Tradelines Explained And The Best Tradelines To Build Credit
Tradelines are entries on your credit report. We’ll explain exactly what a tradeline is, how to buy tradelines, and the best tradelines to build credit.
Tradeline defined
A tradeline is a term credit bureaus use to describe the credit accounts listed on a credit report. For each account on your report, there is a tradeline that lists information about the creditor and the debt. The information includes:
Lender’s name and address
Type of account
Partial account number
Current account status
Date account was opened
Date account was closed when applicable
Date of last activity
Current balance
Beginning loan amount or credit limit
Monthly payment amount
Recent balance (for credit cards)
Payment history
Different types of trade accounts include installment loans like mortgages, auto loans, student loans, and personal loans, and revolving loans like credit cards and HELOCs.
This information is used to calculate your credit score.
Buying tradelines
For new immigrants to the U.S. and young people, it’s important to build credit, and for those who have a poor credit history, it’s important to repair credit. The better your credit score, the easier it is to do things like rent an apartment and qualify for credit cards and loans. And the better your credit score, the lower your interest rate when you borrow money. That’s important because interest rates are the cost of borrowing money, so the lower, the better!
One way to use tradelines to build credit is to buy them. Buying a tradeline means paying to be added as an authorized user to another person’s credit card. This account will then appear as a tradeline on your credit report.
You can buy tradelines through a third-party service for a fee. The tradeline will remain on your credit report as an open account for a short period of time, and then you’ll be removed from the account.
Should you buy a tradeline to help build or repair your credit? No. Buying a tradeline costs money, and there are plenty of ways to build or repair credit for free.
How to improve your credit score
One way to boost your credit score is to become an authorized user on another person's account, but you don’t necessarily have to buy a tradeline to do so. If you have a close friend or family member willing to add you to their account, you can avoid paying for a tradeline and get the same benefit.
Another way to improve or repair credit is to increase the number of payments made on time. You can do this for free by signing up for Experian Boost. Taking out a credit card or credit builder loan will also improve your credit score.
Upwardli can help
Upwardli can help build your credit too! We can also help you find the financial information and resources you need to help you build your financial life in the U.S. Upwardli is here for you!
