Over the years, our clients have asked different questions concerning tradelines and credit repair. We took four of those questions from our forum and consolidated them here.
When people ask questions like “will X happen if I buy tradelines,” it forces us to make statements for which the Federal Trade Commission may want to punch us in the face (legally speaking), because:
So, since we can’t predict the future, especially since we haven’t see your particular credit report, I am going to preface my answer with one huge it depends.
At the end of the day, your credit score will increase if adding positive tradelines to your credit report is the only thing that changes about your credit report (ruling out new negative items, like missed payments, new collections, etc.). There’s nothing that can change that. However, you can mitigate this benefit in many ways, such as:
- missing payments on current accounts when the trade lines hit
- going into collection when the trade lines report
- getting an account thrown into charge-off status right when the tradelines appear
These negative items, among others, usually require credit repair prior to adding tradelines. So, the real question is will a particular tradeline or group of tradelines increase your score so much that the negative impact from charge-off or unsettled accounts is not economically significant?
With that rephrased question, the only answer is possible after a thorough credit report analysis of your credit report, because no charge-off collection account is the same and will have different impacts on your credit score depending on a multitude of factors. For example, how old was the collection, what was the date of last activity, was it paid off or not, was it settled for less than the full amount, etc. Depending on the answers to those questions, the collection or charge-off account will have different impacts on your credit score.
Only until you answer those questions can we determine whether trade lines will help.
You should reach out to us for full credit report analysis for a reliable answer to this question rather than a general hypothetical one. We look forward to speaking with you.
4 THOUGHTS ON “WILL TRADELINES WORK WITH CHARGED OFF AND UNSETTLED ACCOUNTS?”
A credit sweep is a combination of words designed to make you think difficult things are easier than they are. For example, do you want to fix your credit or have it fixed? One of those implies you do it one of those apply someone else does it. Do you want to go through a credit repair process or do you want your credit sweep? One of those sounds like a lot of work and time and energy and money and the other sounds like a click of a button.
A credit sweep doesn’t exist. It simply a marketing gimmick designed by someone who wants to imply credit repair is easier than it is. I should clarify that credit sweeps do not exist legally. There are people who would gain access to the ability to do rapid resource and EOSCAR transactions and will illegally delete items from your credit report. But, this is not only fraudulent but shortsighted. Suppose I can click a button and delete a collection account from your credit report. Well, that creditor is been reported next month anyway and is gonna pop right back on.
So the answer to your question is that credit sweep is nothing and you should pay no attention. If you’re looking for credit repair, the market is saturated and filled with everything from scammers to people who dedicated their life to the industry. During your search for credit repair companies, use your brain and user got. If they offer credit sweeps, do not hire them.
3 THOUGHTS ON “WHAT IS A CREDIT SWEEP?”
You might think nothing of your question, but it is music to our ears. Yes, trade lines are powerful. And yes, your credit score is going to increase the matter what. But as we explained before, any increase is not sufficient when you need a particular increase. The biggest problem we face in the trade line industry is the current credit situation of the client. Meaning, if the client’s credit report has too many negative items, we actually recommend credit repair first so that the impact of trade lines will be fully realized.
Most questions concerning trade lines can be answered with the words “it depends.” Your question absolutely falls into that category. Whether you should engage in credit repair services prior to adding trade lines depends totally on what’s in your credit report. In addition, it depends on the critical you’re trying to achieve. I know that’s very general, but that’s the best I can do without performing full credit report analysis.
You should also consider threshold matters, such as whether a negative account like a collection is large enough to be an automatic denial of a loan you seek. In those types of situations, you just have to do credit repair or debt settlement prior to adding trade lines, because even if the trade lines work in your score shoot through the roof, you’d still get denied for the loan.
2 THOUGHTS ON “SHOUDN’T I DO CREDIT REPAIR BEFORE TRADELINES?”
Not to be all esoteric, but the question “should” implies that there are other factors aside from the initial question posed. Nevertheless, I will answer your question. If you add tradelines during the pendency of a dispute at the credit bureaus, nothing changes in terms of that specific process. So can you or should you has little to do with adding authorized user trade lines to your credit report.
Here’s what’s important to know. When you dispute an item and when not dispute meets the fair credit reporting act standards, the disputed item has no effect on your credit report (during dispute). So, when you dispute an item, your scores going to shoot up. If you add trade lines during that time, your scores going to shoot up again. Suppose the disputed item is returned as a verified it once again actively reports. It’s going to bring down your score. But that has nothing to do with the fact that your score increased when you added the season trade lines.
So there could be a situation in which we do what we said in your scores increase but that your score would decrease when the disputed item reports after the credit bureaus verify its authenticity or accuracy.
With all that being said, I would suggest that you add trade lines only if you think they will put you in a position to benefit from the score increase with the assumption that the disputed item is going to come back as verified. If it comes back as deleted, you’re only in a better position. In other words, prepare for the worst.
2 THOUGHTS ON “CAN OR SHOULD YOU ADD TRADELINES DURING THE PENDENCY OF A DISPUTE?”