What Is A Tradeline?
A tradeline is a credit line that reports on your personal credit profile.
Based on your payment history with your creditor(s), this line will report either positively or negatively. This is what creates your credit score and helps new creditors determine if you are a good candidate to extend credit to.
Why Would I Add Tradelines To My Credit File?
- Their credit file is either thin or non-existent, or…
- Their current credit credit is over utilized
A thin file is a detriment to someone who is seeking loan or credit approvals because when banks/creditors are looking to extend credit, they are looking for files that have a “decent” or “strong” history. If your file is blank or has less than 4 good reporting credit lines, it is considered a “thin” file. When a bank receives your application, in many cases you will be denied credit, require a hefty deposit and/or receive an extremely high interest rate. This occurs because you have not proven yourself “trustworthy” enough in the eyes of creditor(s).
An over-utilized file is where a consumer has maxed out or is close to being maxed out on credit cards and/or, they have a lot of debt that is not close to being paid off. Your file is considered a high-risk and will prompt creditors to deny you access to new credit.
In both instances, you are a high-risk candidate.
Your scores are suffering and it becomes close to impossible to get approved for new credit when one of these 2 scenarios are present on your personal credit file.
Is This Legal?
Many people always ask, if adding tradelines to their credit file a legal process and the answer is “yes” when you use the proper methods to do so.
The most common tradeline options are Authorized User tradelines.
This is a method where you are “borrowing or renting” someone else’s good credit (temporarily) for about 60-90 days. They will add you to their credit card account. Their positive payment history will report to your file (usually in 2 weeks to 45 days). You will now have their history on your personal credit file. You cannot use the credit, you’re just benefiting from the history. Parents will often do this for their children when they are starting out in the credit world (if they are in a position to do so). For those who are not, we have access to over 400 positive reporting Authorized User tradelines. These files are strong and report quickly.
You cannot build a file with ONLY AU lines and expect to get funded. Banks are smart and this method worked years ago and no longer works in the funding world.
Now, while AU or Authorized User lines are common, the MOST popular lines are Primary Tradelines. Primary Tradelines report as if they are YOUR actual credit lines that YOU have been paying on. Seasoned primary lines come with history and we have lines that don’t have history but will build your file and bring down your credit utilization as well.
Seasoned Primary Lines
Our Seasoned Primary Lines are like no other. We are providing lines with a history that is 90 – 95% paid off by the company. These lines will require you to pay off the last 5-10% of the debt (making this a legal transaction). These lines report to all 3 credit bureaus and you have an option on how much of a small monthly amount you want pay to commit to for the remaining timeframe of that loan. And YES…, these are reporting as installment loans on your credit file.
You can choose from a credit limit amount of $25K – $75K.
Because you will be making small monthly payments, this makes this process legal and eliminates the guess work on…”will these lines post!” Within 2-4 weeks, you will have these lines on your personal credit file and be able to reap the rewards of a quick credit boost for future approvals.
Accessing The Inventory For Tradelines
To access the inventory for all our credit tradelines, you can do so by CLICKING HERE.
When it comes to building or rebuilding your creditworthiness, you have to work with a team that is committed to your overall financial success. Credit and Finance have been my purpose for over 20 years and my goal is to help my clients create 700 + credit scores.
Things To Remember:
- Your credit is your adult financial report card.
- Creditors see your scores before they see you.
- They don’t care about what happened in the past.
- They don’t care why you fell behind or filed for bankruptcy.
- Prior to adding tradelines, you want to make sure your credit is clean.
- Adding positive credit to a negative file is counter-productive.
- When you present yourself to creditors, you want to always put your best credit file forward!
