Authorized Users: Is Piggybacking Credit Still Effective?November 1, 2022
If you’re just getting started in the world of tradelines, there is a lot to know.
When you’re shopping for tradelines, there are two major variables that you will want to consider including:
- The age of the tradeline
- The credit limit of the tradeline
While there are certainly other important variables to consider, including having a low utilization rate that is under 10%, the type of account, the perfect payment history, and the reporting date, the two above are definitely the most significant of the bunch.
The most important thing is to make sure that you are buying from a reputable tradeline company, as you’ll know you’re getting high-quality tradelines.
What Makes These Two Variables So Important?
To get you more accustomed to these two elements and why they are so important to consider when looking at tradelines, let’s discuss both of them individually.
There are only a limited number of variables in most credit score simulators. Often, they will only allow you to enter a new credit limit before generating an estimate for you.
This credit score simulator will assume that you’re opening a new credit card with the limit that you enter. What it really wants to know is your overall utilization ratio. It doesn’t take your age into account and what you might gain from having a seasoned tradeline on your account.
When it comes to utilization, most professional creditors recommend that you have below 30%. If you have a utilization ratio that is 30% or higher, it could pull down your overall credit score.
In essence, the higher the utilization ratio you have, the more of a chance that your credit score will decrease. This is even true if you are paying your accounts on time
When someone has numerous credit cards with varying utilization ratios, things can get a bit more complicated.
For example, if someone has five established credit cards, two of which have 50% utilization, one of which has a 40% utilization, and two of which have 15% utilization, the bad utilization cards can pull down the good ones.
It’s a good idea to buy tradelines with higher limits to get your overall utilization ratio down to the 20% and under point. However, to start, it’s a good idea to bring the utilization ratios of your bad credit cards down first.
Using Authorized User Tradelines To Maximize Your Credit Score
If you have a decent to good credit score, then going out and getting yourself a tradeline can be extremely beneficial for you. Even if you’re someone who has a low credit score, a tradeline can get you back into a place where you climb out of high-interest rate purgatory and acquire loans from lenders.
Here at Personal Tradelines, we help all kinds of people increase their credit scores with the use of authorized user tradelines. If you’re interested in learning more about how tradelines can help you, make sure to drop us a line.