Understanding Trade Lines

Marvin Francois discusses trade lines, explaining their types, benefits, and risks. He advises on when to use trade lines, how to obtain them, and compares them to secured credit cards. Francois emphasizes that trade lines are a strategy to build credit, not a guaranteed solution. He warns about potential pitfalls and suggests careful vetting of trade line sources.

What is a trade line?

• A line of credit on your credit report

• A type of investment

• A savings account

• A type of loan

What are the two types of trade lines?

• Primary and Co-signed

• Primary and Joint

• Primary and Authorized User

• Primary and Secondary

When should you consider getting a trade line?

• When you want to close your credit accounts

• When you have little to no credit or after repairing your credit

• When you have excellent credit

• When you want to invest in stocks

What is a common misconception about trade lines?

• They are only for businesses

• They are the same as secured cards

• They do not affect your credit score

• They are the end-all be-all for building credit

What should you check before becoming an authorized user on someone's credit card?

• Their credit utilization and payment history

• Their income

• Their employment status

• Their bank balance

What can negatively affect your credit score when using a trade line?

• The primary account holder's late payments

• The primary account holder's high income

• The primary account holder's job change

• The primary account holder's new credit card

Where can you purchase trade lines?

• From banks

• From real estate agents

• From stock markets

• From companies that sell trade lines

What should you be cautious of when purchasing trade lines from companies?

• High interest rates

• Scammers

• Low credit limits

• Long approval times

What is a key difference between trade lines and secured cards?

• Trade lines require a hard pull on your credit profile

• Secured cards are only for businesses

• Secured cards require you to put your own money down

• Trade lines are safer

Why does the narrator prefer trade lines over secured cards?

• Trade lines are more secure

• Trade lines have lower interest rates

• Trade lines are easier to get

• Trade lines do not require a hard pull and use other people's money