Things to Consider Before Buying Tradelines

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Tradelines are an acceptable means to improve credit score, which in turn can help you get another high-limit credit card or a loan of your choice. In case you are considering investing in third-party tradelines to perk up your credit reports, here is what you need to consider.

The current situation on your credit history

Before you dive into buying tradelines, it is important that you assess your current credit situation to truly understand how the purchase will affect your credit history. Delinquencies affect your credit score. The longer it takes for you pay, the worse things get. Also, the more the number of delinquent accounts, the poorer your credit history becomes. People with extremely bad credit histories, defaults, fraud alerts or freezes on their credit cards can expect little or no impact of tradelines on their credit scores. The best solution is to get those alerts removed and to pay up debts before you buy tradelines.

The age of the tradeline and your account

Many people believe that posting a single long-standing tradeline or buying multiple young accounts can help improve the age of the accounts on your credit score. The truth is, age, as calculated as an average and many new accounts together, won’t add up to a single old account. Also, if the average age of your accounts as well as that of the tradelines are similar, the impact may be almost nil. For instance, a person with a credit account that is 1 to 2 years old can expect a drastic improvement in his credit history by adding a tradeline of 7 years of age than someone with an account age of 6 years.

Tradeline vs. price

It is easy to assume that the pricier a tradeline it, the more powerful it. But this is not always true. For instance, a person with a good credit profile may consider an expensive tradeline to do the work for him. However, if this tradeline has very little to offer with regard to improving the current average age or lowering the utilization ratios, it is of little value to the buyer. On the flipside, gathering many cheap tradelines too isn’t a great idea as you may end up paying roughly the same amount as that of a quality, aged tradeline, in a bid to improve your overall score.

The processing times

Buying a tradeline takes time. Firstly, you need to do your bit of research to find a legitimate and trustworthy company. Next, you need to discuss goals with the company representative and find out one or more tradelines that can help meet them. Following this, there is documentation and drawing up of contracts, which need to be signed, and payments that need to be made. In the end, is the addition of tradeline(s) to your account. This again depends on the credit partner to add you as an authorized user, following which the credit card company updates their records internally, and passes on the update to credit bureaus, who publish the report. All of these take time, and hence when buying a tradeline in order to improve your credit time, ensure that you factor in ample time in advance so that the new tradelines can effectively reflect in the reporting cycle that you want it to.

Other possible solutions

Many people believe that buying tradelines will fix the issue of high credit card utilization, something that shows up negatively on your credit report. The truth is, tradelines do affect the overall ratio of utilization, but the impact is much higher from individual cards with high utilization. For this reason, it is typically advisable to take into consideration the number of cards that you have as well the individual utilization percentages for each of them. For a more desirable positive impact, it is better that you pay down your credit card bills to keep your utilization low than rely solely on tradelines. You can also do this by increasing your credit limit while keeping the spending the same. Also, most credit scoring models consider the total mix of credit in calculating your score. Hence, it is better to have a mix of different kinds of accounts like mortgage loans, auto loans, and as well as different types of credit cards.

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