You’ve probably heard so much about tradelines and even after hearing everyone’s advice, in your head you’re probably like “everyone says something different, which one is it?”. I use to ask are tradelines illegal? Can you go to jail for it? The quick answer for that question is no but it shows you’re being dishonest and can be considered fraud. Technically, tradelines in the credit industry are the accounts reporting on your report. There are two types of tradelines, you have revolving tradelines and installment tradelines. Revolving would be a credit line where a lender allows you to borrow credit, such as a credit card or a store card. An installment would be a mortgage, car loan, or a student loan, where you would pay back a certain amount of money each month. So what’s the point of people buying tradelines?
WHY DO OTHERS BUY TRADELINES?
I say others buy tradelines because they do not want to do the work! Some like to take the easy way out of things but in the long run not always does it help. People tend to buy positive tradelines to help improve their credit score when wanting a quick jump in their credit score. In my opinion, I don’t think it’s worth it. First things first, purchasing a tradeline can cost a pretty penny! People usually sell tradelines starting at thousands of dollars, sometimes they sell them per account or give you a few tradelines for the price of one. I met one man who was selling tradelines to customers for $1,800 EACH account! Whew, that’s a lot of money. When buying a tradeline, you become an authorized user on someone else account that has a positive history reporting but sometimes when buying tradelines the credit bureaus see it as being deceptive. Now here is where the deception comes in, when buying someone else tradeline you’re telling the creditors that all of someone else positive information is true about you and that’s not the case. Especially if all of your actual accounts are reporting negatively.
HOW LONG DOES IT TAKE FOR TRADELINES TO REPORT ON YOUR CREDIT REPORT?
If you were to buy a tradeline, it may take up to 90 days to report on your credit report but many banks update their reports every 45 days, so the tradeline can appear on two out of the three credit bureaus within 45 days.
I do want you to note that buying tradelines isn’t always guaranteed. Your purpose of buying tradelines is to increase your credit score… Not always is that the case. So let’s say you spend $2,500.00 on buying 2 tradelines, showing only two positive accounts and 10 negative accounts reporting. Your credit score will not increase because your negative outweighs the positive. Now if the credit bureaus notice that, they would consider you being deceptive. If you have no credit at all and you buy all tradelines, they may just consider that fraud. Why? Because that’s not your credit. You didn’t do any of the work to get that positive history.
WHEN’S A GOOD TIME TO BUY TRADELINES?
As mentioned earlier, buying new tradelines is one way to help improve your credit score when looking for a quick jump in your credit score. My suggestion would be if you’re looking into purchasing tradelines, do so when you have built somewhat of your own positive credit history. To get that 750+ credit score you’ll need discipline and patience. I always push for everyone to build their credit score on their own but if you NEED the quick jump for any reason be sure that you have no late payments reporting and all credit balances are low.. Be sure that your credit utilization rate is under 30%. Like I’ve mentioned in previous blog post, 65% of your credit score is based on your payment history and credit usage. 15% is based on the length of your tradelines and 20% is based on the kind of credit and inquiries reporting on your credit report.
I recommend tradeline researching before buying anything. 10% of your credit score is based on the kind of accounts reporting on your report. Honestly, it would be pointless to add a tradeline you already have reporting on your credit report. So, let’s say you have a four revolving accounts and two installment accounts reporting. You would want to look to add an additional installment account to your credit account,such as a mortgage loan or an additional car loan. The older the tradelines with positive history, the sooner you can see a credit increase on your score. So make sure you do your shopping before buying!!!
As I wrap this post up, I just want to say patience is a virtual and doing things on your own the honest way is always the best way!
“Having excellent credit is a choice, it’s UrChoice!”