What is a Tradeline?

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March 11, 2014:
It is a lot harder to link tradelines today and they are getting easier for credit agencies to detect.

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Seasoned Trade Line:

Seasoned Trade Lines have been in good standing for a length of time, such as 2 years and so are considered better than new trade lines. The dilemma for the average person looking to improve a credit score is that it could cost thousands of dollars to attain a seasoned line, and in the length of time required you could simply fix your credit and wait for some of the bad stuff to drop off.

Piggyback on Good Credit Scores

Improving your credit score with tradeline use

A tradeline is defined as a "piggyback" on a line of credit from a reputable account, without use of the physical instruments of the account. For example, a good account could extend you a line of credit in the range of several thousand dollards, but not provide you with any way to actually use it. In this way, you are shown to have available credit, and this can improve your credit score. Tradelines (at the time of this writing, check with your local attorney general!) are considered legal but also are something of a loophole so you should be cautious in how they are used. If a tradeline was used for fraudulent purposes, you could be prosecuted even if this one aspect was OK. In some states, modifying a credit score artificially, either to get loans, lower interest rates, or pass background checks, could be considered fraudulent. Adding strangers to credit lines also carries list, and agents who pay you a monthly fee for this practice may not be the most reliable people to trust with your social security number and credit score. Also, you should note that credit repair organizations are not permitted to charge up front for credit repair, so there could be a delay in getting the tradelines added or the act of asking for money to do this practice could violate laws. Several tradeline scams are out there, and the Federal Trade Commission advises consumers to be sure the company is real, look online for complaints, get a contract, and ensure that you have reliable forms of contact for the agency. If the agency is operating out of an apartment, or looks like it is in a cheap run-down office, you should be cautious.

Notes and Special Information

Special note: Note that getting a tradeline is not a guarantee that you will get loans, since your credit score is only one factor in getting money. Underwriters may look deeper into your credit history and disqualify you for having late payments, chargeoffs, and bankruptcies, so before you purchase a tradeline you should get a guarantee if your higher credit score doesn't get you loans.