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Choosing a Tradeline

Written by Credit Diva of Dallas | Aug 16, 2018 11:00:00 AM

 

Adding seasoned authorized user tradelines to your credit report will add time to your positive credit history and increases your available credit which in turn lowers your credit utilization ratio.

What is a tradeline? A tradeline is a credit account that has a revolving balance such as a credit card account. When you need a quick boost to your credit score, adding tradelines is one method we recommend.

Age

A good tradeline is going to have a long history, the older, the better. The age of your credit history counts toward your credit score. When you add a tradeline to your credit report, you’ll want to extend the length of time that credit history shows on your report. Picking a young tradeline will not be as beneficial as an old one.

History

You should choose a tradeline that has a great history, so it doesn’t hurt you rather than help you. If you select a tradeline with a history of late payments, you’re going to damage your score. If you choose a tradeline with a perfect payment record (the only kind of tradeline you should buy), you will increase your credit score.

Credit Limit

The bigger the credit limit on the tradeline the better. High credit limits will raise the amount of available credit you have on your credit report, which makes you more attractive to lenders and the credit scoring models.

Credit Utilization

Along with a high credit limit, the tradeline you pick should have low credit utilization, with 30% being the absolute maximum. A better utilization is right at 20%. Utilization of 0% is not helpful either, an open tradeline with no activity provides no data for the scoring models to use.

An aged tradeline with a high limit, low usage, and excellent payment history will add all of those positive marks to your credit report.

Company

Not all tradelines report to the credit bureaus, so you’ll also want to verify that you are being added to an account that does report, or you will have bought a tradeline for nothing.

What you should not do, is add a tradeline that has a troubled history, because that history could be combined with your credit report as well, making credit repair harder. You’ll also want to know that the owner of the tradeline you are being added to is going to continue to have excellent creditworthy behavior. Working with a company that specializes in adding tradelines in the safest way to take advantage of the benefits of adding tradelines without the risk.

If you want to learn more about the benefits of adding seasoned authorized tradelines to your credit report, contact Credit Diva of Dallas, we can help you boost your credit score.