For people with solid credit, selling tradelines can be hugely profitable.
When you think about making extra money, it usually involves sacrifices.Whether you give up your time or your belongings, a side hustle almost always needs you to compromise something valuable for a little extra money.
The best hustles, however, require minimal efforts from the hustler. If you can draw on the value that you have created from past hard work, you can even bring in passive income, without sacrificing too much actually.
This post will show you how make $1500/hr very easy & Fast Selling tradelines in 2020.
- What is Tradeline Selling?
- Is Selling Tradelines Legal
- How Much Can You Make Selling Tradelines?
- What are the Risks of Selling Tradelines?
- How Much Time Does Selling Tradelines Take?
- Does Selling Tradelines Affect Your Credit Score?
- Can You Earn Credit Card Rewards Selling Tradelines?
- When and How Do I Get Paid?
- Do You Have to Pay Taxes on Income from Selling Tradelines?
- How Can I Get Started Selling Tradelines?
- Is Selling Tradelines Really a $1,000 per Hour Side Gig?
- Getting Accounts Shut Down
- Data Breaches and Unauthorized Purchases
- Final Thoughts
What is Tradeline Selling?
Tradeline selling is the act of adding a stranger as an authorized user on a credit card, allowing them to increase their credit score by “piggybacking” off your credit.
This “credit piggybacking” is an increasingly popular way to profit from your unused credit. By allowing someone with little or no credit history to build credit as an authorized user on your credit card, you can make money while barely having to lift a finger.
All of a sudden, your new authorized user will now show thousands of extra dollars of “available credit” on their credit report. This can help them qualify for loans, rebuild credit scores, or get lower interest rates.
Is Selling Tradelines Legal
Selling tradelines is legal. Also an authorized user will not affect the credit partner’s credit and cannot spend any money on your account.
The credit card companies will only send the AU card to the primary account holder’s address and the AU does not receive any information about the credit partner or their account whatsoever.
Additionally, most banks offer extra security features such as account activity alerts, instant account freezes, and multi-factor authentication.
How Much Can You Make Selling Tradelines?
The amount you can earn per tradeline varies. Some experts say you can earn between $125 to $275 per tradeline.
Tradeline Supply Company, a reputable broker, says you can make between $50 to $350 for each authorized user.
That rate depends on the age of the card and the credit limit. The older the card, the more you can earn because older cards provide a bigger boost to a credit score.
A higher credit limit indicates to potential lenders that the authorized user access to a lot of money and can spend it responsibly.
It sounds too good to be true, but you can make real money selling tradelines. There are some risks involved, so make sure you understand the ins and outs before signing up.
What are the Risks of Selling Tradelines?
Although the authorized user never receives any information about the credit partner, you can always add additional security measures to your account for peace of mind. Photo by Blue Coat.
Yes, there are some risks to selling tradelines. The main risk is the possibility of getting your credit card shut down. We estimate a 1-5% chance of getting your card closed depending on the bank and the number of authorized user (AU) spots you sell during a given period of time.
The good news is that you have control over how many AU spots you sell. If you have been consistently selling your AU spots out every cycle, you can always choose to pause your account between sales and give your cards a rest.
The key here is to not be greedy by adding and removing too many AUs too quickly. You want your accounts to stay open so you can stay in this game for the long haul.
How Much Time Does Selling Tradelines Take?
Selling tradelines is a popular side hustle because it doesn’t take more than a couple of hours a month. It’s a much more efficient way to make money compared to driving for Lyft or delivering food for DoorDash.
Thompson’s tradeline broker notifies him when they have an applicant, and Thomson then contacts his credit card company to add them as an authorized user. He can usually do this online, but sometimes he has to call the credit card provider directly.
“The order itself literally takes five minutes,” he said.
Thompson said these companies prefer you respond to inquiries within a few hours, and because adding an authorized user takes so little time, it always makes sense to do it quickly.
When it’s time to remove the authorized user, Thomson usually has to call and remove them over the phone because only the primary cardholder can remove an authorized user.
(If your wife has an authorized user on her account, for instance, you can’t call the credit card provider yourself.)
Does Selling Tradelines Affect Your Credit Score?
When done right, selling tradelines should almost never impact your credit score. Because the tradeline recipient never actually gets access to your credit card, they can’t run up a balance without your knowledge.
Still, you should avoid selling tradelines if you’re about to apply for a mortgage or business loan. Banks may close a card with too many authorized users, and that can affect your score as your available credit will go down and naturally your utilization will go up. If a long-standing card is closed shortly before you apply, your credit score could take a small dip.
The likelihood of a card being closed is minimal, but it’s still best to wait until after you’ve secured the loan. The money you can earn from selling tradelines is nothing to sniff at, but it’s not enough to risk jeopardizing the eligibility of your loan application.
Can You Earn Credit Card Rewards Selling Tradelines?
Because the tradeline buyer doesn’t get access to your credit card, they can’t make purchases on it.
This means you won’t earn any extra rewards, points or miles by selling a tradeline. It also means you won’t have to worry about someone unexpectedly charging a major purchase to your card!
When and How Do I Get Paid?
Most tradeline companies will pay you when the deal is concluded, after which you can remove the authorized user from your credit card. This is usually two months after you add them.
Every broker has its own policy, but Tradeline Supply Company sends an email notifying that you’ve earned a commission and can remove the authorized user from your account.
They pay via check or direct deposit, depending on your preference, and payment is sent within three to four days.
Do You Have to Pay Taxes on Income from Selling Tradelines?
Making money by selling tradelines is a form of income, so the tradeline broker will send you a 1099 tax form. That’s the same form you’d get from renting out your house on Airbnb or driving for Uber.
You’ll have to report this form on your taxes. You may only get a 1099 if you’ve made more than $600 in a calendar year from one company.
The tax implications depend on the total earnings and your personal tax rate. A good rule of thumb is to save between 25-30% of all tradeline income for tax time. If you make $1,000 a month like Thompson, you should set aside between $250 and $300 a month.
Open a separate savings account and transfer the money there every month. If you have a regular 9-5 job, you can increase the withholding on your W4 to pay taxes directly to the government.
Because there are no major expenses associated with selling tradelines, there are no deductions you can take to decrease the taxable income.
One way to decrease your tax liability is to take your earnings and contribute to a traditional IRA, traditional 401(k) or Health Savings Account (HSA). You can deduct contributions to those three accounts on your taxes, which can offset any tradeline income.
Like any other income, when you file your taxes, you’re going to show the money you’ve made. That’s how you’ll report to the IRS.
For a more specific answer, contact an accountant to see how much you would need to contribute to minimize your tax balance.
How Can I Get Started Selling Tradelines?
Generally, the card should be open for at least 2 years for you to be able to apply for selling tradelines.
A broker like Tradeline Supply Company may reject your application if your credit card is too recent or the credit limit is too low.
If your credit history is too new to qualify, make a note in your calendar to apply again in six months.
Fortunately, tradelines still work in 2020, and will continue to be effective for years to come.
To commence selling tradelines, go to the Splendid Credit home page and press the Blue button to submit your cards or click here to do so. Don’t sweat giving out your card numbers, its not necessarily a prerequisite.
Before you sign up for your cards, you might want to call each of your CC companies to raise the limit on your cards that you have (higher limit = more charged for the trade line). This is an added information (just for you).
Again, you only add users when you are instructed to include the details for the AUs.
Again, we rieterate; you sign up the cards that you want to enroll (remember, you don’t give out numbers or anything, only whatever cards you have — the issuing company, cap, and how long it’s opened).
Here are the steps:
1. You get an email that needs to be connected to the customer.
2. You go to your CC company’s website and add the Approved User online (Time = 2–3 min)
3. Somewhere around the 20th of every month, we’ll give you what you’ve received and instruct you to delete your AUs from your cards. Then call your CC companies and ask them to remove the AU (Time=5–15 minutes, depending on how long you’re on hold). Total time = ~10–60 min. depending on how many cards you need to call in and delete AUs.
Is Selling Tradelines Really a $1,000 per Hour Side Gig?
Selling tradelines has been written about on several reputable websites referring to it as a “$1,000 per hour side gig” but is this true?
Technically, the answer is yes, but let us explain further.
First, commissions generally range from around $50 – $350 per AU spot sold. The older the credit card is and the higher the limit, the higher the commission.
The AU’s only stay on for two months, so there is relatively frequent turnover. On average, we usually allow our credit partners to sell two AU spots per credit card every two months.
The reason this works out to a four-digit hourly wage is really due to how little time it takes to work this gig.
Once you get familiar with adding and removing AU’s from your account, you might be able to add someone in one minute and remove someone in 30 seconds since that often only requires a click of a mouse. A couple of banks allow you to add an AU online and then require you to call them to get the AU removed.
This said, let’s just assume on average adding an AU takes two minutes and removing an AU takes two minutes. An average commission is around $150 per spot.
If you do the math, earning $150 in four minutes of work comes out to an hourly wage of approximately $2,250 per hour. Just for fun, a $350 commission works out to be approximately $5,250 per hour based on time worked. Watch your profits grow as you sell tradelines.
Summarily, here’s everything about selling tradelines:
Getting Accounts Shut Down
Credit card companies reserve the right to cancel a card if you add too many authorized users, and different card providers may have different policies regarding the practice.
“I have heard from friends who were also (selling tradelines), that Bank of America does not like this,” Thompson said. “And they have shut down their cards.”
If a long-standing credit card is cancelled, your credit score may take a dip because the average credit age would decrease. Thompson said this is one of the only ways that selling tradelines can negatively affect your credit score.
Data Breaches and Unauthorized Purchases
In a time when data breaches are common, selling tradelines may seem like an easy way to get hacked. Thompson said there is potential for the authorized user to request an actual physical card. If they get a physical card, they can make purchases you’ll be on the hook for paying.
He recommended calling each credit card provider you’re selling tradelines with and setting up two-factor authorization. This way you’ll be contacted personally if an authorized user tries to order a card for the account or access personal information.
When you add the authorized user, the credit card company will ask where to send the new card. Have it sent to your address and store it somewhere safe.
Do not just read through, selling tradelines could be your next gold pot. You should really consider this business idea.
While you’re at it, we wish you the very best in your efforts.