What are AU tradeline and how does it works

What are AU tradeline and how does it works

AU Tradelines, or Authorized User Tradelines, allow someone to be added as an authorized user to another person’s credit card account. This can help boost the authorized user’s credit score by adding the positive history of the account to their credit report. It’s a common strategy for improving credit quickly, as the primary cardholder's account age, payment history, and credit utilization are reflected on the authorized user’s credit profile. However, the authorized user isn’t responsible for payments or account management. This approach is often used for credit repair or to build a credit history.

AU Tradelines (Authorized User Tradelines) are a strategy used to improve a person's credit score by adding them as an authorized user to an established credit card account. Here’s how the process works and why it can be effective.

What Are AU Tradelines?

An AU tradeline refers to the credit account of a primary cardholder, such as a credit card, where an additional individual is added as an authorized user. The authorized user benefits from the primary account's positive payment history, credit utilization, and account age, without being responsible for any payments or managing the account.

How Do AU Tradelines Work?

1. Adding an Authorized User: The primary cardholder contacts their credit card issuer and requests to add someone as an authorized user. The authorized user is given access to the account but has no obligation to make payments.

2. Credit Reporting: Once the authorized user is added, the credit card issuer reports the account activity to the credit bureaus. The authorized user’s credit report will now reflect the account’s history, including factors like payment history, balance, credit limit, and account age.

3. Impact on Credit Score: The credit history of the primary cardholder’s account is added to the authorized user’s credit report. This can result in a quick boost to the user’s credit score, especially if the primary account has a long history of on-time payments and low credit utilization.

Advantages of AU Tradelines

- Boost to Credit Score: AU tradelines can significantly raise a credit score by adding a strong credit history.

- No Responsibility for Payments: The authorized user gets the benefits of the account without having to make payments or manage the account.

Limitations

The success of this strategy depends on the quality of the primary account. If the primary cardholder misses payments or carries a high balance, it can negatively impact the authorized user’s credit score.

Overall, AU tradelines are a popular method for improving credit scores quickly, especially for those with little or no credit history.