There is a common misconception that the following represents the best tradelines to increase your credit score:
- The most in quantity.
- The largest limits available.
- The oldest age possible
- The cheapest prices around.
This couldn’t be farther from the truth.
In fact, we’ve never found this to be true in the last 9 years. If that rang true to you, this blog post is a must-read. It can save you from a lot of wasted time and wasted money (and from having to dig yourself out of the hole dug by wasting time and money). The quick answer is this:
The best tradelines to increase your credit score are those tradelines that counter the issues in your credit report.
More tradelines does not always mean more points.
Companies offer “tradeline packages.” So do we. However, more does not equal better. I repeat, more does not equal better. In fact, too many authorized user tradelines can trigger an event called “authorized user abuse” and actually prevent the tradelines from having any impact on your credit score.
Unfortunately, we see this ever so often:
- We have a client.
- We explain that we won’t add more than 3 tradelines and, more importantly, we explain why.
- Nevertheless, we get their updated reports and they have 5 or 7 tradelines on their report.
This means they purchased from someone else (despite our advice) in addition to purchasing from us. Almost certainly, a lender will disregard all of their tradelines.
Although we have found 3 to be the “authorized user abuse” limit, you may not need three either. If we make money selling tradelines and we’re telling you to buy less of them… think about that, for a second! You only need the tradelines you need. Not more. This is determined on a case by case basis. So, you should have this question ready to go the next time you talk to a tradeline salesperson.
Higher limit does not always mean higher credit score.
Not only is that title true, but too high of a limit on a tradeline added to your credit report can actually lower your credit score, under certain circumstances. Generally, yes, the higher limit means someone “earned” those limits with good repayment behavior and, therefore, deserves a higher credit score. But, it’s more complicated than that.
“FICO” (among other score modelers) is known to treat people of different ages differently. So, placing yourself on a limit that’s too large could put you in a different “scorecard” and result in the recalculation of your entire credit report.
This gets really complicated, but here’s the easy part:
We can help you determine what that means for your specific credit situation.
The same thing applies to “age” (or “history”).
For the same exact reasons, putting a tradeline with too much history is also problematic. This means buying a tradeline that’s really, really old under the mistaken belief that older is better. It’s not.
The most common mistake here is backdating your age. For example, a 24-year-old adding him or herself onto a tradelines that’s 25 years old (i.e., when he was negative 1 years-old.). Typically, you don’t want to backdate your 18th birthday. So, in the case of the 24-year-old, a 5-year-old tradeline is the max age you’d want to add. Now, you can add multiple 5-year-old tradelines to increase your average age of accounts, but you don’t want to backdate your 18th birthday.
The cheapest tradeline, the better? Absolutely not.
Of course someone selling your tradelines is going to say that, right? Yes. Nevertheless, it’s true. The cost of tradelines is determined by the humans interacting to get you listed as an authorized user. The product of tradelines is technically free. It’s the human labor involved that results in costs.
If someone is reducing their costs, they are most certainly reducing labor.
If they are reducing labor, that means they are cutting corners.
If they are cutting corners:
- You might not get what you “paid” for, because they aren’t actually doing anything.
- You might get flagged because they added you with a CPN and froze the lines.
- You might not get a response to questions, because they can’t afford to answer you.
- You might not be doing it legally, because they can’t afford legal advice.
The cheaper the cost, the higher the chance that you’re not going to get results.
Are expensive tradelines better? No.
The theme of this article is that the correct tradelines are correct. Expensive tradelines are just that, expensive. I could give you the wrong tradeline and charge you a lot or I could give you the wrong tradeline and charge you very little.
Get the correct tradeline. Then get the correct price. We can help you do just that.
You need to know what you need. The only way you’re really going to determine that is getting the phone with a trained expert (which you can do by calling 800-431-4741). You’re not going to figure this out on Google (even this article addressing this very topic is not sufficient).
Call us, and we’ll help!