Choosing the right tradelines is essential to improving your credit score. There’s a science to it. And it’s necessary to understand all its ins and outs, especially if you want to buy tradelines that will positively impact your credit report. (Which you do because you’re reading this right now.)
When learning how to purchase a tradeline, what are the most important elements to consider? For instance, should you buy the most expensive tradeline? How much history do the tradelines you purchase really need to have? Is there anything else you need to consider?
You will find all the answers regarding purchasing a tradeline in this article.
Decide Where You Want to Buy Tradelines
To purchase tradelines, you must first decide where to get them. You want to find a credible, dependable source because buying tradelines is a financial investment that you want to see a return on (and usually fairly quickly.)
If you are a professional mortgage broker or loan officer, you are looking for ways to help your clients obtain the loans they need for a home, vehicle, or business. In addition, you want to learn how to support your clients by offering access to authorized user tradelines. So, you’re looking for a professional and supportive tradeline company to work alongside.
If you are an individual looking for a FICO score boost, you’ve likely experienced trouble getting approved for a loan because of some issues with your credit history. You want to work with a knowledgeable tradeline company that can help you get out of this credit chaos as quickly as possible.
Where should you buy tradelines? Take the time to explore the tradelines offered by a leading tradeline company. Read their reviews and learn how they operate. Please pay attention to their recommendations, and take time to learn about the right tradelines before making your final decisions.
Choose Which Tradelines to Buy
Again, there’s a science to choosing the right tradelines also, a little bit of math. But don’t let that discourage you. Instead, embrace it because it will help you select tradelines that will improve your bad credit. Isn’t that the ultimate goal?
So, what should you consider?
The two main variables that contribute to the vitality of a tradeline are:
- the age of the tradeline
- the credit limit of the tradeline
Yet, if you only look at these two variables, you may purchase tradelines that don’t ultimately give you the boost you need. Therefore, it’s also essential to consider how the tradelines you purchase will interact with your credit report & history.
You want the tradelines you choose to add to your credit file and make a positive impact on it. There are several ways this can happen. Let’s examine them now.
When shopping for tradelines through a company, you can see the name of each tradeline’s bank. This factor This factor is typically irrelevant. But, if you have an adverse history with a particular bank, you will want to avoid purchasing a tradeline associated with them. For example, if you have filed bankruptcy and the bank has banned you or sent any of your accounts to collections, it’s best to choose a tradeline from a different bank.
Your credit limits matter, especially when considering how much of your credit you utilize. When you are looking into purchasing tradelines, it will be helpful for you to find lines of credit that will bring your total utilization ratio to about 20% or less. So, looking for tradelines with higher limits is good if you need your utilization ratio to decrease.
However, if you only think about this variable, you may end up unhappy with your results because the line’s age could bring your score down if you aren’t looking at buying a seasoned tradeline.
Different Utilization Ratios
What if you have various credit cards with different ratios? In that case, you may struggle to realize your intended results. If you purchase two tradelines with 0% utilization but four other cards at 40%, 50%, 70%, and one maxed out completely, the two rented tradelines won’t make enough difference.
In this situation, your cards with greater outstanding balances will weigh down your score. Each high utilization card you already have will lower your likelihood of increasing your credit score. That’s because each one counts as a negative. Let’s go into further detail about that.
Individual Utilization Ratio vs. Overall Utilization Ratio
The individual utilization ratio is the balance of a single credit account divided by its limit. The overall utilization ratio is the total balance on all accounts divided by the total credit limit. Often, even if you increase your total credit limit, the individual accounts carrying high balances still weigh down your credit score.
It may actually be more important to focus on the total age of your credit rather than the overall credit limit and utilization. Seasoned tradelines and spotless payment history can often help boost your credit score way more than just purchasing tradelines with the highest credit limit.
This factor is arguably the most important because 35% of your credit score comes from your payment history & 15% comes from the length of your credit history.
Therefore, if you purchase seasoned tradelines with approximately 3% utilization and perfect payment histories, you will have the best chance of seeing a positive impact on your credit report.
Many credit professionals believe that the average age of accounts is the most significant variable within the age category. So, how do you calculate the average age of accounts & decide how to choose a tradeline?
Say you have four open accounts and two closed accounts:
- 1-year-old (open)
- 1-year-old (open)
- 2-years-old (open)
- 4-years-old (open)
- 6-years-old (closed)
- 7-years-old (closed)
With these six accounts, your average account age would be 3.5 years. So even if you want to purchase a seasoned tradeline to increase your average account age to 7 years, you would need to purchase a tradeline that was 30 years old to double your average account age.
When Should I Buy a Tradeline Package?
Perhaps you have heard about tradeline packages. What are the benefits of purchasing a bundle of tradelines instead of just one?
Tradeline packages are most useful in these situations:
- You have a thin credit profile and need more accounts to improve your credit score.
- If you have multiple missed or late payments, collections, or foreclosures; multiple seasoned tradelines in good standing will balance out your derogatory remarks.
- if your profile is relatively strong, adding multiple accounts can give you a better boost.
- Several extra tradelines may increase the chances of posting to all three credit bureaus.
- Tradeline packages may be more prudent in time-sensitive cases when you need your report to be impacted by a specific date.
A single, powerful authorized user tradeline may be more effective if:
- If you have a limited budget, choosing one tradeline account with significant potential is your best bet; choose the most aged account possible because age is the most critical factor.
- Perhaps you already have a thick credit file with lots of accounts; adding one very strong tradeline that will help you improve your credit is the best way to go.
- If you are in a situation where you primarily need to increase your credit limit, then a single tradeline can be the solution to help improve your limit.
- In a case where you have no credit history, a single tradeline with a significant age & limit will help a lot.
Carefully Follow the Instructions
When you find a reliable tradeline company, please pay attention to any special instructions they offer. One benefit of partnering with a company is gaining access to its expertise. It helps to not only find seasoned tradelines but also seasoned professionals to work with, too!
These are some of the most important instructions that credible tradeline companies recommend:
- Review your account with all three credit bureaus before placing a tradeline order.
- For Barclays, Chase, and Citibank: your address, name, and DOB must match your credit report info across all three bureaus.
- For all banks, your first and last name and DOB must match your credit report info across all three bureaus.
- If there are any discrepancies between credit reports, request to have them resolved before you purchase tradelines.
Once you have followed the company’s instructions for effectively preparing to purchase tradelines, it’s decision time:
- You can evaluate which factor is most important in your situation.
- Decide how many tradelines to buy.
- Follow your tradeline company’s instructions for buying tradelines from their website or platform.
Purchasing a tradeline can be a beneficial solution to improving your bad credit when working to obtain a loan. Understanding how to get the most benefit out of a tradeline purchase will make it more likely that you will be satisfied and obtain the results that you need.
Carefully consider which factors will give you the most considerable credit boost, and choose a tradeline company that offers support from seasoned tradeline professionals.