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How Can You Buy a Tradeline?October 25, 2022
If you’re just stepping into the world of tradelines for the first time, then you’ll want to make sure you have all the facts before you make your first tradeline purchase. Even if you already feel familiar with tradelines and the potential credit-boosting possibilities that they deliver, it’s important that you purchase the best tradelines for sale for your needs.
Two important things to consider when purchasing tradelines are: credit limits and utilization ratios.
Let’s look at how these few things factor into the tradeline buying process.
What Are Utilization Ratios and Credit Limits?
To start, let’s make sure that you understand the definition of these two things.
If you look at credit score calculators or simulators online, you’ll often see that they have a few distinct variables that they use to calculate. Before one of these calculators can give you a new credit score estimate, you’ll likely have to enter your credit limit.
It’s important to note that the reason for this is most credit score calculators and simulators assume that you’re opening a brand new credit card using the provided credit limit. These credit score calculators or simulators won’t often take the actual age into account. However, they will look at the utilization ratio.
You want to have a fairly low utilization ratio on the tradeline that you choose.
If you find a tradeline that has a utilization ratio that is 30% or higher, it could reduce your credit score. Most credit score professionals will recommend you get a tradeline with a utilization ratio that is under 20%.
The important thing to remember here is the higher the utilization ratio, the more your credit is likely to suffer. Even if a primary account holder is paying everything off on time, the same thing can be true.
The worst part is that it does not stop there.
Let’s say you have four credit cards, one of which has a 70% utilization, the second of which has a 50% utilization, and the last two of which have a 20% utilization. Even with the two utilization ratios at 20%, the high ones could pull your credit score down.
Final Thoughts – Using a High-Limit Tradeline to Pull Your Utilization Ratio Down
In theory, you could use a high-limit tradeline to pull your overall utilization ratio down, though the limit is not the most important factor to consider. Age is of equal importance and should certainly be factored into your tradeline buying decision.
Buying authorized user tradelines has a proven track record, and it has been helping individuals reach their credit goals for many years now. By working with a reputable authorized user tradeline supplier, you can potentially increase your credit score in a seamless and efficient manner.
If you’re ready to take the first step towards building better credit, then make sure to get in touch with us here at Personal Tradelines! We look forward to helping you reach your financial goals.