Author Topic: Selling Tradelines / Piggybacking: $1000+/hr, 20-40k/yr. Side Gig  (Read 119062 times)

Rural

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #100 on: July 24, 2016, 05:54:29 PM »
If I jumped on this crazy train,  does anyone know if adding these AUs would have a negative impact on our potential mortgage loan? I have stopped opening new cards until we are done with the home buying  process, but if this doesn't hurt the way a hard pull would, then maybe i can try it out

There is literally zero impact to your credit score, adding or removing an AU.  There are no credit pulls done.

Only, like I mentioned, if a card is closed, it can impact your score (by having less available credit, so raising your DTI by default).  It won't change your DTI for the mortgage calculations though, obviously.  And any card closure wouldn't happen soon, if at all. 

Like with other caveats, if it makes you uncomfortable, don't do it, but I don't see a reason why starting this should affect buying a house (or the interest rate you get, or anything) in any way.


If the house purchase is quite soon, a lender might possibly want to look at where the direct deposits are coming from.

arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #101 on: July 24, 2016, 06:54:30 PM »
If I jumped on this crazy train,  does anyone know if adding these AUs would have a negative impact on our potential mortgage loan? I have stopped opening new cards until we are done with the home buying  process, but if this doesn't hurt the way a hard pull would, then maybe i can try it out

There is literally zero impact to your credit score, adding or removing an AU.  There are no credit pulls done.

Only, like I mentioned, if a card is closed, it can impact your score (by having less available credit, so raising your DTI by default).  It won't change your DTI for the mortgage calculations though, obviously.  And any card closure wouldn't happen soon, if at all. 

Like with other caveats, if it makes you uncomfortable, don't do it, but I don't see a reason why starting this should affect buying a house (or the interest rate you get, or anything) in any way.


If the house purchase is quite soon, a lender might possibly want to look at where the direct deposits are coming from.

Ooh, great point.  If your down payment is coming from the same account that you have these payments deposited into, they certainly might (and VERY likely will) ask where those deposits came from (a post-9/11 banking regulation relating to potential money laundering for terrorism, I believe).

Basically they'll want to "source" the funds of the down payment.

I'd use a different account for those deposits as your down payment account, and just provide them with the statements for the account the down payment is coming from (and make sure to have that money sitting in there for, IIRC, 3 months--talk with your mortgage broker on the regs on this one).

Good catch, Rural!
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Rural

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #102 on: July 24, 2016, 07:26:11 PM »
If I jumped on this crazy train,  does anyone know if adding these AUs would have a negative impact on our potential mortgage loan? I have stopped opening new cards until we are done with the home buying  process, but if this doesn't hurt the way a hard pull would, then maybe i can try it out

There is literally zero impact to your credit score, adding or removing an AU.  There are no credit pulls done.

Only, like I mentioned, if a card is closed, it can impact your score (by having less available credit, so raising your DTI by default).  It won't change your DTI for the mortgage calculations though, obviously.  And any card closure wouldn't happen soon, if at all. 

Like with other caveats, if it makes you uncomfortable, don't do it, but I don't see a reason why starting this should affect buying a house (or the interest rate you get, or anything) in any way.


If the house purchase is quite soon, a lender might possibly want to look at where the direct deposits are coming from.

Ooh, great point.  If your down payment is coming from the same account that you have these payments deposited into, they certainly might (and VERY likely will) ask where those deposits came from (a post-9/11 banking regulation relating to potential money laundering for terrorism, I believe).

Basically they'll want to "source" the funds of the down payment.

I'd use a different account for those deposits as your down payment account, and just provide them with the statements for the account the down payment is coming from (and make sure to have that money sitting in there for, IIRC, 3 months--talk with your mortgage broker on the regs on this one).

Good catch, Rural!


I do believe I've learned some things around here. :-)

whodidntante

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #103 on: July 24, 2016, 09:00:22 PM »
What about Elan cards? I have a non rewards Visa with them that I could afford to lose.

arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #104 on: July 24, 2016, 09:08:16 PM »
What about Elan cards? I have a non rewards Visa with them that I could afford to lose.

Funny you ask about them--you're actually the second person to mention them to me.

I also have a card with them (issued by Associated Bank), I asked the company I use about it a bit ago, and they told me "We have not worked with Elan Financial Services, but if you're interested in using it, I'd have you check into if it would work for our program."  I never ended up following up on it though.

So the company I use is a "maybe" on that--be curious to hear if you find any that do use it.  :)
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #105 on: July 24, 2016, 09:45:12 PM »
It's gonna be a 1099 misc. They won't withhold taxes. So you'll have to track that on your own.
How do I figure out how much to with hold?

It'll be at your marginal rate for federal and state tax, then 15.3% FICA self employment tax.

Here are the current tax brackets: http://taxfoundation.org/article/2016-tax-brackets

So for Colorado and Federal and FICA is 4% + 25% + 15% = 44% taxes?  Holy sh!t.

would this qualify you for a SEPP IRA?

PAstash

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #106 on: July 24, 2016, 10:05:03 PM »
Odd thought. We're in the process of selling my DH's family home to his cousin. I don't know what her credit is like (probably not bad, but not all that good since she's a single mom who's a teacher), but I'm now thinking that adding her as an AU on a card might help her qualify for a better rate. Have to think about that.

Very likely.  :)

So if this is the difference between them making their rent payment or not, due to less interest paid on their car, or the difference between them getting to keep it and having it repossessed, or whatever, that seems like a good thing, to me.

Correct me, of course, if I'm misrepresenting you here, ARS...

If I'm recalling correctly, this aligns with your take on Kiva. i.e., I think you once said you don't like or support Kiva charging crazy-high interest. You and I feel differently about Kiva, which is totally fine, of course. But I appreciate the consistency in your take, and am happy to point out here that this activity is not one you apply only to make personal cash—it's a perspective you apply in various scenarios, whether you are making money or not, and including when you give charitably. You are ethically opposed to crazy high interest. You like increasing people's access to necessities. You see a relationship between high interest and some people's inability to eat or be sheltered. You see differences in 'legal', 'legalistic', 'moral', and 'ethical'.

I appreciate all of that.

(And thanks for responding to my Canada q.)

Yup, absolutely.  I hadn't thought about the connection, but you put it beautifully. 

I think we all draw different lines in different places, and have our own ideas of what is moral/ethical, and it's important to know what your values are, and live accordingly.

:)

Been following this conversation. My hat goes off to the two of you for the level headed polite discourse.

johnny847

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #107 on: July 25, 2016, 03:49:02 PM »
This is all very interesting. Still haven't decided if I'd be comfortable with it.

A question and an observation

You said occasionally you'll get mail addressed to a previous authorized user. Has that ever tripped you up with identity verification questions? The kind you get when opening a bank account online - typically three multiple choice questions. A couple times I've been asked who I've lived with.

I surmise that the company you work with ARS doesn't use Amex cards because they ask for the SSN of the AU.

arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #108 on: July 25, 2016, 05:12:51 PM »
You said occasionally you'll get mail addressed to a previous authorized user. Has that ever tripped you up with identity verification questions? The kind you get when opening a bank account online - typically three multiple choice questions. A couple times I've been asked who I've lived with.

I've had the situation you've described a lot (answering questions to verify your identity--sometimes I'm frantically googling to remember the name of the of a particular county I lived in, or trying to remember which mortgage company originated a certain mortgage on a rental property) but I've never had a "who you've lived with" question.

I have had a "Which of these addresses is associated with [family member's name]"?  I guess in theory that could happen?  It doesn't seem likely to me, but I honestly don't know.  It's not something I'd worry about, personally (and there's always other ways to authenticate yourself if you get them wrong, it's just a hassle sometimes where you'd have to call instead of doing it online, or whatever).

Quote
I surmise that the company you work with ARS doesn't use Amex cards because they ask for the SSN of the AU.

No, I think Amex just report differently.  Same reason they can't use business ones--they just don't help the AU's score in the same way.

Most of the ones they work with ask for the SSN of the AU--that is provided to you (I can't recall which of my cards ask for SSN and which don't, but I know most do, I think there's only one that just wants name/address/DOB).  And yes, you have enough info to steal the identity of the AU, but you do sign a contract about what you will do with that information.  Though if you're the type to try identity theft, you're probably the type to ignore a contract.  But also these aren't typically IDs you'd want to steal, given their poor credit they're trying to lift.  ;)
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johnny847

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #109 on: July 25, 2016, 05:26:45 PM »
You said occasionally you'll get mail addressed to a previous authorized user. Has that ever tripped you up with identity verification questions? The kind you get when opening a bank account online - typically three multiple choice questions. A couple times I've been asked who I've lived with.

I've had the situation you've described a lot (answering questions to verify your identity--sometimes I'm frantically googling to remember the name of the of a particular county I lived in, or trying to remember which mortgage company originated a certain mortgage on a rental property) but I've never had a "who you've lived with" question.

I have had a "Which of these addresses is associated with [family member's name]"?  I guess in theory that could happen?  It doesn't seem likely to me, but I honestly don't know.  It's not something I'd worry about, personally (and there's always other ways to authenticate yourself if you get them wrong, it's just a hassle sometimes where you'd have to call instead of doing it online, or whatever).

Yeah I agree. It's mostly just a hassle.  But there was at least one occasion where it was more than just a hassle though. I was planning on opening a bank account and funding the account with a cc (after checking datapoints on which cards wouldn't run it as a cash advance). I failed the online verification questions, and it told me to go in branch to open the account. I was able to do so without issue, but I wasn't able to fund with a cc as a purchase.

Quote
I surmise that the company you work with ARS doesn't use Amex cards because they ask for the SSN of the AU.

No, I think Amex just report differently.  Same reason they can't use business ones--they just don't help the AU's score in the same way.

Most of the ones they work with ask for the SSN of the AU--that is provided to you (I can't recall which of my cards ask for SSN and which don't, but I know most do, I think there's only one that just wants name/address/DOB).  And yes, you have enough info to steal the identity of the AU, but you do sign a contract about what you will do with that information.  Though if you're the type to try identity theft, you're probably the type to ignore a contract.  But also these aren't typically IDs you'd want to steal, given their poor credit they're trying to lift.  ;)

I doubt that. I added my mom as an AU once and it showed up on her credit report.

Business credit cards are completely different. Most banks don't report those to personal credit reports, only business credit reports.


But man that's kind of crazy that they give you the SSN of the AU. I mean I understand how it can be necesssary depending on the bank, but damn.

CmFtns

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #110 on: July 25, 2016, 05:45:54 PM »
So ARS all this information your giving about credit card companies accepted or #tradelines per card or your payment amount; Is this information relevant to the whole industry or are you just referring to how the service/company that you use does things?

If you are just talking about the company you use you said they don't use AMEX or business cards... Do you know if there is there any other specific cards or types of cards that they do not accept.... Haven't seen Capital One mentioned?
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arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #111 on: July 25, 2016, 05:54:07 PM »
I added my mom as an AU once and it showed up on her credit report.

Just checked--like I said, Amex does report differently, it reports it as a new line (i.e. without the full history of the account).  So it will show up on their account, like with your mom, it just won't help as much, so they don't use them.

Hope that helps explain it!  I wish they did use Amex, I'd have another half dozen lines or so to add!  :P

So ARS all this information your giving about credit card companies accepted or #tradelines per card or your payment amount; Is this information relevant to the whole industry or are you just referring to how the service/company that you use does things?

I'm trying to post general information about the selling of tradelines to make Mustachians aware of it.  Most of the information is relevant to the idea as a whole, and where it's specific to the company I use, I've tried to make note of that (e.g. several times I've said "it's dependent on the company you use, but the one I use...").

None of them accept business cards, from what I understand.  A few do Amex, I believe, but you get hardly any sales, if any, due to the reasons I stated above.  I couldn't find any good trade line companies doing Amex (for example, ones who don't use CPNs, as discussed earlier).

If you are just talking about the company you use you said they don't use AMEX or business cards... Do you know if there is there any other specific cards or types of cards that they do not accept.... Haven't seen Capital One mentioned?

It depends on the company.  Capital One works with the company I use--I have a Capital One card enrolled myself.
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johnny847

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #112 on: July 25, 2016, 05:57:10 PM »
I added my mom as an AU once and it showed up on her credit report.

Just checked--like I said, Amex does report differently, it reports it as a new line (i.e. without the full history of the account).  So it will show up on their account, like with your mom, it just won't help as much, so they don't use them.

Hope that helps explain it!  I wish they did use Amex, I'd have another half dozen lines or so to add!  :P

Oh hmm. Yeah I didn't ask her if it showed my full account history or a new line. That explains it.

flan

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #113 on: July 25, 2016, 06:12:03 PM »
arebelspy: This is SUPER interesting! I haven't had enough time to absorb all that it entails to make an educated / morality call for myself, yet, but I absolutely admire your helpfulness as well as your bravery in sharing your experiences in the edgy practice of tradelines!

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #114 on: July 25, 2016, 06:37:31 PM »
I have a few cards maturing soon, I think within a few months. I'll give it a shot.

lexalex

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #115 on: July 26, 2016, 05:19:34 AM »
this sounds interesting definitely!  would they have to be bank based cards?  e.g. would store or school sponsored cards work?

mynewchoice

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #116 on: July 26, 2016, 07:03:48 AM »
Obviously a 10 year old card with 30,000 credit line helps someone's score way more than a two years old card with a 10,000 line.  So people are more likely to buy it.  You get paid more for having a larger credit line, age doesn't change your payment amount, but it does make it more likely to sell out.

Emphasis added, as I wanted to clarify this based on feedback that I received from the same company ARS is using.  For accounts that are older than 15 years, they will provide a personalized quote for how much you can earn per tradeline.  In my case, I simply emailed them with the card, credit limit and age and they emailed me back with how much that card would earn.  For the record, I have not yet signed up as I am still discussing this with my wife (she is more conservative and has some concerns).

Cyanne

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #117 on: July 26, 2016, 07:05:51 AM »
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boarder42

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #118 on: July 26, 2016, 08:02:45 AM »
Obviously a 10 year old card with 30,000 credit line helps someone's score way more than a two years old card with a 10,000 line.  So people are more likely to buy it.  You get paid more for having a larger credit line, age doesn't change your payment amount, but it does make it more likely to sell out.

Emphasis added, as I wanted to clarify this based on feedback that I received from the same company ARS is using.  For accounts that are older than 15 years, they will provide a personalized quote for how much you can earn per tradeline.  In my case, I simply emailed them with the card, credit limit and age and they emailed me back with how much that card would earn.  For the record, I have not yet signed up as I am still discussing this with my wife (she is more conservative and has some concerns).

care to divulge any of these details. i'm curious.
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mynewchoice

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #119 on: July 26, 2016, 08:34:17 AM »
Obviously a 10 year old card with 30,000 credit line helps someone's score way more than a two years old card with a 10,000 line.  So people are more likely to buy it.  You get paid more for having a larger credit line, age doesn't change your payment amount, but it does make it more likely to sell out.

Emphasis added, as I wanted to clarify this based on feedback that I received from the same company ARS is using.  For accounts that are older than 15 years, they will provide a personalized quote for how much you can earn per tradeline.  In my case, I simply emailed them with the card, credit limit and age and they emailed me back with how much that card would earn.  For the record, I have not yet signed up as I am still discussing this with my wife (she is more conservative and has some concerns).

care to divulge any of these details. i'm curious.

For my situation, I have a Discover card that is currently at 14.5 years in age with a $20k limit so the standard offer would be $225 per AU.  While this card isn't quite at the 15+ year level, I asked and they offered this card at $300 per AU.  The other card I asked about was a Synchrony card that is at 23 years in age with a $10k limit so the standard offer would be $175 per AU, however due to the age they offered $262.50 per AU.

With these two cards, I could earn an extra $162.50 per AU due to the age of each card being at or above the 15 year level.

Hope that helps, but let me know if there are any other questions.

frugalorganic

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #120 on: July 26, 2016, 11:07:12 AM »
I want to do this, but my issue is the fact that you have to provide your SSN for the W9 form, and bank account number to the company that you are working with in order to get paid.  I am hesitant due to the fact if they have my SSN, bank account number, and now the credit card names and limits that I have, what's to say this info doesn't fall into the wrong hands, and my identity gets stolen?  I haven't found anything negative about the company, but I still feel like I would be opening up myself to risk, and is it worth it...

DrF

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #121 on: July 26, 2016, 11:34:59 AM »
When you add an authorized user, does the credit card company automatically send out a card for that person? Can you contact your CC company and stop it?

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #122 on: July 26, 2016, 01:19:03 PM »
When you add an authorized user, does the credit card company automatically send out a card for that person? Can you contact your CC company and stop it?

The default will be (should be) to have the card sent to your address, so they won't get your card unless you authorize your bank to send it to them. You can just destroy it when you get it in the mail.

boarder42

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #123 on: July 26, 2016, 01:21:17 PM »
When you add an authorized user, does the credit card company automatically send out a card for that person? Can you contact your CC company and stop it?

this has been answered already a few times in the thread. Including ARS's OP which was very thorough.
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #124 on: July 26, 2016, 01:59:56 PM »
I just read an interesting article on piggybacking and FICO 8 credit score reporting here.

In the article it says "Authorized user accounts will continue to be included in FICO 8 credit scores, but the new model will make a distinction between legitimate authorized user accounts and those that were purchased for credit improvement purposes only."

From FICO's website, "The hallmarks of FICO scores have been quality and innovation, and this technology advance is a great example," said Lisa Nelson, vice president of Global Scoring for Fair Isaac. "This breakthrough resolves an industry problem that we know has perplexed lenders and concerned regulators. We have developed technology that will reduce any impact on the FICO 08 score from intentional tampering, while allowing the scores of spouses and other genuine authorized users to benefit from their shared credit experience. This kind of innovation is why Fair Isaac's analytic scientists are regarded as the best in the world."

Is this just PR? It seems like there would be many instances where the analytics would incorrectly mark a "legitimate" authorized user as illegitimate. If FICO really can and does mark illegitimate authorized user's credit reports, then the service the credit repairing agencies offer will be of less and less value as more large companies adopt the FICO 8 scoring system. But, Fannie Mae and Freddy Mac don't use FICO 8 and seem to be switching to a different model called VantageScore, which uses a 2 year history vs a current snapshot (FICO). I'm not sure what this would do to the applications of people purchasing credit repair through piggybacking.

The major implication and an argument against signing up your credit cards with a piggybacking company is this: If piggybacking is less and less beneficial to customers of credit repair companies, then how ethical is it for you to take money from an already disadvantaged person for a service that isn't helping them?

The real questions that need to be addressed are: How much is this helping an individual with damaged credit? How long will this service be beneficial based on changes to industry practice? Are customers being told the truth about how big or little an impact this service has on their credit score?

If you sign up your cards and get paid for a useless service that preys on the ill-informed, could you live with that?

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #125 on: July 26, 2016, 02:44:08 PM »
One word for this:
BADASSITY


thanks for sharing. Will do some research and jump on the crazy train.
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #126 on: July 26, 2016, 02:55:20 PM »
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #127 on: July 26, 2016, 03:27:38 PM »
this sounds interesting definitely!  would they have to be bank based cards?  e.g. would store or school sponsored cards work?

Depends on who the issuer of the card is is (e.g. Chase, Barclay, Amex etc.) -- the "branding" on the card doesn't matter.  As long as it reports like a normal CC on one's credit report, it should work.

With these two cards, I could earn an extra $162.50 per AU due to the age of each card being at or above the 15 year level.

Really good to know, thanks!  I have some opened from 2002 and 2003, I may need to "renegotiate" here soon.  ;)

When you add an authorized user, does the credit card company automatically send out a card for that person? Can you contact your CC company and stop it?

Nope, the AU never receives a card, and has no way to request one.  If you get one issued, it will go to your address (you don't have to have one issued with some companies).

If you sign up your cards and get paid for a useless service that preys on the ill-informed, could you live with that?

This would quickly go away if it was no longer effective.  The company I use is very aggressive with their guarantees to authorized users--if an account doesn't post (even if you added them), they refund them.  I like this--I'd rather not get paid then them get screwed.  I'm sure some of the sketchy companies might take advantage, but the person's credit report must post them and see the  score improvement, or they get their money back, from the one I use.  So this is not a concern, for me personally.

The scoring model getting changed would be a bummer, but understandable (I think I'd even be for that change), so like I said, I'll take advantage of this while it exists, until (if) it goes away.
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katsiki

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #128 on: July 26, 2016, 04:48:29 PM »
I want to do this, but my issue is the fact that you have to provide your SSN for the W9 form, and bank account number to the company that you are working with in order to get paid.  I am hesitant due to the fact if they have my SSN, bank account number, and now the credit card names and limits that I have, what's to say this info doesn't fall into the wrong hands, and my identity gets stolen?  I haven't found anything negative about the company, but I still feel like I would be opening up myself to risk, and is it worth it...

One way to mitigate some of that risk would be to setup a separate bank account.  It's pretty easy to setup a Discover checking or one of the other online banks.
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #129 on: July 27, 2016, 05:12:21 AM »
FWIW, I checked on the tax question for those asking.

For the company I use, the income is in box 7, "nonemployee compensation" on the 1099 you are issued.  You likely will have to pay self-employment tax on this, so keep that in mind for any quarterly estimates you pay, or, of course, if you do a self/solo/SEP 401k or IRA (I'm not up on all the differences, so consult with your tax professional), this can go towards that.

And, of course, as brewer has noted, it's pretty much free money, so having to pay taxes on it, while a bummer, still is better than not having it--it will pay for its own taxes, and then the rest above that is profit.  But yes, taxes will cut into your gross (and $/hour)--I leave you to calculate that based on your own tax rate, if interested.

For people starting now, you'll get your first trade line sales in August, paid end of Sept, so won't need to worry about it too much until the 4th quarter anyways, if you do quarterly estimated payments.  Otherwise you can just settle up in April when you plug that 1099 into your tax return (or hand it to your accountant, as the case may be).

Just wanted to update with an answer to that, even if it wasn't great news.  :)
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #130 on: July 27, 2016, 05:39:52 AM »
FWIW, I checked on the tax question for those asking.

For the company I use, the income is in box 7, "nonemployee compensation" on the 1099 you are issued.  You likely will have to pay self-employment tax on this, so keep that in mind for any quarterly estimates you pay, or, of course, if you do a self/solo/SEP 401k or IRA (I'm not up on all the differences, so consult with your tax professional), this can go towards that.

And, of course, as brewer has noted, it's pretty much free money, so having to pay taxes on it, while a bummer, still is better than not having it--it will pay for its own taxes, and then the rest above that is profit.  But yes, taxes will cut into your gross (and $/hour)--I leave you to calculate that based on your own tax rate, if interested.

For people starting now, you'll get your first trade line sales in August, paid end of Sept, so won't need to worry about it too much until the 4th quarter anyways, if you do quarterly estimated payments.  Otherwise you can just settle up in April when you plug that 1099 into your tax return (or hand it to your accountant, as the case may be).

Just wanted to update with an answer to that, even if it wasn't great news.  :)

you can file it as misc income to avoid the fee.  but there is a break even point if you're close to the SSA max in total compensation where funding a SEP IRA and paying the self employment tax wins.  since the SSA will drop off after 118500 in earned income for 1 individual.  this year since i'll probably only make a couple grand on this it will be filed as Misc income.

Also after extensive research n my other money making hobby the SEP IRA typically will come out ahead on MISC income such as this. if you already have work 401k's
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #131 on: July 27, 2016, 05:49:16 AM »
Okay, cool, thanks!

I'm an idiot when it comes to taxes, so approximately 4% of that made sense to me.  I'm just going to hand the 1099 to my accountant (and use the extent of my knowledge of the fact that I'm overseas to ask if I can exclude it as foreign earned income..crossing my fingers?), and I don't want this to get dragged into an off topic debate of taxes/ways to optimize self-employment income/etc., but hopefully the above info from my post about how it's reported, and boarder's post about ways that might affect you will be enough for those of you who do your own taxes to figure out what you need.  :)
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #132 on: July 27, 2016, 11:21:02 AM »
I've asked the contact at the tradeline place you recommended, ARS, whether there's a way to register the card such that payments go directly to a charity - specifically the charity I set up for Rohingya refugee kids, (you know all about it ARS)*.

If there's a way to do this, I could propose that potential donors sign up a card. $250 a month is a teacher's salary. Well, it's the salary for someone willing to work for so little. If I could get 10+ cards signed up, I could start paying proper wages that might attract highly skilled teachers to teach the Rohingya refugee kids. That'd be serious bang for the buck.

*FYI ARS: I'm providing the IRS with final info to get the 501c3 approval - it's looking good - should be granted within a month or so.

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #133 on: July 27, 2016, 12:08:40 PM »
what is a legit website to do this through?

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #134 on: July 27, 2016, 12:18:33 PM »
what is a legit website to do this through?

PM ARS
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arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #135 on: July 27, 2016, 02:26:55 PM »
what is a legit website to do this through?

PM ARS

Yup!  Like I said in the OP:
Quote
Again, if you want a referral to the company I use, feel free to PM me, but I don't want this to turn into spam/shilling for certain companies--I imagine once this hits google, it will be on the radar of some of those companies, and I'd rather keep the spam out.

Keeping this thread about information about the idea itself would be ideal. :)

Full disclaimer: I'll probably ask you to mention I referred you.  You don't have to, but it would be nice. ;)  It won't change the amount you're paid, of course.  I don't think I've ever posted a referral or affiliate link on MMM, but decided to mention it to people when referring them to this, simply because it is more work PMing people with info to try and keep this thread focused, and there's no downside to using me as a referral--though, like I mentioned, you don't have to, totally optional. :)

I've asked the contact at the tradeline place you recommended, ARS, whether there's a way to register the card such that payments go directly to a charity - specifically the charity I set up for Rohingya refugee kids, (you know all about it ARS)*.

If there's a way to do this, I could propose that potential donors sign up a card. $250 a month is a teacher's salary. Well, it's the salary for someone willing to work for so little. If I could get 10+ cards signed up, I could start paying proper wages that might attract highly skilled teachers to teach the Rohingya refugee kids. That'd be serious bang for the buck.

*FYI ARS: I'm providing the IRS with final info to get the 501c3 approval - it's looking good - should be granted within a month or so.

Neat idea!  :D

They'd need the ability to have one person doing the adding, but a different entity (the 501c3) getting the payment.  That might open them up for potential tax dodging/fraud issues... but maybe not, just trying to speculate why it might not work--hopefully it will.

And you know I've been waiting for that approval!  ;)
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #136 on: July 27, 2016, 02:31:55 PM »
I've thought about setting up each card to pay a recurring amount to a specific charity to make sure the card is being used and will report to the bureaus. No reason that you couldn't support someone that way. Obviously this doesn't get rid of paying taxes on the proceeds, but for me this helps me feel like I'm contributing to something other than my bottom line.

Don't get me wrong, I'm keeping most of it =). I want some compensation for the (hopefully minimal) risk.

boarder42

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #137 on: July 29, 2016, 08:01:05 AM »
so if you do file as a business would the annual fees be write offs?
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arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #138 on: July 29, 2016, 11:04:34 AM »
so if you do file as a business would the annual fees be write offs?

I'm bad at taxes, so check with your accountant, but yes, that would be my understanding, costs related to this "business" (as the IRS sees it) of selling trade lines could be deducted from the income received as expenses.
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #139 on: July 29, 2016, 12:13:43 PM »
so if you do file as a business would the annual fees be write offs?

I'm bad at taxes, so check with your accountant, but yes, that would be my understanding, costs related to this "business" (as the IRS sees it) of selling trade lines could be deducted from the income received as expenses.

Yup, the annual fees would go on Schedule C as business expenses.  But if you choose that direction, you would have to pay SE taxes.
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boarder42

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #140 on: July 29, 2016, 12:59:40 PM »
so if you do file as a business would the annual fees be write offs?

I'm bad at taxes, so check with your accountant, but yes, that would be my understanding, costs related to this "business" (as the IRS sees it) of selling trade lines could be deducted from the income received as expenses.

Yup, the annual fees would go on Schedule C as business expenses.  But if you choose that direction, you would have to pay SE taxes.

correct and if i go that way it would only be b/c it made sense in total return dollar amount (i'm pushing the SSA limit at my current job) so if i can shelter 20% of my earnings from 31% tax into a SEP IRA it makes more and more sense the closer i get to 118500
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hoping2retire35

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #141 on: July 29, 2016, 01:51:19 PM »
AWESOME!

Can't wait, I have got a discover card waiting in the wings for this. Have to check but a few other cards are around the 10k limit.
As to the morality: usury is pretty immoral so anytime I can help someone out from paying more of it the better.
As to the legality: this is glitch that only takes a simply agreement among credit bureaus to fix, its a hack and can stop at anytime; might as well enjoy the ride as long as it last.

EDIT; even forbes plainly says to get added as an AU to boost your credit score, granted it says ask family or friends, but for legality purposes I don't think it makes any difference to do this in the manner discussed.
http://www.forbes.com/sites/moneybuilder/2014/05/02/11-ways-to-raise-your-credit-score-fast/#1eb9f4017162

I read several comments related but not sure if it was asked/answered just this way.
If my CC is linked to my main back account (the one it would be deposited to) would they notice the transaction and shut down my card? Like a discover credit card and a discover bank account (where the DD is being deposited).
« Last Edit: July 29, 2016, 02:18:42 PM by hoping2retire35 »

boarder42

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #142 on: July 29, 2016, 02:47:41 PM »
AWESOME!

Can't wait, I have got a discover card waiting in the wings for this. Have to check but a few other cards are around the 10k limit.
As to the morality: usury is pretty immoral so anytime I can help someone out from paying more of it the better.
As to the legality: this is glitch that only takes a simply agreement among credit bureaus to fix, its a hack and can stop at anytime; might as well enjoy the ride as long as it last.

EDIT; even forbes plainly says to get added as an AU to boost your credit score, granted it says ask family or friends, but for legality purposes I don't think it makes any difference to do this in the manner discussed.
http://www.forbes.com/sites/moneybuilder/2014/05/02/11-ways-to-raise-your-credit-score-fast/#1eb9f4017162

I read several comments related but not sure if it was asked/answered just this way.
If my CC is linked to my main back account (the one it would be deposited to) would they notice the transaction and shut down my card? Like a discover credit card and a discover bank account (where the DD is being deposited).

i dont think so ... discover is one of the better cards in this system too
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arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #143 on: July 29, 2016, 02:52:29 PM »
If my CC is linked to my main back account (the one it would be deposited to) would they notice the transaction and shut down my card? Like a discover credit card and a discover bank account (where the DD is being deposited).

I guess theoretically that could happen, if they knew the name of the company making the deposit into your account, checked the activity on the AU, etc.  I think it's extremely unlikely, and AFAIK there are no cases of it happening, but opening up a free "throwaway" bank account to deposit the money into it's a terrible idea if you want to be extra cautious.

FYI, I'm not bothering to do so (which probably tells you what I think since I'm putting my money where my mouth is, using multiple Bank of America cards and depositing into a B of A checking account), but can understand why one might.  :)
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TomTX

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #144 on: July 29, 2016, 06:42:54 PM »
Any guidance on requesting repeat credit limit increases? 6 months in between?

I have a 20 year old Discover, only had a $3,600 limit. Called in and they boosted it to $6,600. Obviously, I would like it to be over $10,000. However, I don't want to trip any red flags.
Credit card signup bonuses:

$150 bonus on $500 spend for Chase Freedom:
https://www.referyourchasecard.com/2/MU4TDQ1N3K

$50 bonus (no min spend, just use it once) plus double all cash back at the end of 1 year for Discover, including the initial $50:
https://refer.discover.com/s/37e3u

$500 bonus on $4,000 spend for Chase Sapphire Preferred:
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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #145 on: July 29, 2016, 07:04:47 PM »
Any guidance on requesting repeat credit limit increases? 6 months in between?

I have a 20 year old Discover, only had a $3,600 limit. Called in and they boosted it to $6,600. Obviously, I would like it to be over $10,000. However, I don't want to trip any red flags.
Best way is to call and ask. For reason, just say I wanted to make some bigger purchases (What else would a consuma sucka use a CC for?)
In some ways, they might be limiting your credit limit based on your credit total, and there is nothing they can do because the formula is spitting out a denied.

To be perfectly honest, I don't know why they would keep increasing the limit when utilization is low. But apparently they give out raises without hassle every 6 months or so, so maybe just wait for it to ripen.

Another great tip is that if you have multiple CC, you can call in and transfer credit limit from one CC in to another. Since the net change is zero, this won't get denied, although I think they did mention it would be a hard pull. In this way, you can get one card limit higher, and let the other age.

katsiki

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #146 on: July 29, 2016, 07:28:06 PM »
It varies by company.  Citi, I believe, does a CLI every 6 months without a credit check.  You can do it completely online.  Discover seems to allow it more frequently and will tell you if a hard pull is needed.  I am sure you could google your different cards to find out.
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TomTX

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #147 on: July 29, 2016, 08:51:55 PM »
I did do some initial googling, but it seems most everything credit card related gives a lot of garbage/overly simplistic/I'm just making clickbait type results.
Credit card signup bonuses:

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https://www.referyourchasecard.com/2/MU4TDQ1N3K

$50 bonus (no min spend, just use it once) plus double all cash back at the end of 1 year for Discover, including the initial $50:
https://refer.discover.com/s/37e3u

$500 bonus on $4,000 spend for Chase Sapphire Preferred:
https://www.referyourchasecard.com/6/Z8JIP66H7G

arebelspy

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #148 on: July 30, 2016, 01:59:20 AM »
Like it was mentioned above, generally every 6 months, but sometimes you can go more frequently.  I'd start using the card a bit--even just a transaction or two each month--and paying it off.  If you've had it sitting in a drawer, not having any activity, they may be reluctant to suddenly jump up the available credit a ton.  A lot of times it's all automated, and that can be a factor (recent payment history on the individual card).    So use it a bit, then try to increase it again.  Chase is nice because of being able to easily move credit around between cards, but IDK which other companies do that.
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TomTX

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Re: Selling Tradelines / Piggybacking: $600+/hr, 20-40k/yr. Side Gig
« Reply #149 on: July 30, 2016, 07:30:35 AM »
It's been getting some use - the 5% rotating categories (Last quarter: Restaurants when my employer is paying during travel. This quarter: Amazon) - and they did bump it over 80% when I called. Online, it seems that people are getting recommended to request a 10-25% bump.
Credit card signup bonuses:

$150 bonus on $500 spend for Chase Freedom:
https://www.referyourchasecard.com/2/MU4TDQ1N3K

$50 bonus (no min spend, just use it once) plus double all cash back at the end of 1 year for Discover, including the initial $50:
https://refer.discover.com/s/37e3u

$500 bonus on $4,000 spend for Chase Sapphire Preferred:
https://www.referyourchasecard.com/6/Z8JIP66H7G