What Are Tradelines and Why They Matter for Credit History

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Boiko Kateryna Олександрівна

Consultant

USA / Delaware

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Publication date: 25.07.2025

1. Introduction: What Are Tradelines and Why They Matter for Credit History

In the United States, credit history is critically important for accessing financial products such as mortgages, auto loans, or credit cards. One of the key elements of this history is tradelines — records of open credit accounts. They contain details about each loan: account type, opening date, limits, balances, payment status, and more.

Among all types of tradelines, special attention is given to those where you are listed as an authorized user. Being added to someone else’s account can be an effective way to improve your credit score.

2. Who Is an Authorized User

An authorized user is a person whom the credit card holder (the primary account owner) adds to their account. The authorized user receives a card linked to the main account but bears no legal responsibility for repaying the debt. 

The primary goal is to allow another person to benefit from the account holder’s credit history.

This practice is most commonly used within families: parents add their children to help them build a positive credit history. However, it is also widely used in financial planning and even in the credit repair industry.

3. How the Authorized User System Works

The process of adding an authorized user is quite simple. The credit card owner contacts the issuer and requests to add a new user. Most major U.S. banks (such as American Express, Chase, Capital One, etc.) allow adding multiple users either for free or for a small fee.

• The authorized user receives a new card with their name but does not have full access to manage the account;
• Account behavior — on-time payments, low credit utilization — is reported to credit bureaus for all users;
• This data affects credit scores with Experian, Equifax, and TransUnion.

4. The Impact of Tradelines on Credit Score

Being added to a positive tradeline can significantly improve your credit score, especially if:

1. The card has been open for a long time (the longer, the better);
2. The balance is kept low relative to the credit limit (under 30%);
3. There are no late payments on the account.

These factors improve the length of credit history, credit utilization ratio, and payment history. The effect can be especially noticeable for those with little to no credit history or a low score.

5. Legality and Risks of Using Authorized Tradelines

The process of adding authorized users is entirely legal. However, in the U.S., there is an ongoing debate around the commercial use of this strategy. Some companies specialize in selling temporary access to other people’s well-established credit cards.

• It is not prohibited by law, but regulators warn about potential fraud;
• Lenders may disregard such tradelines when evaluating credit applications;
• In cases of misuse, sanctions may be imposed or the tradeline may be removed from the credit report.

6. Commercial Use: Buying Access to Other People's Tradelines

Some individuals or companies offer paid services to add clients to credit cards with a positive history. Prices can range from $100 to $1,000 or more, depending on the account's age, credit limit, and payment history.

These arrangements are known as “ piggybacking credit ” and are often used to temporarily boost credit scores before applying for a mortgage or auto loan. However, caution is advised:

1. Not all providers are legal or ethical;
2. Such tradelines may be excluded from your credit report;
3. You have very limited control over the external account you’re added to.

7. How to Choose a Reliable Authorized Tradeline Provider

If you decide to use commercial access to tradelines, pay attention to the following criteria:

• The company has positive reviews and a proven track record;
• A formal contract with detailed terms is provided;
• Clear explanation of how the service works and how long it lasts;
• Availability of guarantees (e.g., refund in case of failure);
• Use of legitimate accounts with real financial institutions.

8. Tips for Safe Use of Tradelines

1. Always verify the source and legality of the provider;
2. Share the minimum amount of personal information;
3. Don’t rely solely on tradelines to build credit — open your own accounts;
4. Regularly monitor your credit report using services like Credit Karma or AnnualCreditReport;
5. Consult with attorneys or financial advisors if you have doubts.

9. Frequently Asked Questions (FAQ)