When purchasing authorized user tradelines, there are many questions you need to ask yourself. Remember, an authorized user tradeline can be a major investment in your future. It is critical that you ensure you are able to get the most out of your authorized user tradelines.
While you will want to ask yourself a variety of questions when purchasing authorized user tradelines, one of the most important questions to ask is,
What is My Average Age of Accounts?
Come with us as we explore why this question is so important.
Understanding Average Age of Accounts
One of the most important factors when it comes to your credit history is something that the credit bureaus call “age.” Because age is such an important factor, it is crucial that you have an understanding of your average age of accounts. This metric could be the number one thing that is impacting your credit at this very moment.
Plus, the average age of accounts plays a major role in determining whether or not you should add tradelines to your account, and, if so, what kinds of tradelines you should consider adding to your account.
The good thing is, it is very easy to calculate your average age of accounts. Start by adding together all of the ages of your revolving accounts.
For those who are unaware, a revolving account is a credit account that allows a borrower to borrow money repeatedly up to a limit that is set by the lender. Then, the borrower will pay that money back over time. A great example of a revolving account is a credit card.
As an example, let us say that you have three accounts. The ages on those revolving credit accounts are two years, four years, and five years. If we want to calculate your average age of accounts with that information, we must add all of the account ages up and divide by the number of accounts that you have.
In this case, we would do two years + four years + five years / three accounts.
The average age of accounts would be 3.7.
The math for this kind of thing is so easy that you don’t even need a calculator!
If you aren’t sure how old your accounts are, there are many sites and platforms that allow you to look at your credit report without paying a single cent! One of our absolute favorite websites for this is Credit Karma.
Know Your Average Age of Accounts Before Purchasing Tradelines
Understanding your average age of accounts can give you better insight into what kinds of tradelines you should be buying.
If you are looking to potentially increase your credit score, we can’t recommend anything better than authorized user tradelines. You can purchase tradelines to take advantage of years of positive credit history, improving accounts that are in good standing.
In as little as two weeks, you may see improvement! Get in touch with us here at Boost Credit 101 to learn more.