Everything You Need to Know About Credit Tradeline and How They Impact Your Credit Score

Tradelines can improve your credit rating, ensuring that the accounts on your credit report are all in tip-top shape before creditors and lenders review it. Tradeline happens before any action is done on your credit report. Instead of mitigating the effects of a damaged credit score, tradeline companies make sure your accounts are credit-worthy.

To help you understand how credit tradelines work, here is some valuable information.

What is Tradeline?

Tradeline is the term that credit reporting firms use to refer to the credit accounts listed in a company or individual’s credit report. For every account, a separate tradeline is provided with information on the owner’s creditors and debts.

Revolving tradelines include lines of credit and credit cards. Installment tradelines, on the other hand, include the owner’s loans such as personal loans, student loans, auto loans, and mortgages. Aside from identifying the owner’s debts, tradelines also include the following:

  • Name of the lender and his address
  • Account type
  • Partial account number
  • Current status
  • Date of account opening
  • Current balance

Aside from these, the lender’s credit limit, monthly payment, payment history, and recent balance are also indicated. All these pieces of information allow you to check the details of your credit accounts. Lenders provide tradeline information as they collate the most recent info on your accounts.

Remember, however, that each lender has a different way of reporting this information, so it’s reasonable to see variations across tradelines. 

What are the Uses of Credit Tradelines?

All the essential information in your tradeline is considered to calculate your credit score. Since your credit score is merely a glimpse of your creditworthiness, lenders can also check your tradelines to get more information.

If you have unpaid payments on your accounts, lenders can check your tradeline to find why such an account is delinquent. If your score dipped because of your credit card’s high utilization rate, your creditor could check your credit limit against the account balance. This is to determine whether or not you are a real credit risk.

What Will Happen If You are Removed from the Tradeline?

If you’re the primary cardholder or an authorized user of a credit card, you may remove your name from your account. In that case, the tradeline will not be included in your credit report anymore.

If your tradeline is full of positive information that boosted your credit score, removal of the same can adversely affect your credit rating. On the other hand, if your tradeline has payment issues or high utilization rates, removing it can help improve your credit score.

If the tradeline was fraudulently created, you could request its removal. In that case, removal can be useful for your credit score since it got rid of any negative credit information attached to it.

If you have a poor credit score, you can always ask for help from reputable credit boosting firms. Likewise, if you need help fixing your tradeline, you can also work with the credit tradeline professionals. Through this, you can highly improve the credibility and creditworthiness of your accounts before they even reach the hands of lenders you want to partner with.