How long do tradelines stay on credit reports?
Thanks for the question. One quick correction, once you purchase, it will take between 15 and 45 days to report to your credit report and boost your scores. So, I wanted to correct the question slightly to: Once the tradelines report, how long do they remain on my credit report?
Tradelines can report for as long as 7 years or as short as 45 days. There are many factors that go into this; the degree of legal challenge activity at the credit bureaus, how far away you live from the card holder, the type of authorized user trade line you were added to, etc. We see an average of a few months of solid reporting. Some more prominent cards stay on an average of 24 months. But, as we've written on other posts and pages, it almost doesn't matter how long the tradelines stays on your report. Here's why:
Let's say the tradelines stays on your report for 5 years. Well, the score increase, or positive impact, you received from the tradelines would not remain for 5 years. It would slowly go away over the course of a year or so. I always explain this backwards because it makes it easier to understand. Let's say you have a collection pop up on your report tomorrow. The recent reporting of that negative item is going to severely damage your credit and your credit score. Let's call it a 150 point decrease from day one. Let's further assume you just ignore it and do nothing. They're (the collection agency) going to report again next month, the same information. Your score decrease remains at 150. Let's say a few months go by and they stop "actively" reporting it (reporting every month). So, the collection is now 3 months old. Your score decrease it probably about 120 points. Let's say 24 months go by and they haven't actively reported it. You're probably sitting on a 50 to 75 point decrease. Let's say it's 5 years old. That might represent a 25 point decrease. Please note, these are all made up numbers just to explain how stuff works.
Now, let's take that idea and reverse it. When we add a tradeline, you will see an instant increase in your credit score on day one. Since we are not "actively" reporting it (in other word, we're not going to report the same data ever month), it will age 1 month every month. It will remain on your report, it will just age as time goes by. So, let's say you got a 100 point increase on month 1, well, you might only have a 95 point increase on month 2. Then maybe a 65 point increase on month 3, a 50 point increase on month 4, a 10 point increase on month 12, etc.
So, while your question is important, the time it takes you to utilize the impact from your tradeline is MUCH more important. For example, you wouldn't want to boost your score 100 points on month 1, wait six months to find a home, another 2 months from offer to closing, etc., and then expect your score to be 100 points higher than it was. Instead, you'd want to take advantage of the boost as soon as possible. This means, have your house picked out, have your finances in order, all preparations for the mortgage application... then add the tradelines and pull the trigger. This way, you receive maximum benefit from the tradeline.
Now, I wanted you to understand all that before I gave you an answer, which we thing, is not useful to you. But, to answer your questions specifically, the answer is:
45 days to 7 years.
If you have any other questions, please let us know.
This is an excellent question that Robert has done an exceptional job answering. To summarize what he has said, you can expect to see any added tradeline appear on your file for as long as 7 years, or as short as 45 days. The greater point to concern yourself with is that the addition of tradelines to your file provides short term credit score enhancement. When considering this point you would want to make sure that if you are planning to add tradelines to your file you would do so as the last step in your process of acquiring lending. Get "all of your ducks in a row" before adding the lines so that you can capitalize on the initial (most significant) enhancement to your scores.
Hi, I actually have a follow up question to Lani's. If you are added as an authorized user on an account, why would the history not be reported on your credit report every month along with the primary? Is it because you are soon thereafter removed as an authorized user so that the tradeline may be sold to someone else? I had another company tell me that they could, for a monthly fee, have the tradeline continue to update monthly on my credit report. In your opinion, is that a legitimate claim on their part or is that not possible and I'm being misled? Thanks!
- Jane, You are very close to correct. The history of the authorized user tradeline does report every month. However, there is a difference between actively reporting and passively report, which is hard to explain, but I tried with my initial answer to Lani. If you were added as an authorized user last month and it reported this month, even if your responsibility as an authorized user were terminated, it will still report next month. But, rather than reporting again, it would simply list the tradeline as reporting in the previous cycle. In terms of scores, there would be such a small difference it wouldn't matter to even consider it. Yes, you could ask for it to report actively and there would probably need to be a fee involved because there are expenses involved in coordinating all of the resources and people involved in the process. As far is Superior Tradelines, we don't do this at all... because: Paying extra to make it report longer is simply subsidizing bad decisions. If you timed it right, you wouldn't need it to last longer. The only reason you'd need it to last longer is if you didn't time your finances correctly. So, Superior Tradelines would say "let's hold off on your tradeline purchase until you are ready" rather than saying, like other companies have said to you, "Sure, let me charge you for something you don't need because I didn't explain this to you correctly". That last part sounded sarcastic, but I wanted to make a point that this "small fee" thing is just silly from start to finish. Our position is, don't pay more than you need to. Make sure you've timed your credit and financial goals and you won't need to worry about the reporting duration. I hope that helps. Thanks, Robbie
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