Are Tradelines Legal? How are tradelines legal?


Are tradelines legal? People often ask are tradelines legal and some make cases for and against the use of tradelines.  Yes tradelines are legal.

Of course, their main argument is that authorized users are manipulating the credit scoring system. The manipulation argument, assumes that our credit reporting system is not flawed, or even fair.

In fact, the credit scoring systems are made up by private corporations, some systems include more information that give a better picture of the credit worthiness of a potential client or customer.

More importantly, this imperfect system that scores authorized user tradelines in their scoring model and decides the rates, amounts of credit and is federal law which allows it.

  • “After consulting with the Federal Reserve Board and the Federal Trade Commission earlier this year, Fair Isaac has decided to include consideration of authorized user trade lines present on the credit report ”Thomas J. Quinn – Vice President of Scoring Solutions, Fair Isaac Corp.


  • FTC spokesman Frank Dorman said:  “What I’ve gathered from attorneys here is that it is legal, however, the agency is not saying that it is legal technically.”


  • This is possible because creditors generally have followed a practice of furnishing to credit bureaus information about all authorized users, whether or not the authorized  user is a spouse, without indicating which authorized users are spouses and which are not.  This practice does not violate Reg. B

– Robert B. Avery, Kenneth P. Brevoort,

Divisions of Research & Statistics and Monetary Affairs

Federal Reserve Board, Washington, D.C.


It is legal to be an authorized user to raise your credit scores and or to build credit fast.

Info on the legality and legal definition of authorized user –

Authorized User Law and Legal Definition. … A person doesn’t necessarily need to be named on a credit card contract to be an authorized user. When a person is an authorized user, he or she is authorized to use the card, but is not always responsible for paying. Nonetheless, FICO still scores authorized user accounts.

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Are Tradelines Legal