Working With a Tradeline Company
The legal issues lay with tradeline companies not doing adequate background checks. This is why it is important to vet any tradeline company before signing up with them. The issues come up when the tradeline company takes a shortcut and there is a liability risk to the tradeline company.
Tradelines can’t be sold to AU’s as credit repair and money can’t be collected up front from the client.
You want to be with a company who has a high sales volume and pays fair commissions, but also minimizes the risk of getting your cards shut down. Plus you want the Tradeline company to be running background checks on the people who are borrowing your credit.
This is a sample of what the Tradelines Company will send you when you sign-up:
“Thank you for submitting your credit partner verification information in order to receive a custom quote. We have reviewed your tradelines and the accounts listed below have been selected based on our current qualification criteria. We are currently only working with a very limited number of banks who have proven to be reliable for authorized user postings. If you are ready to move forward based on these commissions per authorized user, please respond back to this email and type back into the grid below two pieces of info:
- The number of authorized users you are requesting that we sell per card (We have offered a suggested number of AU’s to add, but you are welcome to modify that based on your own comfort level)
- The last 4 digits of your credit card number so we can reference the proper card in our communications with you. (This information will not be given out to anyone else)
We will send you the Credit Partner Agreement to sign via Docusign for your Capital One, the two Chase cards, and the Barclays. Below is the adjusted commission for your Chase cards based on your new credit limits. How many AU’s would you like to allow for the Barclays (6 max)? Once the Agreement is signed, we get your cards added to the inventory. While your cards are being added to the inventory, you will receive a Credit Partner introduction email. This intro email will explain how to log into your new Credit Partner Portal for the first time. It will also explain how to confirm your orders once a new order is received. Feel free to call us anytime with any questions. We look forward to working with you!”
“Once we receive your reply we will send you our credit partner agreement paperwork via Docusign for you to electronically sign. Our commissions do change regularly, so this commission quote will be honored if you sign up within next 14 days.”
Other Things to Note
- Be aware that some cards charge an annual fee per authorized user so please go through the card issuer’s website as if you were adding an authorized user to see if that fee applies to your particular accounts (a disclaimer will usually pop up notifying you of that)
- If your card does have a fee you could try to downgrade the card to one that does not have that fee!
- Don’t have multiple Tradeline Companies handle one car.
- Keep your personal and business cards that you are using for yourself, separate from the Tradeline Accounts.