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Will Buying A Tradeline Help Us?

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I am looking to get a higher limit credit card, ultimately I want to be able to purchase a small property and get a rehab loan. My score was 720 in January and since opening 4 cards and a few late payments, my score is now 550 (the highest limit is 700, and I have $2420 in total CC balances). I have an eviction judgement, 800$ at a credit union loan in good standing. Would a 20k AU tradeline help?

 

 

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2 hours ago, 123890 said:

I am looking to get a higher limit credit card, ultimately I want to be able to purchase a small property and get a rehab loan. My score was 720 in January and since opening 4 cards and a few late payments, my score is now 550 (the highest limit is 700, and I have $2420 in total CC balances). I have an eviction judgement, 800$ at a credit union loan in good standing. Would a 20k AU tradeline help?

 

 

Nope. The recent lates are the killers and even if you had a stellar AU added it would provide almost zero improvement. Don't waste your money.  Purchased trade lines, aka piggybacking, is not the fix the purveyors represent it as. Secondly, mortgage underwriters can spot this a mile away. Not that it would matter. It wouldn't make an appreciable difference in your scores.

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6 hours ago, cashnocredit said:

Nope. The recent lates are the killers and even if you had a stellar AU added it would provide almost zero improvement. Don't waste your money.  Purchased trade lines, aka piggybacking, is not the fix the purveyors represent it as. Secondly, mortgage underwriters can spot this a mile away. Not that it would matter. It wouldn't make an appreciable difference in your scores.

Not for mortgage, mainly gotten for opening a new CC to fund the 2k to 3k we are short on for buying the house with cash.

Edited by 123890

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@123890  It sounds like you already purchased the fraudulent trade line. It is most likely not going to raise your scores much.

 

With recent lates on four new credit cards within the last six months and an eviction judgement, you are not going to get a new credit card, especially one that offers a $2-3k cash advance.

 

I would concentrate on cleaning up your credit reports. Your recent issues will keep you from getting an unsecured credit card on your own right now.

 

 

 

 

Edited by lgt525
reread the original post and corrected number of trade lines

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Why would anyone buy a trade line that may disappear in short order? Why couldn't you start your own LLC online for $100 and have the LLC lend you money or extend you credit and report it to the bureaus? If piggybacking is legal (not convinced it is), why wouldn't this?  Anyone know the process and fees required to be a furnisher of data to the CRAs? Serious question... not meant as a troll post or to suggest fraud.  I mean start something akin to a "mini" peer to peer lending group for friends and neighbors which are legitimate and report to the CRAs.

 

Edited: Some credit unions sort of do this. They issue installment loans that are 100% secured based on frozen account funds. If they can get away with obvious manipulation for a fee, why can't the average Joe?  

Edited by CreditCurious20

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1 hour ago, CreditCurious20 said:

Why would anyone buy a trade line that may disappear in short order? Why couldn't you start your own LLC online for $100 and "lend" yourself money or extend yourself credit and report it to the bureaus? If piggybacking is legal (not convinced it is), why wouldn't this?  Anyone know the process and fees required to be a furnisher of data to the CRAs? Serious question... not meant as a troll post.

A company that wishes to report loan activity to CRAs has to meet the CRA's data reporting requirements and generally has to be a business that makes actually makes loans to people. It's a fairly complex process. Starting your own LLC or even corporation is trivial in comparison.

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2 hours ago, 123890 said:

One more question, we purchased an amex tradeline that reports on the 9th. How long will it take to show up?  

Good question. There have been some reports that Amex has taken a bit of time to report new accounts. However, you might want to check your soft pulls. You can get them on your full credit reports and, through May of 2021, you can get them all for free every week at annualcreditreport.com. Amex typically soft pulls credit for additional cardmembers.

Edited by cashnocredit

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2 hours ago, 123890 said:

One more question, we purchased an amex tradeline that reports on the 9th. How long will it take to show up?  

So you chose the one creditor that doesn’t backdate AU accounts?

Congratulations on your now lower AAoA.

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8 hours ago, CreditCurious20 said:

Why would anyone buy a trade line that may disappear in short order? Why couldn't you start your own LLC online for $100 and have the LLC lend you money or extend you credit and report it to the bureaus? If piggybacking is legal (not convinced it is), why wouldn't this?  Anyone know the process and fees required to be a furnisher of data to the CRAs? Serious question... not meant as a troll post or to suggest fraud.  I mean start something akin to a "mini" peer to peer lending group for friends and neighbors which are legitimate and report to the CRAs.

 

Edited: Some credit unions sort of do this. They issue installment loans that are 100% secured based on frozen account funds. If they can get away with obvious manipulation for a fee, why can't the average Joe?  

The fees and compliance requirements plus those fees are rather exorbitant if you can even meet the minimum reporting requirements. Plus if you report tradelines you must maintain and staff a dispute resolution solution and pay those employees.  We sometimes  refer to that service as E-Oscar.

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MANY lenders have quit reporting AU accounts where the AU is not at the same address as the primary.  Further, if you bought a tradeline that WILL report, you probably subjected yourself to identity theft by coughing up PPI.  Oh, and NOW you ALSO get a new address on your report given the primary account holder not being at your address.  And guess what happens after they have your money and then they default...yeah, you didn't think about that element, did you?

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1 hour ago, centex said:

MANY lenders have quit reporting AU accounts where the AU is not at the same address as the primary.  Further, if you bought a tradeline that WILL report, you probably subjected yourself to identity theft by coughing up PPI.  Oh, and NOW you ALSO get a new address on your report given the primary account holder not being at your address.  And guess what happens after they have your money and then they default...yeah, you didn't think about that element, did you?

American Express does report AU accounts to people with different addresses by default. My Amex plat has an AU and when my AU was refiing her home it was a problem. Didn't affect here scores but at the time I had a high balance since I put large expenses on it. It increased her debt/income ratio too much. I had to call Amex and have her removed from reporting.

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17 hours ago, 123890 said:

Not for mortgage, mainly gotten for opening a new CC to fund the 2k to 3k we are short on for buying the house with cash.

This. This will most certainly end well. 

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Not only are most the the companies that rent tradelines scams, with recent negatives, your FICOs probably won't change much, if at all. You need to focus on removing the negative information and make sure you have 100% on time payments going forward. Setting up the minimum payment on auto pay is an insurance policy against future late payments.

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