When working on building your credit, any new term can pique your curiosity. So, what is an updated tradeline and how will it affect your credit score? Before delving into what an update is, it’s important to define a tradeline. This is just a credit account in your name or that you are authorized to use, such as a credit card or mortgage.
What Is an Updated Tradeline?
When changes occur to your credit accounts, credit monitoring companies you use may report these changes to you. For example, you may receive notifications for a change of address or a change in status of an account. Some credit monitoring companies may even detect when you close an account.
What Are Some Common Reasons for Updates?
Updates are a natural part of keeping your credit report accurate. In fact, many of the updates you receive may not affect a specific tradeline at all.
When you change employers, your new employer may be reported on your credit report. Oftentimes, it is not the change of employment itself that triggers the update. Instead, credit bureaus may pull this information from credit applications for your newest tradelines.
Installment loan accounts close automatically after you submit the last payment and the lender processes that payment. Depending on the length of this process, the official closing may take a few days or a few weeks. At this point, you may receive a notification telling you the account is closed.
When you apply for credit, the lender typically completes a hard pull of your credit. Credit monitoring companies tell you when a company pulls your credit history. Note that the name provided and the company name you are familiar with do not always match.
When a lender accepts your application, the new account will also generate a notice of an update to your credit history. Note that sometimes the start date of your actual loan and the start date on your credit history do not always line up.
Credit Limit Changes
Some credit monitoring companies tell you when your credit utilization decreases. Others may tell you the specific accounts that received a credit limit boost. Credit limit increases are natural rewards for managing a credit account well, but you quite often have to request one. Banks also often reduce credit limits for counts that go unused for some time.
If one or more of your accounts slip into delinquency, your credit monitoring company will let you know. Some credit monitoring companies track your personal finances and will even tell you your account is about to go into delinquency before the credit bureau notices. They use payment information to report this.
What Should I Do After Receiving Update Notifications?
Whether the update is specifically related to a tradeline or just an update to your credit report, you should check it. The first thing you need to confirm is whether this matches your current credit activity. Next, verify that the information is accurate. If you come across inaccurate or suspicious information, query it.
Look for Fraud
Identity theft is a common form of fraud committed in America. This may play out in a number of ways:
- Change of address may occur when someone applies for credit or employment using your information.
- Change of employer may occur when someone else seeks employment with an employer that runs credit scores or applies for credit with your information.
- New credit accounts could result from someone else using your SSN to get a loan or credit card.
- Account delinquencies might be the unfortunate indicator that someone else has been using your credit information, particularly if they did not need a hard credit pull to apply.
Companies make mistakes and these mistakes can be just as costly as fraud if you do not fix them. Not only have people lost credit opportunities and money because of credit errors, but they have also been wrongfully arrested.
Verify Financial Relationships
Did you co-sign on someone else’s loan or give someone access to your account? If these people fail to pay their bills, exceed spending limits or pass away, this could become your partial responsibility.
Research Old Accounts
As explained earlier, credit account names do not always match the company you are familiar with. This is most common with store cards because a bank underwrites the account for the company. Because of this, don’t dismiss a charge as fraudulent simply because you do not recognize the name. Double-check all the information available.
How Can I Generate Tradeline Updates That Benefit My Credit Score?
The best way to generate good updated tradeline information is to manage your credit accounts responsibly. When you need an extra boost, becoming an authorized user on the account of someone else with an impressive credit history can also improve your own.If finding a relative or friend to add you as an authorized user does not work out for you, consider purchasing a tradeline. Submit your application, today.