Trade Lines – Why Still a Viable Option?

Trade lines (or tradelines) are accounts that show up on a person’s credit reports. Each line of credit is a separate trade line on the credit reports. It contains information related to the debt and the creditor for each trade line. One example of trade line is the credit card you own. In fact, credit card as trade lines is still a viable option to increase your credit score. Here’s more on the topic.

Understanding Trade Lines

Credit cards and any line of credits you have are termed as revolving trade lines. Loans are termed as installment trade lines. All trade lines impact your credit score.

Your credit report will contain information about each of these trade lines. The information will pertain to type of account, lender’s information, current status of the account, opening and closing dates of the account, last activity, original credit limit, current balance, monthly payments, credit card balance, payment history etc.

The information about trade lines is provided by the lenders. The credit bureaus have access to this information. You can also see this information by looking at a copy of your credit report.

The information related to a person’s trade lines is used for the purpose of calculating the credit score.

If you are applying for a big loan, the lenders can also check full information about your trade lines other than taking into account your credit score.

If you are an authorized user on another person’s credit card, it will also show up as one of your trade lines.

Using Trade Lines for Increasing Credit Score

Trade lines are a viable option to improve credit. Now, you are not likely to get approved for new loans or credit cards with a low credit score. But you can still use credit cards to improve your credit. It is possible to become an authorized user on another person’s credit card and use that card’s history to improve your credit. It is a perfectly legitimate means to improve credit.

You can choose a trusted family member’s card for this purpose. But you will need to ensure that the card has the perfect payment history. The card’s good history will begin to show up on your credit reports and improve your credit score. Any time the card’s history gets bad, it will also show up on your credit reports. So, it is imperative to choose a primary account holder with stellar payment history.

Alternatively, you can choose a Miami credit repair company to buy or lease trade lines. There are reputed credit repair companies that specialize in trade lines from different issuers. You can choose one or more to help raise your credit score. You can also choose cards with longer payment histories if that is your requirement.

The advantage in choosing trade lines from companies is that you won’t need to worry about bad credit. They ensure that the credit cards’ payment history never deteriorates.

Checking Trade Lines on Credit Reports

Trade lines reveal a lot of information about your credit reports and score. You can keep check on the information to ensure that no erroneous records are present on your credit reports.

Inaccurate or outdated information on credit reports can significantly lower your credit score. False or incorrect information related to your credit card payments, loan repayments, tax liens, mortgages, foreclosures etc. can reduce your credit. By keeping tabs on the information about your trade lines on your credit reports, you can ensure that no incorrect data remains on them.

You can request free copies of your credit reports every year. So, utilize this option to be proactive about maintaining your credit. Thoroughly analyze your credit reports to find every item that is listed with inaccurate information. Do this for credit reports by all three credit bureaus.

If you encounter any inaccurate information on the credit reports, you can send a request for deletion to the credit bureaus. You will need to provide proof to support your claim. For instance, if you are sending a request to delete incorrect information about a delayed credit card payment then ensure that you send the proof of that specific payment along with the deletion request.