What is a Tradeline?
What Is A Tradeline?
In the broadest sense, a tradeline is any account that appears on your credit report. Different types of tradelines include mortgages, auto loans, student loans, furniture loans, jewelry loans, installment loans, and of course credit cards of all types.
However, if you made it to our website you may be interested in purchasing tradelines and that is something a little more specific than this broad definition listed above. We sell authorized user tradelines which means you can pay to become an authorized user on someone else’s credit card and this account will then appear on your credit report showing your authorized user status.
Why would someone want to buy a tradeline?
Well, tradelines (in the broadest sense) are what make up the majority of a person’s credit report. It does not need to be said on why someone’s credit report is important. We all know how important a credit report is. Essentially, everyone wants the best credit report possible.
To this end, it is wise to study how to have good credit. The answer is to open new credit accounts of various types and make all your payments on time. If you do this, over time you should have good credit.
What if I currently have bad credit?
If you currently have bad credit, turning that around and building good credit is the exact same process; Open new credit accounts of various types and make all your payments on time. It may take longer to rebuild your credit than it originally took to build your credit because those negative marks will remain as part of your credit report for quite some time.
How can tradelines help?
When purchasing authorized user tradelines, when you get added to the credit card as an authorized user it does not show on a credit report when the person was added. For example, if an authorized user is added to a credit card that is 20 years old it will simply appear as a 20 year old credit card that this person has on their credit report with an authorized user status. Therefore, it appears that the credit scoring algorithms often just assume this person has been on this card for 20 years. If the tradeline has a perfect payment history that is a nice thing to have in your credit report.
Also, while there may be several utilization ratios at play in the secret credit score algorithm, an authorized user tradeline may play a factor in the overall utilization ratio.
The truth is since the credit scoring algorithms are secrets, no one knows exactly how it works. There are a lot of inferences, correlations, and guessing that has taken place to have a decent understanding of the way credit scores work.
Which tradelines should I buy?
In short, you only want to add tradelines that are superior in age and credit limit to what you currently have in your credit report. If you currently have high utilization, new higher limit tradelines may help with your overall utilization ratios. You should also know what your average age of accounts currently is and you would only want to add tradelines that may increase your average age of accounts in a meaningful way. We have a Tradeline Calculator to help you calculate these ratios quick and easy.
While we do not offer any guarantees on specific results, we do guarantee that your tradelines will report on your credit report. Since everyone’s credit report is so unique, it is up to you to use the knowledge and tools we provide so that you can determine which tradelines would be best for you.
Authorized User Tradelines VS Primary Tradelines
In an authorized user position the account will appear on someone’s credit report but authorized users do not have any financial responsibility for that account. Therefore, many people think that primary accounts are better.
A primary tradeline is an account that an individual has in their name where the creditor has extended some form of credit to that person specifically. They are financially responsible for that account and this is reflected on that person’s credit report.
The goal of someone trying to build their credit should be to open their own primary accounts and keep those accounts in good standing forever. In this way, primary accounts are the best.
However, in the industry of buying and selling tradelines, trying to purchase a primary tradeline may be full of pitfalls, scams, and other schemes that are very illegitimate and we recommend staying away from this idea in general. For one, you have to ask yourself if it passes the common sense test. How can you buy an account that is supposed to, by definition, belong to you as the primary account holder who is financial responsible for that account? Do you want to buy someone else’s debt?
If you actually get credit extended to you, in your name, then that really is a primary account. This can be a good thing, but often they will be relatively low limits and of course this new account will have no age. So is a primary account with a small limit and no age better than an authorized user tradeline with a large limit and lots of age? From what we have seen if we had to choose between these two scenarios above, we believe the authorized user tradeline with age and higher limit would be the more powerful choice.
What is a seasoned tradeline?
The word “seasoned” refers to time. A seasoned tradeline has been open for a certain period of time. Each financial institution that extends credit will define how much seasoning they are looking for but in general any account under two years would not be considered seasoned. In other words, two years is the minimum amount of time that would possibly qualify a tradeline to be considered seasoned. In short, the more seasoned the better.