Author Topic: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig  (Read 393230 times)


Car Jack

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A data point I've noticed with the new company is that on one of my cards, I mostly get AU requests from people who live within like 20 miles of me. I live in a major city with a significant immigrant population, I wonder if it is just coincidence, or, if they're keeping it to locals to make it seem like it's people I might reasonably know. 9 times out of 10, AUs on that card have been from addresses I might actually have driven past on my way to work.

You should stop on your way in, get out of the car and yell at the building "YOU'RE WELCOME!".

flashflooder

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I'm on the East coast and almost all of my adds are from CA.

ravevan

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How do you organize your cards and adds? Do you simply rely on the company to to send you the info on when to remove? Or do you keep an overall spreadsheet with all of your cards, remove dates, commission, etc? Or does anyone keep more detailed spreadsheets for each card with the names of those you added, dates, etc? Trying to be efficient.

secondcor521

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How do you organize your cards and adds? Do you simply rely on the company to to send you the info on when to remove? Or do you keep an overall spreadsheet with all of your cards, remove dates, commission, etc? Or does anyone keep more detailed spreadsheets for each card with the names of those you added, dates, etc? Trying to be efficient.

I keep an Excel spreadsheet.  One row per AU.  Columns are:  CL, expected commission, AU name, and then dates for:  AU added, purchase made, AU card received, AU card activated, received payment, removed AU, destroyed card.  Personally I also have ticklers in my todo folder for each of my piggybacking cards for two days after the closing dates to add a charge if I have active AUs.  That way there is a balance on the card the entire duration that an AU is on there.  @arebelspy doesn't do these subsequent purchases and he has reported that they're not necessary for piggybacking to work, but the companies recommend it and it's a small effort so I do it.
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ravevan

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What is your experience with citi AU's? Is any more than 2 adds in danger of getting flagged? Or are they more like Barclays with 5?

DavidAnnArbor

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I recently had 5 authorized users on my Citi card at one time. I just recently removed 3, and now down to 2 left.

ravevan

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How do you organize your cards and adds? Do you simply rely on the company to to send you the info on when to remove? Or do you keep an overall spreadsheet with all of your cards, remove dates, commission, etc? Or does anyone keep more detailed spreadsheets for each card with the names of those you added, dates, etc? Trying to be efficient.

I keep an Excel spreadsheet.  One row per AU.  Columns are:  CL, expected commission, AU name, and then dates for:  AU added, purchase made, AU card received, AU card activated, received payment, removed AU, destroyed card.  Personally I also have ticklers in my todo folder for each of my piggybacking cards for two days after the closing dates to add a charge if I have active AUs.  That way there is a balance on the card the entire duration that an AU is on there.  @arebelspy doesn't do these subsequent purchases and he has reported that they're not necessary for piggybacking to work, but the companies recommend it and it's a small effort so I do it.

Thank you. This is great.

ravevan

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I recently had 5 authorized users on my Citi card at one time. I just recently removed 3, and now down to 2 left.

That's good to know. How long did you keep five users on at one time?

chuckster

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How do you organize your cards and adds? Do you simply rely on the company to to send you the info on when to remove? Or do you keep an overall spreadsheet with all of your cards, remove dates, commission, etc? Or does anyone keep more detailed spreadsheets for each card with the names of those you added, dates, etc? Trying to be efficient.

I have a spreadsheet tab that lists: which card, request to add date, AU name, Order # from the portal, date added, date removed, amount owed, and date paid.

Because I'm an Excel nerd, the "date paid" column has both estimated and actual dates (the estimated ones are followed by a question mark "?", when the payment comes in it formats differently so it's easy to see), and underneath it totals up how much I expect to get paid in the calendar year, and then calculates the self-employment taxes I should expect to have taken out.

Elsewhere in my personal budget tab, it takes both the anticipated income and tax liability into account, and on my taxes tab it calculates the appropriate SEP IRA maximum contribution & eligible deduction.
« Last Edit: June 13, 2018, 03:03:30 PM by chuckster »

DavidAnnArbor

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I recently had 5 authorized users on my Citi card at one time. I just recently removed 3, and now down to 2 left.

That's good to know. How long did you keep five users on at one time?


I think for about a month.

Padonak

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How do you organize your cards and adds? Do you simply rely on the company to to send you the info on when to remove? Or do you keep an overall spreadsheet with all of your cards, remove dates, commission, etc? Or does anyone keep more detailed spreadsheets for each card with the names of those you added, dates, etc? Trying to be efficient.

I have a spreadsheet tab that lists: which card, request to add date, AU name, Order # from the portal, date added, date removed, amount owed, and date paid.

Because I'm an Excel nerd, the "date paid" column has both estimated and actual dates (the estimated ones are followed by a question mark "?", when the payment comes in it formats differently so it's easy to see), and underneath it totals up how much I expect to get paid in the calendar year, and then calculates the self-employment taxes I should expect to have taken out.

Elsewhere in my personal budget tab, it takes both the anticipated income and tax liability into account, and on my taxes tab it calculates the appropriate SEP IRA maximum contribution & eligible deduction.

How do you calculate SEP IRA? Would you be able to share the formula? Is it applicable to a person with a full time job who already contributes to  401K and ROTH IRA and is ineligible for a tax-deductible IRA?

chuckster

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How do you calculate SEP IRA? Would you be able to share the formula? Is it applicable to a person with a full time job who already contributes to  401K and ROTH IRA and is ineligible for a tax-deductible IRA?

Turbo Tax should be able to calculate how much you are eligible to contribute. I think with a 401K and Roth IRA you can still have an SEP IRA, but, the exact effect of your primary employer 401k on the limit you can contribute I don't know... I'm not close enough to the maximums to worry about it myself, so I haven't looked it up.

IIRC: Take your total earnings for the year from your 1099 Misc, Box 7. (Starting in 2018, I think you can first subtract 20% as a new "pass-through deduction", but I haven't gotten clarity yet on whether that applies to tradeline earnings). Then I estimate federal taxes owed based on my marginal federal rate, and state taxes I'll owe from my marginal state tax rate. Then, take 92.35% of your total from your 1099 Misc Box 7, and multiply that by 15.3%, to get what you owe in FICA. Half of that FICA can be your deduction for an SEP IRA.

To calculate the total you can actually contribute to the SEP IRA, take your 1099 Misc Box 7, subtract half of the above FICA to get a net income, and then 20% of that can be contributed to an SEP IRA (all the way up to $55,000, if you made like $300k in tradeline sales :P ).

All that should be checked with a tax advisor, yada yada, but the numbers I got in Excel matched what Turbo Tax gave me for 2017 and the Vanguard calculator (https://personal.vanguard.com/us/SbsCalculatorController), so, I think I'm right for me. You mileage may vary and all of that.

kpd905

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Glad to see I am not the only one sheltering some of this income with a SEP IRA.  Maybe a CPA on the forum could chime in regarding the passthrough deduction aspect.
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katsiki

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Glad to see I am not the only one sheltering some of this income with a SEP IRA.  Maybe a CPA on the forum could chime in regarding the passthrough deduction aspect.

Me too.  I think I learned about it from one of your posts too!
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DavidAnnArbor

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You can do a SEP-IRA and it's not limited by your 401k deductions, it's entirely separate.

You can also do an individual 401k but if you're already maxing out your employee deduction at your main job, then it may not be worth all the extra work to get an individual 401k going - since you'll be just entitled to the employer deduction part and therefore would be the same as the SEP-IRA.

Irinas

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hi guys,

it seems like FICO 8 experian doesnt include AU tradelines into their algorythm anymore, ie no boost is expected from AUs for experian FICO 8.

is the industry dead (now, soon, eventually)?

ravevan

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From what I understand, this has been true for at l ast 2 years but the industry is still going strong.

Irinas

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it was fine with credit check total (RIP since May 25th or something like that) but not fine with this new experian.com credit monitoring service

MasterStache

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Glad to see I am not the only one sheltering some of this income with a SEP IRA.  Maybe a CPA on the forum could chime in regarding the passthrough deduction aspect.

Short of not wanting to do all the math is it pretty safe to just throw 20% of whatever I earn in a SEP IRA? I did some part time work for my old company and earned quite a bit of non-taxed income on top of bank bonuses and selling tradelines.

katsiki

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Glad to see I am not the only one sheltering some of this income with a SEP IRA.  Maybe a CPA on the forum could chime in regarding the passthrough deduction aspect.

Short of not wanting to do all the math is it pretty safe to just throw 20% of whatever I earn in a SEP IRA? I did some part time work for my old company and earned quite a bit of non-taxed income on top of bank bonuses and selling tradelines.

Yes, in my opinion.

Vanguard and Fidelity both have calculators online as well to help.
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lmf

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Has anyone gotten mail for their AUs from a different credit card company than the one you added them to?  I added an AU to my US Bank card last summer and just got mail from Discover for them marked 'Statement enclosed'.  Like they used my address to open an account at Discover or something.  What do I do with it?  I was thinking of marking it 'Not at this address. Return to sender'.

jdecandia

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Hey everyone!

I have PM'd Arebelspy, but if his travelogue/blog is anything to go by he is probably out and about adventuring and has had little time to get back to my message.

I am wondering if any of you could PM me with suggestions for a reputable company or the experiences that you have had with your companies.

Thank you!

secondcor521

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Hey everyone!

I have PM'd Arebelspy, but if his travelogue/blog is anything to go by he is probably out and about adventuring and has had little time to get back to my message.

I am wondering if any of you could PM me with suggestions for a reputable company or the experiences that you have had with your companies.

Thank you!

PM sent to you with all the info.
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startbyservingothers

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From what I understand, this has been true for at l ast 2 years but the industry is still going strong.

I believe most banks use the "Mid Score"  (The second highest score.)  For mortgage approvals.  So if you boost at least 2 of their scores, then that is likely enough to get them approved.
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MsFrugalista

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Has anyone gotten mail for their AUs from a different credit card company than the one you added them to?  I added an AU to my US Bank card last summer and just got mail from Discover for them marked 'Statement enclosed'.  Like they used my address to open an account at Discover or something.  What do I do with it?  I was thinking of marking it 'Not at this address. Return to sender'.

Not sure about mail since I use a virtual mailbox and any mail that is not addressed to the specified recipients gets shredded automatically. However, I have received phone calls for AUs from banks not associated with the card I had added them to. I think these are banks/debt collectors who are looking for these individuals. I just state that they have reached the wrong number and they apologize and let me know my number will be removed. I have yet to receive more than one call for the same individual.

I used to provide my phone number for the AU (some banks require this when adding them online), but now I have stopped doing that and instead provide another number so I don't get such phone calls.
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katsiki

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Has anyone gotten mail for their AUs from a different credit card company than the one you added them to?  I added an AU to my US Bank card last summer and just got mail from Discover for them marked 'Statement enclosed'.  Like they used my address to open an account at Discover or something.  What do I do with it?  I was thinking of marking it 'Not at this address. Return to sender'.

No, sorry, no experience with that.  If it happens again, I might wonder more about it.  If you only see it once for 1 AU, I wouldn't worry about it.
"There are two ways to get enough. One is to continue to accumulate more and more. The other is to desire less." - G.K. Chesterton