Is Wholesale Tradeline A Good Business?
Our society is becoming highly dependent on the credit score a person has. In comparison to earlier times when credit was important for getting a loan or getting a credit card, more and more businesses are offering good deals and extended services if you have a good credit score. As a business owner or as an individual, you would never want to have a bad credit score.
But how can you build your credit back up? Well, the answer lies in buying tradelines, and with such a huge demand for good credit, selling tradelines wholesale is an excellent business. So, whether you’re an aspiring entrepreneur looking for a good business opportunity or an established business owner looking to explore new ways of making money, selling tradelines can be a great business.
Let’s look at what wholesale tradelines is to get a general idea of why it is so profitable.
What are tradelines and wholesale tradelines?
A tradeline is a record of all activities related to a person’s account. Whenever a borrower is approved for credit, a tradeline is established on the borrowers account by the credit reporting agency.
In short, a tradeline is a record-keeping mechanism that keeps the information on the creditor, the lender, and the type of credit given. This information is used to calculate your credit score; therefore, tradelines with positive information can help boost your credit score.
Wholesale tradeline is selling tradelines with positive information on a large scale, mostly to retailers and brokers. These brokers further sell these tradelines to end consumers who want to increase their credit score.
How much money can you make by selling tradelines?
Selling tradelines can be a very good business, but there are a few pre-requisites that you have to complete.
- In order to start your wholesale tradeline business, you have to make sure that your own credit history is good so that people can trust you.
- The second step is finding an authorized tradeline company that gives you access to tradelines that you can sell to your clients.
- Lastly, you will need to add the client to your credit card, and you’re good to go.
After you have completed these necessary steps, you are ready to earn. You can sell 2-5 tradelines every month. This is a commission-based business, so as a broker, you would have to bring in as many clients as you can, and you will make a percentage of that amount. For example, if a client pays you $400 for your tradeline and the company gives you a commission of 40%, you make $160. If you sell 5 tradelines, you will make $800 a month.
What are the risks involved?
Each business comes with its share of risks and rewards, and selling tradelines is no different. The first question most people ask surrounds the legality of selling tradelines. While they are legal, it is against the terms of service of most credit card companies, so it is still a grey area.
However, in selling tradelines, the risk with the highest probability is your card getting shut down. To make sure that you are not a victim of this, you can verify the identities of your clients and do a background check, as well as enrolling credit cards that are not important to you.