Re-establishing credit using Tradelines
Bettering your Credit through Tradelines
Are you trying to repair your credit quickly? Or maybe you’re trying to buy a car with a low enough interest rate to afford the payments? Or possibly you’re ready to buy your first home, but can only afford the home if it comes with a low interest rate?
If you are doing any of the above – why not think about adding a tradeline to your existing credit? A tradeline is a line of credit with a history of on time payments and a low debt to credit ratio. Tradelines include vehicle loans, credit cards, mortgages, leases and other loans. On your credit report you’ll see each separate tradeline listed for each account or credit card number, opened or closed. The more seasoned the tradeline, the better for your credit! A seasoned tradeline means it’s current with a history of timely payments and typically is more than two years old.
As you can imagine, the number, history and status of the tradelines comprise a large part of your credit score. The higher your credit score, the greater the chance you’ll have in obtaining more favorable interest rates on automobile loans, home mortgages, etc…
So, now that you know what a tradeline is – let’s talk about how purchasing a seasoned tradeline can better your credit score and in turn accomplish your credit goal! As long as you can meet certain criteria, you can purchase a seasoned tradeline and be added as a secondary authorized user. This practice is known as “piggybacking.” By becoming a secondary authorized user on the tradeline, you can boost your credit score by essentially inheriting the history and “seasoning” of the tradeline without the negative impact of credit inquiries and the lengthy seasoning time.
The positive history of the tradeline helps increase your credit score by reflecting both the credit history of the primary holder to the secondary authorized user as well. The positive payment history of the seasoned tradeline also decreases your debt to credit ratio and increases your average age of accounts!