Do tradelines comply with Terms of Service?

Updated on June 23, 2019 in Tradelines
4 on June 21, 2019

Is “selling tradelines” against credit cards TOS? It’s the term for adding authorized users for a fee so they can boost their credit, they never get access to your credit cards though, right?

 
  • Liked by
Reply
0 on June 23, 2019

Great question. I haven’t read all terms of service for all credit card issues, but I imagine most (if not all of them) do not prohibit the practice. If you’re concerned, send us a link of the terms and we’ll take a look with you. 

Whether the authorized user gets access is completely up to you (it’s your authorized user and it’s completely up to you how you handle the relationship with them).

  • Liked by
Reply
Cancel
0 on June 23, 2019

Out of curiosity, I looked up capital one. 

Here’s their terms of use relative to authorized users:

As you can see, there’s no prohibition listed.

  • Liked by
Reply
Cancel
0 on June 23, 2019

I went ahead and read through Bank of America’s terms of use relative to authorized users as well. They also do not have a section prohibition authorized users for profit. 

  • Liked by
Reply
Cancel
0 on June 23, 2019

I found some terms that could be problematic: 

Chase’s terms provide:

“3 Adding An Authorized User: All correspondence, including credit cards, statements, and notifications will be sent to the name and address on file for the primary cardmember. The primary cardmember is responsible for repaying all balances on this account. Authorized users will have the same account number and charging privileges as the primary cardmember but will not be financially responsible. Chase provides account information to the credit reporting agencies for all account users. This information could impact an authorized user’s credit score. When you tell us to add a user to your account, you’re confirming that you have a relationship with the person or people whose name(s), address(es), and date(s) of birth you’ve told us, that all their information is correct, and that you have their consent to add them. If Chase determines you’ve given us fraudulent name, address, or date of birth information, or did not have such consent, Chase can close this account.”

So, first of all, whether a third party selling tradelines have a “relationship” is questionable. They certainly have a “contractual” relationship, right? Does chase mean “personal” relationship? If so, it’s a little bit less clear. Ultimately, it’s up to them whether you’re violating that provision. The consequence, they’d shut down your card.

The second portion is much more clear; fraud. I think this is implying the CPNs craziness. Meaning, if you’re adding someone with a fake social security number or other false information, they clearly (i.e., unambiguously) state that this is a violation of their terms and they will certainly shut down your account. 

  • Liked by
Reply
Cancel