Is Selling Tradelines Legal in the U.S.? What Cardholders Should Know
Renting the authorized user (AU) slot on your personal credit card is one of the easiest ways to earn extra income in a tight economy. Understandably, one of the first things cardholders want to know about the process is, “Is it legal?” It’s a smart question to ask. Financial transactions in the U.S. are heavily regulated, and no one wants to enable fraud, intentionally or otherwise.
The good news is, selling AU tradelines is permitted under U.S. law. However, its legality depends heavily on its intent and how it’s accomplished. This guide covers the definitions, risks, and best practices around selling AU tradelines so you can approach the process with confidence.
What is a tradeline?
A tradeline is any credit account that appears on a credit report. It can be a mortgage, an auto loan, a credit card, or any other account that requires the account holder to make regular payments on an owed balance.1
An AU tradeline, specifically, refers to a credit card account to which a person has been added as an authorized user. This often happens in families, where a parent designates an adult child as an authorized credit card user to help them build credit. Most credit cards offer at least one authorized user slot; some allow multiple authorized users.
The AU Benefit
When an authorized user is added to a credit account, the account’s age, credit limit, utilization, and payment history appear on the user’s credit report. Some lenders look favorably on these tradelines, as they demonstrate a level of trust in the user’s creditworthiness. If the account is well maintained—with a low utilization and great payment history—the benefit is magnified. It’s almost like getting an established, responsible acquaintance to co-sign on an important loan, minus all the legal and financial obligations.
Consumers quickly realized they could rent these AU slots to others who needed help building credit but didn’t have a close friend or family member with an established account. These consumers found protection under the Equal Credit Opportunity Act of 1974, which sought to eradicate racial and gender-based discrimination in lending. The act permitted U.S. cardholders to add to their accounts any authorized user(s) of their choice.2
Another Layer of Protection
In traditional circumstances—like when a parent adds a child to their credit account—the authorized user is granted access to the account holder’s line of credit. They can make purchases with the credit card, view account information, and report potential fraud. The AU is typically not responsible for making payments on the balance but can do so depending on the AU rights outlined in the cardholder agreement. Making these payments contributes to both the cardholder’s and the authorized user’s positive credit history.
Obviously, giving perfect strangers this kind of access to personal financial information is unwise. So tradeline brokers entered the picture to facilitate sales of AU slots while protecting cardholder information. Through a broker, tradeline buyers receive the credit boost of being added as an AU, while cardholders can rest assured that their card’s “user” won’t be racking up new charges on the account. After a period of three months, the AU is dropped from the account, and the cardholder can rent the slot to someone new.
The Lender’s Perception
Because the U.S. lacks laws expressly allowing or disallowing tradeline sales, regulatory decisions often fall to the credit lenders—and how they handle AU tradelines can vary widely. Some see AU designations as having only a small impact on a person’s overall creditworthiness and let them sail through the credit evaluation process. Other lenders consider them deceptive and exclude them from credit evaluations and reporting.3 They may also set strict rules in their cardholder agreements about who can be added as an AU. While these rules may seem unfair, their purpose is to protect lenders and their customers—including you—from financial abuse and fraud.
Cardholders wishing to sell AU tradelines should carefully review their cardholder agreement to ensure the process doesn’t violate any terms set by their lender. Violating these terms can result in account suspensions or closures, loss of reward points, loss of fraud protection, higher lending rates, heavy fines, reduction in credit score, ongoing credit monitoring, and even legal action.4
What is Piggybacking?
Becoming an authorized user on another person’s credit account is sometimes called credit piggybacking. It’s a term that describes the benefit authorized users receive from an account holder’s positive credit history. Piggybacking falls into two categories: traditional and for-profit. Traditional piggybacking is when a cardholder adds a family member or close associate to their credit account, which is a widely practiced and encouraged method for building good credit habits. For-profit piggybacking refers to buying AU tradelines, which is a limited, short-term credit repair strategy.5
The Risk of Selling Tradelines
Nearly all credit lenders discourage for-profit piggybacking, largely due to the risk of identity theft. Poorly run tradeline programs require sellers to hand over sensitive personal and financial information that could expose their accounts, such as card numbers and PINs. Scammers will often disguise themselves as tradeline brokers in order to steal this sensitive information. Lenders who conclude that their cardholder willingly disclosed such information to a scammer will often withdraw their fraud protection, leaving the cardholder on the hook for any financial losses. Cardholders wishing to sell their tradelines must be diligent in choosing a reputable brokerage company with good data practices.
Identifying Tradeline Scams
The Federal Trade Commission (FTC) provides a list of characteristics to help consumers identify credit piggybacking scams:
- Confusing pricing, hidden fees, and demands for ordinarily large payments prior to service
- Asking customers to dispute accurate information on their credit reports
- Encouraging customers to file false identity theft reports or lie on credit applications
- Using Credit Privacy Numbers (CPNs) or Employer Identification Numbers (EINs) to conceal poor credit histories
- Guaranteeing a huge rise in credit scores
- Guaranteeing mortgage and loan approvals for customers
- Lack of written contracts and refund policies
Any tradeline brokerage engaging in such practices is fraudulent and should be reported immediately to the FTC or a local consumer protection agency.6
Why does the FTC refer to piggybacking schemes?
Back in 2022, the FTC brought fraud charges against a tradeline company called The Credit Game.7 This company was actively encouraging its customers to commit credit fraud and promising amazing outcomes that were literally too good to be true—or legal. The company also took advantage of federal COVID-19 tax refunds and loans by pressuring consumers to invest them in the company’s business scams. The FTC found that The Credit Game violated several federal statutes, including the Credit Repair Organizations Act (CROA) of 1996, which forbids deceptive marketing of credit repair services.8
This distinction is why Priority commits to offering customers a safe, compliant, and transparent process for buying and selling tradelines. We do not accept CPNs or false identification from our customers. We provide clear pricing, use 264-bit SSL encryption to receive and process sensitive data, and encourage consumers to make informed choices around AU tradelines and credit repair. We also never ask for highly sensitive data—like card numbers or security PINs—that could expose sellers to identity theft or financial loss.
Who Should Not Sell Tradelines?
Cardholders with a high credit utilization or poor credit history should not sell tradelines. The AU benefit depends upon the credit account having an established history of at least 12 months, less than 10% utilization, and no late payments or charge-offs. Those who, in good faith, cannot commit to maintaining these standards over time would be better served by seeking other income streams. Letting good credit habits slip while renting out an AU slot could damage the buyer’s credit and impact anyone that is on the account.
Cardholders should also not attempt to sell tradelines if it violates their cardholder agreement, or if they feel uncomfortable with the risks.
Selling Tradelines with Priority
If selling tradelines still makes sense for you, Priority is ready to help. Our reputation, supported by hundreds of 5-star reviews, speaks to the trust we’ve earned through principled, professional service. To verify your eligibility or submit an application, please visit our Sell Tradelines page. For more answers to your tradeline questions, please see our FAQ page or contact us.
This article is for educational purposes only and should not be construed as financial or legal advice.
Sources
- Citi. “What Are Tradelines and How Do They Impact Credit?” Published Jun 18, 2025.
- U.S. Department of Justice, Civil Rights Division. “The Equal Credit Opportunity Act.” Updated Jan 2, 2025.
- Sofi. “What is Piggybacking Credit and How Does It Work?” Published May 16, 2024.
- Ent Credit Union. “Is it Wrong to Let Someone Use Your Credit Card?” Published Jun 10, 2025.
- Experian. “What is Credit Card Piggybacking?” Published Nov 10, 2023.
- Federal Trade Commission. “Consumer Advice. Fixing Your Credit FAQs.” Article. Published November 2023.
- “FTC Acts to Shut Down ‘The Credit Game’ for Running a Bogus Credit Repair Scheme that Fleeced Consumers.” Press release. Published May 6, 2022.
- “Credit Repair Organizations Act.” Legal Library, Statutes.
