Tradeline Information
Tradelines are simple. There are only two main variables that you need to consider: age and credit limit. Of course, price and posting dates are also important, but let’s set that aside for the moment.
If you want to see good results, you have to focus on age. Age makes up 50% of the credit score because 35% is payment history and 15% is the actual age. However, it is impossible to separate the age from the payment history or the payment history from the age, so in reality, these two categories are combined to form 50% of the credit score.
The secret to using tradelines effectively is buying “seasoned” tradelines, which are tradelines that have significant age (generally at least two years). We estimate that as much as 90% of the power of a tradeline has to do with its age. However, just looking at the age of an individual tradeline alone is also not the correct way to shop for a tradeline.
The power of a tradeline will always be relative to what is already in someone’s credit report.
Therefore, the most effective way to choose a tradeline is to look at how the new tradeline will affect a person’s average age of accounts.
This is the secret key to unlocking the power of a tradeline. This factor alone is the most significant aspect of how tradelines work.
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 why someone’s credit report is important. We all know how important a credit report is. Essentially, everyone wants to have the best credit report possible.
To this end, it is wise to study how to build good credit. The basic answer is to open credit accounts of various types and make all your payments on time consistently. If you do this, over time, you should have good credit.
By optimizing the factors that go into a credit score, you could eventually even get a perfect 850 credit score.
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 your credit report when you were added. Rather, the entire history of the account is reflected in your credit report, with some exceptions depending on the bank.
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, 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 different utilization ratios at play in the secret credit score algorithm, an authorized user tradeline can play a factor in the overall utilization ratio.