What Is A Tradeline

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What is a tradeline, you ask?

A tradeline refers to a credit account that shows up on your credit report. Major credit reporting agencies prepare credit reports to help lenders determine your creditworthiness. Thus, having a positive credit report is vital in improving your credit score. There are many different types of tradelines, but one of the most popular ones is credit cards.

If you want to learn more about what a tradeline is and how it can help improve your credit score, keep reading!

What Is A Tradeline For?

The primary purpose of a tradeline is to help lenders calculate your credit score. Banks and other lending companies use the information in your tradelines to determine your creditworthiness. Lenders may also look into the tradelines in your credit report to get more information about what kind of borrower you are.

For example, if lenders see you have late payments on certain credit accounts, the lending company may check how long you have been delinquent with your payments. This may give them a negative impression of your creditworthiness. Meanwhile, if you have a positive payment history, this shows a good impact on the lenders.

What Are The Different Types of Tradelines?

There are three different types of tradelines. They are:

  • Open Accounts,
  • Installment Loans, and
  • Revolving Accounts.

Open accounts are credits that are payable in full. These are common for businesses. Installment loans refer to various types of loans like auto loans, student loans, personal loans, and mortgages. As with revolving accounts, this refers to credit cards or lines of credit. Revolving accounts are the most popular tradelines. They are also the most easily accessible among the three options.

It is essential to know that major credit bureaus include these tradelines in your credit report. They are all vital parts of your credit history. All of this information is relevant in determining credit scores.

What Is A Good Tradeline?

A good tradeline is any credit account that reports positively to your credit report. This includes credit card accounts, mortgages, auto loans, and more. Having positive tradelines on your credit report can help improve your credit score in several ways:

  1. They show lenders you are a responsible borrower who makes on-time payments.
  2. They increase your credit limit, lowering your credit utilization ratio.
  3. They add diversity to your credit mix, another factor considered in your credit score.

What Makes a Good Tradeline?

A good tradeline helps you get approved for a loan or credit card. It is essential to have a good credit score, and using a tradeline is one way to help improve your score. Several factors make a good tradeline. The major ones include:


In the tradeline industry, the longer your account has been active, the better. Of course, there has to be a lot going on in the account over the years. This enables lenders to see how good you are at paying off your debts.

Positive Payment History 

Positive payment history means you rarely or has no late payments or delinquencies at all. Your credit report should indicate that you pay all your debts on time or your minimum monthly payment requirement.

Low Credit Utilization Ratio 

The credit utilization ratio refers to your available credit. A healthy credit utilization ratio is 30% or below. Credit scoring models, also known as consumer reporting agencies, interpret this as a positive sign of your credit management skills.

Credit Limit

Credit card issuers only increase credit limits if you have good payment standing. Having a high credit limit means you are a low-risk borrower. Thus, giving your lenders a positive impression of your creditworthiness.

How Do Tradelines Work?

Credit scoring companies measure your creditworthiness based on the tradeline information in your credit report. If you have a positive payment status, which means you pay debts on time and your balances are low, your credit report will have positive information. A positive credit report translates to a high credit score. Thus, making you qualified for loans and lower interest rates.

It is essential to know that it would be impossible for credit scoring companies to determine your credit score without a tradeline. There would be no basis for calculating scores. For credit scoring models to work, have at least one tradeline.

How Does A Tradeline Affect Your Credit Score?

Tradelines affect your credit score either positively or negatively. If your credit report from a major credit bureau shows positive information because of good tradelines, the outcome will be a high credit score. Otherwise, you will have to work on improving your credit standing.

It is vital that lenders need your credit score as part of the loan approval process. As mentioned in the earlier sections, credit scoring models use tradelines to generate your credit score. Without a tradeline, it would be impossible to come up with a score, which is vital for loan processing and others.

For your reference, there are five factors affecting your credit score. You have to work on these factors to ensure a high credit score. These are:

  • Payment History (35%)
  • Debts or Amounts Owed (30%)
  • Length of Credit History (15%)
  • Credit Mix (10%)
  • New Credit (10%)

Can You Buy Tradelines?

Yes, you can buy tradelines. Anyone can buy a tradeline through a third-party service provider for a certain fee. Tradeline prices vary depending on how long they have been active and if they are in good standing. Seasoned tradeline, for example, refers to a primary credit card account that has a good standing for at least two years. This type of tradeline is one of the most expensive, especially if it has been around for many years. New accounts, meanwhile, are cheaper but are not as significant when it comes to improving your credit score.

What Is An Authorized User Tradeline?

Each primary account holder has the option of adding an authorized user tradeline. An authorized user is someone who is added to a revolving credit line by the primary account holder. The tradeline will be reflected on the user’s credit report as soon as it is added to the account. As the authorized user, you are not bound to anything. If your primary account has an existing loan, you have no obligation to repay it. Authorized tradeline users have no access to the personal or financial information of the primary account holder. They also do not enjoy the same benefits as the account owner.

About Coast Tradelines

Coastal Tradelines is a legitimate tradeline company based in the USA. We have been providing our customers with the best tradelines at very competitive prices for years. As a tradeline company, we strive to improve our client’s credit standing. We look forward to living up to this goal for years to come.

Do not hesitate to call us during business hours if you have any questions about our company or our products and services. One of our customer service representatives will be pleased to assist you. Our contact form is also available on our website.

Final Thoughts

To conclude, a tradeline is a credit line added to an existing credit file. It helps boost your credit score by increasing your available credit and showing lenders you handle debt.

If you are looking to improve your credit score, a tradeline could be the perfect solution for you. With a tradeline, you can get access to better interest rates and more opportunities for financing. You can buy seasoned tradelines from reliable tradeline companies like Coast Tradelines and achieve the credit score you need for your next loan.

Contact us at Coast Tradelines today and experience the difference buying a tradeline can make!