Understanding how Tradelines works can be the difference between having Fair credit and Excellent credit. There are two basic kinds of tradelines (referred to sometimes as piggy backing):
- Parent/Spouse/Family member who adds you as a user on their credit card that has a large available credit limit and long standing good status
- A user who you don’t know who allows you to be a user on their credit through a third-party supplier (fees involved)
For those who do not know anyone who has a high credit limit that has been in good standing for some years who would be willing to add you as a user, the first tradeline option may not be available to you. Therefore, using a third-party supplier may be your only option but you need to be aware of pros and cons before getting started.
Pros
Tradelines can boost your credit score on average 80 points allowing you to qualify for a new car, additional credit cards and even personal and/or business loans. An 80 point score increase can certainly allow you to go from fair to good or even a good to excellent score. You also don’t get access to actually using the card which keeps you from overspending or not using the credit wisely. Just being a user on the card limits your liability and you have no financial obligation to pay the card.
Cons
Using a third-party supplier to be a user on a credit card is only temporary. Generally the credit will only show on your account for 60 days. You will want to make sure you have a plan in place to incorporate additional credit prior to the card being removed from your credit report. This can also lead to a decrease in your score. It will generally not drop as low as it was, however so it can still be worth it. Also, although it is not illegal to use tradelines, somc creditors see it as deceptive in nature and still will not qualify you for additional credit.
In my own personal experience, I have used a tradeline to boost my credit from good to excellent, pre-qualified for a $75,000 car loan, and was approved for over $12,600 in new credit.
Before going online to find a company that may offer tradelines, contact Degrees of Success for more information on what you should do before, during and after the purchase of the tradeline. Tradelines are not right for everyone and you may require additional credit steps first before using a tradeline. They also have third-party suppliers they trust that can get you the tradeline that works best for you. Schedule a free Consultation today.
Best Regards,
Dr. Genevieve Dobson
Degrees of Success
(813) 528-1102
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