These are great questions!
So, when hiring a company any tradeline provided is managed. Meaning the utilization is kept down and the payments are ALWAYS on time (when working with a good company). When a line is provided by a friend or family member you have no contractual standards that the account (seasoned tradeline) must be held to. Meaning, they (the friend or family member) could miss a payment, and/or the utilization on the account could increase to a point that the account is no longer effective at enhancing your credit reports.
Basically what you’re paying for is security. When working with a good tradeline company you are eliminating the risk that the seasoned authorized user tradeline you are piggybacking onto would not provide benefit to your reports. This is accomplished by the company holding the cardholder to appropriate contractual standards to ensure that and seasoned tradeline being added to a credit report would provide benefit, and not detriment. Concurrently you (as a client of a tradeline company) have a contractual agreement (with said company) that you will be listed as an authorized user onto a seasoned tradeline that will only provide benefit, not detriment. The short answer to all of this is that you are paying for security. If you are considering piggybacking on a seasoned tradeline from a friend or family member here is the question you should be asking: Are you absolutely certain that they account will be managed appropriately?
At the end of the day piggybacking on an authorized user tradeline is piggybacking on an authorized user tradeline. Meaning if you are hiring a company for a tradeline, or going to a friend or family member to be listed as an authorized user, the action is the same. Adding positive information will provide benefits, adding negative information will provide detriment. If you getting your tradelines from a friend/family member, or from a company the question you should be asking is this: Will the tradeline I’m being added to provide benefit to my credit reports, or detriment?
If you’re considering utilizing seasoned authorized user tradelines to enhance your credit scores you should have a conversation with an expert. If you want to have an honest conversation with a tradeline expert let me know.
When you are ready to realize your credit potential reach out to me!