The practice of purchasing tradelines involves adding a borrower as an authorized user on an existing credit account. Though this tactic is currently legal, it raises significant ethical and practical concerns. Typically, consumers pay a third party to be added to an established credit account—not to use the account, but to benefit from its positive credit history. The primary goal? To artificially boost or establish a credit score.
This strategy is often used by individuals with limited or nonexistent credit histories, or those seeking to offset negative credit information by showing positive credit activity.
How the Process Works
Currently, several companies offer tradelines for sale. Consumers can browse available tradelines on their websites, filtering by account age, credit limit, and balance. The longer and more robust the account’s history, the higher the price—typically ranging from $100 to $1,500 per tradeline.
Once a consumer purchases a tradeline, they are added as an authorized user. While they do not gain access to the account itself, the tradeline appears on their credit report. This listing remains for an average of three months before it’s removed, resulting in a temporary enhancement of their credit profile.
Why This Practice is Controversial
Buying tradelines to artificially inflate a credit score can misrepresent a person’s true creditworthiness—essentially misleading lenders. Though not explicitly illegal, this practice flirts with the boundaries of bank fraud.
Credit bureaus have not removed authorized user accounts from their scoring models, but newer algorithms now place less emphasis on them. Lenders, too, are increasingly wary. A thin credit file that suddenly features multiple high-limit, long-standing accounts may prompt closer scrutiny. If lenders uncover that these accounts were purchased, they may deny the loan application—and, in extreme cases, the consumer could face legal consequences, including fraud charges.
A Smarter, Safer Alternative
For those with a limited credit history, the most effective and responsible route is to build credit organically. Opening a secured credit card is a great starting point. For consumers with no credit history at all, these cards can help generate scores within 6–8 months.
In the meantime, being added as an authorized user on a trusted family member’s or friend’s account is a legitimate option—provided it’s not done through a third party. This can help generate credit history more quickly, without the ethical and legal risks of purchased tradelines.
While purchasing tradelines remains legal for now and no current legislation bans the practice, it constitutes a fundamental misrepresentation of one’s credit history. As such, it carries real risks—including potential fraud accusations and damage to a consumer’s long-term financial health. When it comes to building credit, the most sustainable path is the honest one.