Tradeline Myths Debunked

Most people enjoy the finer things in life and want more of them. Some are able to afford things and some just can’t. Usually consumers need credit to make big purchases like cars, homes, vacations, etc. The more responsible you are with your money, the better credit you have, and therefore the larger credit limits and lower interest rates. When you have bad credit it is hard to catch a break. 

One thing you can do to improve your credit score is buying tradelines. It is an involved system but it basically is when you purchase someone else’s good credit history. A tradeline is a line item or credit account that is reflected on a credit report. If you are added to someone’s tradeline as an authorized user then this will in turn show up on your credit report. By showing up on your credit report, it helps your score. This legal method of improving your credit has some myths associated with it which we would like to explore.

There are many people who may try to deter you from this form of improving your credit by using some of the myths below. We are here to bring you the facts.

Buying tradelines is NOT illegal. 

Some may say that buying tradelines is illegal, but it isn’t. FICO did try to ban it and therefore make it illegal in 2008 but were unsuccessful. The reason they were not successful is that they found it violated the Equal Credit Opportunity Act. This particular law was created to protect consumers from credit discrimination. 

Tradelines from Early Years do help

No matter what age you were at a tradeline, it is best to include on your credit report. Adding credit history is a positive for your credit no matter what age. Those that say only purchase a valid tradeline after you turned 18 are incorrect as a tradeline has the same result as if you were prior to 18 as it does after you were 18.

Tradelines are not a short term fix

It is a fact that tradelines can only show an open account for two reporting cycles. It will be shown as a closed account after, however, it is still added to your credit history and will therefore boost your score. 

Tradelines are affordable

Tradelines can be found for a range of prices to meet everyone’s needs. From the wealthy to the financially challenged.

Authorized user accounts have more pull

The ultimate goal for a person’s credit is establish a tradeline and new account of your own. This isn’t always possible. It is also not always true that a new form of credit is more effective in helping your score. Sometimes the history and higher credit limit could help boost your credit score more than a newer (less history) and lower credit limit.

Hopefully by debunking common myths about the tradeline industry can help you evaluate if this method is right and effective for you. It is best to always get an opinion from an industry professional as well.  One recommendation for quality service is coast tradelines.

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