What Is a Seasoned Trade Line?

A seasoned trade line is a type of credit account that has been used by an individual for a long period of time. This account has remained in good standing throughout the entire term. With seasoned trade lines, a practice called piggybacking is often used in order to improve the credit of other individuals. Here are a few things to consider about seasoned trade lines and piggybacking.

Piggybacking

When an individual has a credit account in good standing, they could choose to allow another individual to utilize this account in order to improve their own credit. With this type of arrangement, an individual with bad credit pays the person or business with good credit a specific amount of money. In return for this fee, the account holder allows the person with bad credit to be added to their account as an authorized user. By doing this for a certain amount of time, the individual with bad credit will see their credit scores increase. 

Services

In order to facilitate this type of transaction, there are several piggybacking services that are available in the market. These individuals set up businesses in order to find clients to match up with this type of transaction. They will collect a fee from the individuals who have bad credit and match them up with someone that has a seasoned trade line and good credit. The company will collect a fee that could be as high as $3,000 for this service. They will keep a certain percentage of the fee and will give the rest to the individual with the trade line. 

Risks

If you are an individual with a seasoned trade line and you are thinking about engaging in this practice, there are some risks that you should be aware of. One of the biggest risks associated with this procedure is that the individual on the account could rack up charges on it without making any payments. With most of the piggybacking services out there, they claim to avoid giving any pertinent information to the person that is being added to the account. They do not give them the account number or any specific information about you. However, in some cases, resourceful individuals have still found a way to charge items to the account. In this case, you could find yourself with a big credit card bill that you did not create. At that point, you will be forced to pay the bill or watch your credit suffer.

Benefits

Even though this process can be risky, it does have some benefits for both parties involved. If you are the one with a seasoned trade line, you can make some nice extra cash for doing nothing. You only have to allow someone access to your account. If you are the individual trying to get put on an account, you can basically take a shortcut to improving your credit. As long as you have the money for the fee, you should see your credit scores start to increase quickly.


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