Purchasing a Tradeline

Purchasing a tradeline can seem intimidating. There are several to choose from, many data points and a seemingly endless menu of options. The reality is it’s simple to narrow your search and begin finding the right tradeline for your current situation.

If you are new to tradelines; a tradeline is when your name is added as an authorized user to a well-established line of credit. The key is to purchase a seasoned tradeline – one that’s at least two years old with a clean payment history, meaning no late payments.

When it comes time to purchase the tradeline, there are many items to consider and review before making your final purchase. After all, this is your credit score and each score has a different background.

Age of Tradeline

 First item to consider is the life of the line of credit you are looking for. You can find lines of credit that are as young as six months, all the way up to several decades in age. The longer the line of credit has been open and perfect, the greater impact it will likely have on your credit score. Again, as noted previously, the key is to get a “seasoned” tradeline, meaning it’s at least two years old with consistent on time payments.

The impact an older line of credit has is based on the fact the credit holder has maintained their credit card over a longer period of time, indicating a responsible borrower. Also, the older a line of credit, the lower the risk of spending over the limit or missing a payment.

Size of Credit Limit

 Secondly, you’ll want to consider the size of the credit limit when selecting the right tradeline to boost your credit. A higher credit limit and lower balance, will lead to a lower credit utilization percentage. This indicates you can handle debt responsibly and it will positively impacting your credit score.

If you have little to no credit on your own, you could benefit from a smaller tradeline because you’ll have less debt on your credit report.

Cost of Your Tradeline

 Lastly, the purchasing of a tradeline will vary in cost depending on factors discussed above. For example, if you are searching for a line of credit that’s been established for several decades and has a high credit limit, you’ll likely pay a higher premium for that tradeline. Conversely, if you are interested in a younger line of credit and a lower credit limit, the premium will likely be less.

Buying a tradeline can seem intimidating at first, but once you take the time to extract the important details, you’ll find selecting the appropriate product simple. Keep in mind, if you have larger amounts of debt you may want to consider a higher limit and more established line of credit. If you’re newer in the credit world and have smaller amounts of debt, a newer and smaller line of credit will work effectively as well.