Tradelines are additional credit lines in your credit history, which are purposefully input by you in order to boost your credit score. There are certain things you need to know and avoid in order to reach the goal of a better rating.
Be informed when buying tradelines
In order to be able to use tradelines successfully, you should be completely confident in your knowledge and understanding of what tradelines actually are. In a brief explanation, adding tradelines to your credit score means that you become an authorized user of another person’s account (almost always credit card account) who has an exceptionally good credit history.
The primary accounts’ credit history is then added to your personal credit history and your credit score is greatly improved, allowing you to attain better interest rates and financing.
Common things to look out for when buying tradelines
Once you know what tradelines are, you should make sure that you do not have any freezes or alerts on your account, as these will inhibit any new credit entries from showing on your credit history.
Next, you have to choose your tradeline wisely. While it is relatively true that a good tradeline will cost more, you should be guided by the impact such an acquisition will bring to your credit history, and not by the amount you are going to spend. Tradeline Club can advise you on the type of tradeline you need based on your situation.
Some of the important factors determining the impact a tradeline can have on your credit score are:
- The credit limit of the primary account
- The number of years it has been in existance
- It’s utilization or how much balance is on the credit account.
It is important to note that you should always base your choice on the longevity of the credit history. Imagine two trade lines priced equally, one of them with a better credit limit and the other with long standing. You should choose the one with a long history as it will do more for the improvement of your credit record.
This ties in with calculating the average age of your account. In order to boost your record, you should know the age of the tradeline accounts you are buying as it ties in with the age of your own account. A longer credit history is a more significant boost to your credit record. Thus seeking out the older accounts when looking for a tradeline will do you more good than choosing the one with a higher limit.
Coordinate and do the math
In order to be able to boost your credit record, you should make sure that you buy tradelines at the right moment. It takes some time for this procedure to be registered in your credit history, so if you know you are going to need an improved record in the near future it is best to start acting fast. You need to be aware of the reporting cycles and make sure that you buy the authorized user tradelines enough in advance.
Another important thing you should remember for tradelines is that you need to calculate the possible results. It is not enough to just buy a bunch of tradelines and hope for the best. You should calculate every aspect of your credit record and how buying a credit record will change the figures. Once you have done that you will have a better understanding of the kind of tradeline you need.