We are asked often, what is a tradeline? What is a tradeline for? A tradeline is a record of activity for credit which is extended to a borrower and reported to a credit reporting agency. A tradeline is established on a borrower’s credit report when a borrower is approved for credit.
The trade line records all of the activity associated with an account. If you have a cable bill, mortgage, loan or credit cards, you already have a trade line.
Comprehensively, trade lines are used by credit reporting agencies to calculate a borrower’s credit score.
Different credit reporting agencies give differing weights to the activities of trade lines when establishing a credit score for borrowers.
- A trade line is created on a borrower’s credit report to keep track of all the activity on the account.
- Tradelines include information on the creditor, the lender, and the type of credit given.
- A closed credit account will generally remain on a trade line for seven years.
- Trade line limits already issued will be considered when applying for credit.
- Age of trade line affect overall credit worthiness & age of oldest account.
Late payments are usually grouped in a range of days according to how late they are. The later the payment and the more recent the late payment , the greater the negative effect.
Some payments get “charged off” if the creditor feels that the debt will not be repaid or if they have not not received a payment for 80 days or longer.
Seeing that trade lines are used by credit reporting agencies to formulate your credit score, credit scores vary. Higher scores are given to individuals with better trade line reporting history. Things considered when calculating your credit scores include: the types of trade lines, the amount of trade lines, lengths of open accounts, available credit on the trade line and your trade line payment history. That’s why it’s important to add tradelines to your credit report. It not only helps with credit limit approval, it helps by having less requirements to qualify as It helps raise credit scores fast.
In addition to reviewing your credit score, lenders who pulls data from a credit reporting agency may also comprehensively analyze all of the trade line reporting on a credit report when considering you or your clients credit application in the underwriting process. It is important to let a credit score professional assist you with picking your trade lines.
Using our many years of experience and knowledge we can help you pick the trade lines that you need to accomplish your goals.
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