One of the least understood credit-related items is the “credit tradeline.”
If you’re looking to learn more about credit tradelines, then you’ve come to the right place.
Tradelines represent loans, collections, and credit accounts on credit reports. They can directly impact credit scores, which is why people use them as tools to increase their credit scores.
A tradeline is essentially an item listed on a credit report. There are two major types of tradelines that show up on a credit report:
● Installment Credit: These are close-ended accounts that you must pay back over a fixed amount of time. Installment credit can include personal loans, student loans, mortgages, auto loans, and “buy now, pay later” loans that are structured with set payments.
● Revolving Credit: These are open-ended credit accounts, including credit cards or other types of credit lines. These are continuously used and paid off when an account stays open. Timely payments must be made to keep these tradelines in good standing.
One of the first steps to improving your credit score is understanding how tradelines work.
The three major credit bureaus–Experian, Equifax, and Transunion–handle credit reports differently, meaning one bureau may have differing information from another. When you buy a tradeline, you want to make sure it is reported to every bureau (or at minimum 2 out of 3).
Tradelines can be used as a key element of your credit history. The information found in these tradelines is used to calculate credit scores. Certain information carries more weight than other information, including length of credit history and on-time payment history.
One of the best ways to build credit is with authorized user tradelines. When you become an authorized user on someone’s account that has a good credit standing and good credit history, you can potentially increase your own credit score.
The amount of time that a tradeline will stay on your credit report will depend on the lender that is associated with the particular tradeline.
However, when looking to purchase an authorized user tradeline, the most important thing is to find one that has a perfect payment history, one that has enough age to help, and one that has a relatively low balance compared to the credit limit.
One of the best ways to increase your credit score is to find a tradeline with the characteristics above.
If you’re thinking about getting authorized user tradelines to boost your credit, we couldn’t recommend it more.
Purchasing authorized user tradelines from Personal Tradelines is a good place to start. Here at Personal Tradelines, we have a MASSIVE database of quality authorized user tradelines for sale for those looking to build their credit.
If you’re interested in learning more about how tradelines can help you, make sure to drop us a line.