We’re glad to see you are serious about increasing your credit. If you haven’t already read Part 1 of our Top Tradeline-Buying Mistakes article, make sure to check it out here. If so, keep reading on for a few more common mistakes that we see people make when purchasing tradelines.
Putting Too High of a Value on Limit
People focus on the limits of tradelines far more than they should. They often think that tradelines with the highest limits are the best tradelines. What is far more important than the limit is the age of a tradeline.
One common, real-life scenario is when someone opens up a brand new credit card with a high limit and sees a drop in their credit due to their lack of payment history and increased risk to credit bureaus. For this person, a $1,000 limit might be far better than a $10,000 limit.
Buying inexpensive Tradelines to Test the Waters
Some people employ the ‘buy cheap” strategy to see what tradelines are all about first. This is not a good strategy at all. For starters, that person will spend more in the long run if they continue buying tradelines in the future. Secondly, purchasing a cheap tradeline might work against the desire to increase the average age of your accounts.
Most of the time, cheap tradelines do not have old age, which could end up lowering the average age of your accounts, putting you further back than where you started.
Not Getting Tradelines That Are Old Enough
One big mistake people often make is underestimating how old of a tradeline they actually need to make significant improvements to their accounts. Age is one of the most important things to consider. We can’t stress this enough. Make sure that you do not underestimate age. It can be very difficult to change the average age of your accounts with a tradeline that has no history behind it.
Thinking Tradelines Will Fix High Utilization
Tradelines are not a solution for high utilization. While they can certainly affect your utilization, you need to consider your individual credit cards as well. Make sure to take your individual utilization ratios into account on top of your overall utilization ratio. One solution that you could employ before purchasing tradelines is paying off your card to lower your ratios.
Buying Tradelines from an Unethical Company
We take ethics VERY seriously here at Personal Tradelines. That is why we’ve been one of the most trusted tradeline companies for so many years. However, the same cannot be said for everyone. You must do your research and make sure you find a company that you can trust so that you don’t waste your hard-earned money and time on tradelines that won’t do anything for you.
Buying tradelines is a wonderful way to enhance your credit, though having the knowledge to buy the ones that are right for you is priceless. If you have any further questions regarding what tradelines can do for your credit, make sure to get in contact with us.