Most consumers have the preconception that the more tradelines they have, the better their score will be. In a way, that is true, though there are definitely a few limits you must be aware of. Many of our clients ask us about the number of tradelines they need to optimize their credit score, which is exactly why we wanted to draft up an article to answer your burning question.
So is it possible to add too many tradelines?
The answer is yes.
When you introduce your credit score to positive tradelines, your credit score will increase. That is essentially how it works. You might add two and see your credit score increase, so why not add another? After three, you figure, “Hey, im on a good path here, let me keep going.”
This is where problems begin to occur.
Two main things arise from a person purchasing too many tradelines:
Don’t Burn Through Money
The more tradelines you purchase, the more you will experience what we like to call diminishing returns. This is because the increased score with every tradeline will decrease the more that you add. Eventually, you will maximize your overall benefit from tradelines. In our experience, this typically happens after three tradelines, though it can happen sooner too. It truly depends on your credit report and the circumstances that you’re in.
As a rule of thumb, we recommend staying away from purchasing four or more tradelines at any given time. You’ll spend a ton of money without getting anything in return.
Authorized User Abuse
For the most part, banks will use underwriting to allow tradelines for authorized users. Unfortunately, they have worked these underwriting guidelines so that they technically do not have to consider authorized users that are non-spousal. While banks must consider authorized user tradelines under spousal law, they only choose to allow tradelines that are non-spousal too.
The thing is, they make a restriction for these tradelines using underwriting guidelines. These guidelines allow them to consider authorized user tradelines based on the creditworthiness of the borrower in question.
How To Do Tradelines The Right Way
If you want to get your tradelines securely, make sure to get in contact with us here at Personal Tradelines. We can recommend the best tradelines for your situation and get you on the right path to purchasing them efficiently and effectively.