also expanded to two new brokers: Improve My Credit Fitness and Coast Tradelines, each of them because they worked with a card that I had and no one else seemed to want to broker.
Conclusion: It’s totally worth it!
Reflecting on the past three years, my journey selling tradelines has been both rewarding and enlightening. Not only has it bolstered my financial understanding, but it has also provided me with a wealth of knowledge about credit systems and personal finance management. For those considering this path, my advice is to approach it with caution, do your research, and always prioritize ethical practices.
As I look to the future, I’m excited to apply the lessons learned to continue growing my tradeline business. The journey has been filled with ups and downs, but the knowledge gained and the financial rewards have made it all worthwhile. For anyone embarking on a similar venture, remember: success in selling tradelines comes from understanding the market, being patient, and maintaining a strong ethical foundation.
Selling tradelines has been a part of my financial strategy over these last three years. It’s not just about the additional income; it’s about understanding a niche market and leveraging financial know-how for mutual benefit. My journey is a testament to the fact that with the right approach and ethical considerations, selling tradelines can indeed be a viable and rewarding financial activity.
Data Summary
Tradelines sold: 59
Cards used: 11 (two individual owners)
Cards closed by the issuer: 1 (this was the BoA which is considered a risky card)
Non posts: 1 (this was a Discover for which I made a purchase on the wrong Discover card)
Below is a summary of sales grouped by tax year and Broker. After eBay banned me I took some time off while my young cards matured.
Below is a summary by card and broker. This shows the potential of selling on eBay where one can cut off the middle man. Comparing the other brokers would not be fair because I sell with them very different cards.
The Cards Used
Finally, below is a summary of what cards are accepted by what brokers. And colored in green the cards that I list with each broker.
This data is expanded and kept up to date in the page linked in the section below
Resources for Sellers
Please refer to my Tradeline Information for Sellers page. Some links on the section below for buyers can also help sellers.
Resources for buyers
The following is a list of resources to start learning about tradelines. We have a list of tradelines for sale, and a tradelines FAQ. Also various posts about tradelines, and a chart of tradeline prices from competitor sites. Finally, a contact form to ask further questions.
Please feel welcome to ask any questions below.
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