As you probably know, a credit score is a three-digit number that could potentially be life-changing. This number, which seems small, can reflect how creditworthy of a person you are and can have a massive effect on your finances.

A great credit score may be able to do things like unlocking a lower interest rate, saving you thousands of dollars on long-term loans. However, if you have a bad credit score, it could become a hurdle that stops you from making major purchases later down the line.

Before you start thinking about taking new steps in your credit journey, it’s important to understand the difference between credit-building and credit repair.

Credit Building

Credit-Building vs. Credit Repair

Credit-building is any strategy that is used to increase your credit score. One of the main goals of building credit is to show creditors you have a history of responsible credit usage. You must keep your accounts in good standing by making on-time payments on your open credit accounts.

Credit-building is the best move if you have a bad credit score or you don’t have any kind of credit history at all. People build credit by obtaining a line of credit and paying it back in a timely manner. When you show creditors you have a positive payment history, you show them you are responsible and can make consistent payments on time. In turn, you’ll be able to open more lines of credit and build your credit even further.

Credit Repair

If you have a bad credit score, the first step you take should be credit repair.

Credit repair is generally for addressing activity or info on credit reports that is negative. Negative activity comes from a number of things from cases like identity theft to credit report errors. The process of credit repair must start by pulling a free copy of your credit report and seeing if you can find any derogatory marks on it.

You may see information on your credit report that is inaccurate. If that’s the case, you may be able to dispute any negative information.

Many people go through the process of credit repair by paying for credit repair agencies, though this can be a big waste of money if you are able to find the mistakes on your own.

Using Tradelines To Increase Your Credit Score

Of course, if you’re looking to build your credit, whether from decent credit to good credit or from no credit at all to good credit, buying trade lines for sale can be the answer.

There are several ways to explore the world of tradelines, and here at Personal Tradelines, we love helping our customers and clients make the right decisions when buying tradelines for their particular situations.

If you are ready to begin your journey to great credit, then make sure to get in contact with us here at Personal Tradelines so we can help. We look forward to working with you!