One popular way to improve a bad credit situation is the use of tradelines. Of course, using tradelines effectively means knowing how tradelines can impact your credit score overall. Many people unfortunately make mistakes when it comes to purchasing tradelines.
To help you avoid making those mistakes altogether, we will look at a few things you should keep in mind.
Not Checking Your Credit Report
Lenders make decisions for you based on your credit score, which is a high-level number that determines your creditworthiness. Of course, if you don’t have any context, knowing what has made an impact on your score can be quite difficult. When you check your credit report regularly, you gain a better understanding of what goes into it.
Your credit report will show what accounts you have open in your name, your payment history, and how much you owe on each account. It is very important that you reach out to the credit bureau if you notice an account or application on your credit report that you don’t recognize. If you don’t reach out, they can’t make the necessary changes, which could negatively impact your score.
One of the best ways to improve your credit score is by removing inaccurate items. Prior to purchasing tradelines, you should get rid of inaccurate items to see if you can get your credit score to a better place.
Not Removing Credit Freezes or Fraud Alerts
Having things like credit freezes or fraud alerts can be helpful to stop another person from opening an account in your name. If your personal information has been stolen once before, then you’ll know exactly what we’re talking about. Some people even like to keep their fraud alerts or credit freeze on as a shield against new accounts opening.
No matter what the reason is, it is important that you lift your fraud alerts or credit freezes when you purchase a tradeline. If you don’t, your tradeline may not post and you will never get to take advantage of the many tradeline benefits available to you.
To ensure that your tradelines post properly, make sure to get in touch with your credit bureau and tell them to lift your credit freeze and fraud alerts. Once your tradelines post, you can go back and re-engage these things to create a shield against identity fraud.
Not Having An Understanding Of Tradelines
Tradelines are credit report accounts. Whenever you purchase a tradeline, you get added as an authorized user to someone else’s account. While you don’t get access to go out and buy things with that person’s credit card, you do get to take advantage of their low utilization ratios, long-time history of on-time payments, and average age increase.
If you have any questions about how tradelines can impact your credit, make sure to get in touch with our team of specialists here at Boost Credit 101. We look forward to helping you reach the next steps in your financial life.