One of the most powerful ways to improve a credit report is to add tradelines. In fact, Tradebloc considers it the most efficient way to raise a credit score because of how quickly and drastically it works. To make full use of the possibilities of this tool, the meaning and nature must first be defined.
A tradeline is simply an account on a credit report. Any credit account visible, such as a car loan, mortgage loan, student loan, personal loan, etc., is a tradeline. Tradelines have two classifications; Authorized User Accounts or Primary Accounts.
An Authorized User Account is an existing credit card account where an individual has been added. When a credit card has a long history of perfect payments and little or no balance, the credit score for the individual that was added will drastically increase.
A Primary Account is an account that has maintained one user from the start. Many credit repair companies seek “aged auto and mortgage primaries” for their clients, but such accounts do not exist and are the biggest tradeline scams in the industry.
Tradelines provide an immediate increase in a credit report score. It is a temporary transfer of a good current rating from an individual’s account to the credit report of another. The authorized user does not have access to the credit card, they simply benefit from the boost re-calculation. This tool is mainly intended for family members. However, people can use this tool to improve their credit score, as well as earn extra money by leasing their authorized user spot. The use of tradelines is a great way to improve a credit score because it impacts up to 80% of a total score. Tradelines contain three of the five variables used to determine a credit score; payment history, the year, and a low balance. If you have a client trying to get approved for an auto loan, house or apartment, credit card, funding to start a business, and they need credit enhancement, tradelines are the most efficient and quickest ways to raise a credit score.