A tradeline is a term used to describe credit accounts by credit reporting agencies. There is a distinct tradeline for each credit account you have, including information about your debt and the creditor. It would be best to familiarize yourself with how tradelines work so you can better understand your credit report and the aspects lenders check for when analyzing your credit.
You have a tradeline on your credit report for every installment and any revolving credit account. Installment tradelines comprise loans such as personal loans, student loans, auto loans, and mortgages. Revolving tradelines, on the other hand, include lines of credit and credit cards. A tradeline is basically used to identify your type of debt. However, it also relays information about your credit account. This information may include:
- Type of credit account
- Name and address of the lender
- Current status
- Your partial account number
- The dates your account was opened and closed (if relevant)
- Current balance
- When the account was last active
- Credit limit or original credit amount
- Payment history
- Monthly payment
This information is crucial if you want to analyze all aspects of your credit accounts collectively. The information on tradelines is given by your lenders since they report the most updated information they have regarding your accounts. However, some lenders may have different ways of entering tradeline information than others. As such, you shouldn’t freak out when you see information variations.
Importance of Tradelines
The information found in your tradelines is essential for calculating your credit score. Since your credit score indicates your level of creditworthiness, some lenders may refer to your tradelines for more information about your credit patterns as they consider your loan application. For instance, if you appear to be lagging on payments for a specific credit account, a lender may consult your tradeline to determine the duration of that account’s delinquency. Also, if your credit scores have plummeted because of an extravagant utilization rate on your credit card, a creditor can compare your credit limit to the available balance to determine if you are a credit risk. Say your credit card limit is $500; you may be able to max out your card without raising any red flags compared to if your limit was, say, $20000.
Being Removed From a Tradeline
If you are an authorized user, you can only be removed from a tradeline by the primary cardholder or yourself. Once you have been removed from a tradeline, it ceases to appear on your credit report. Such removal could negatively impact your credit scores, especially if the tradeline contained impressive information that was otherwise boosting your credit scores. On the other hand, it could benefit your credit account if you had a tainted payment history or high utilization rates.
It is essential to note that you can request the removal of a tradeline that was fraudulently added to your credit report. In such a case, removal from a tradeline would cut off an unauthorized account that may contain damaging information.
Review Your Credit Report Regularly
The fact that lenders review your credit report from time to time doesn’t mean that you should ignore it. You should check your credit report to ensure that all your tradelines contain legitimate and truthful information. Every credit holder is entitled to a free credit report from all major credit reporting agencies, including TransUnion, Equifax, and Experian, once every year. Experian also offers free credit monitoring every 30 days to members when they sign in. reviewing your credit report regularly also allows you to discover inaccuracies and fraud before they significantly damage your credit scores. Contact a credit bureau as soon as you spot any unfamiliar tradelines.
Buying New Tradelines
You can improve your credit score and develop an impressive payment history by adding a few new tradelines to your credit report. You can get new accounts from credit builder loans, store credit cards, and secured credit cards if you have bad credit or no credit at all. However, you may be tempted to buy tradelines, especially if you find it challenging to get approved or are just looking to cut corners. Some companies allow you to purchase access to tradelines that have been active for a significant number of years and with no delinquencies for a few hundred bucks.
Once an authorized user on that other person’s credit card adds you to the tradeline you just bought, the credit account will appear on your credit report for a short while, during which time it will boost your credit score. Now you can proceed to apply for credit on your own with your new and improved credit score.
Does Buying Tradelines Work?
Many credit card issuers disclose the nature of your relationship to the primary account owner to credit bureaus. You see how this could affect your credit possibilities since lenders will probably factor in that information while reviewing your credit application.
Purchasing tradelines isn’t guaranteed to work. Credit reporting agencies and lenders view this as a form of deception and may not look favorably upon your application. Also, they have devised a new scoring model that greatly limits the impact of bought tradelines on your credit scores.
If you consider purchasing tradelines as your last straw at a decent credit score, we recommend doing your due diligence. Some companies that sell tradelines may try to scam, and even if you manage to buy them successfully, their benefits are short-lived and unreliable. Instead of spending several hundred dollars on a tradeline, you can ask a friend or relative to make you an authorized user of their credit account. This still works to boost your credit score, and it doesn’t have to cost you a dime.
Having bad credit or zero credit can be resolved with the right knowledge and help from a trustworthy company. At CoastTradelines, we offer an array of such services; visit our website https://coasttradelines.com/ to learn more about tradelines and other information.
10531 4S Commons Dr #544
San Diego CA 92127