What are tradelines? This is a term in the industry that describes credit accounts which comes in the following forms:
- Lines of Credit
- Mortgage and Car Loans
- Payday Advances
- Credit Cards
Some lenders consider tradelines in determining a person’s creditworthiness. Positive accounts (good history of repayment) to an individual’s credit report can help in getting credit approval.
How Fast to Add Credit Accounts
24 up to 48 hours in adding tradeline is not possible. How long then does it take to include these accounts in the credit report of a consumer? You should be a legitimate user before the indicated statement date and understand the meaning of statement dates as well as report dates. The statement dates are the time banks end billing cycles which take place every 30 days. This cutoff can be extended but this will depend on the number of days in a month. Report dates refer to the days on which credit card information is reported by lending firms and backs to credit bureaus. The information can either be good credit or bad credit.
Upsides of New Credit Accounts
You accomplish certain things by creating tradelines. It gives you the chance to maintain good credit on your report. Besides, it will add more credits to what you already own provided you are updated and responsible for making payments. The primary factors that will influence your credit score are mortgages as well as credit cards and credit amount you have at the moment. However, adding tradelines may affect your score adversely if you are not prompt enough in paying your accountabilities. In this case, avoid using the new credit account or use it sparingly to demonstrate your positive payment record.
Do you Need a New Account?
Your goal is to avoid bad credit. It is not necessary to open another account if you maintain good credit from various sources and settle your debts on time. It is a matter of quality rather than quantity. If you want to have additional tradelines, make sure not to go over the limit on your existing cards. The act of obtaining more accounts will not increase your credit score significantly.
Secured Credit Cards
It is relatively easy to secure approval for secured credit cards as tradelines. However, you must put up a security deposit equivalent to the amount or cost of the credit line. You only need to deposit the pre-arranged amount to your bank account and borrow money against that account. Many banks offer this kind of credit. The cardholder is required to pay certain charges such as annual fees with fixed interest rates. Shop around for providers so you can compare fees and interest rates carefully.
With many tradelines available, you must exercise caution in applying for credit accounts. Many lenders do not submit reports to credit bureaus unless there are problems which could be detrimental to you. Monitor your payments carefully and manage your credit lines correctly.