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Larger limits are not always better.

Many individuals who research authorized user tradelines want to buy the biggest tradeline possible. This comes from the belief that large tradelines will result in the maximum increase of their credit score.

Analysis 6 looked at the average change in credit score based on the tradeline’s limit to analyze this mentality’s truth.

There were 8 categories of the size of the tradelines:

  • $0 to $6,000;
  • $6,001-$9,999;
  • $10,000-$14,999;
  • $15,000-$19,999;
  • $20,000-$24,999;
  • $25,000-$29,999;
  • $30,000-$34,999;
  • $35,000+.

Because many factors influence the change in credit score, it can be tricky to isolate one feature. Only clients who ordered one tradeline were included in this portion of the study to account for this. This ensured that there was no need to account for the limits of multiple tradelines. 512 of the participants were included in this analysis.

Analysis 6 findings.

It was found that the addition of tradelines with limits up to $35000+ had the highest average credit score. The credit score boost for this category was 91 points. This limit group was followed closely by tradelines with limits from $10,000-$14,999 with an average increase of 85-point increase. The next highest was $15,000-$19,000 with an increase of 79 points. All other categories had roughly the same impact, resulting in a median increase of 60 points.

The addition of tradelines with the largest limit resulted in the most significant average change in credit score. This implies that the bigger tradelines can be better. However, the tradelines with limits of $20,000-$34,999 saw the lowest average change, which contradicts this sentiment.

These results are significant because they contradict the hypothesized outcome that a larger limit tradeline always has a more substantial contribution to the credit score than a smaller limit tradeline. This indicates that while larger limit tradelines added to someone’s credit report can have material impacts on the credit score, this is not always the case. Since many factors contribute to a credit score, it is important to fully consider all aspects of a tradeline when adding a tradeline to your reports, not just the tradeline limit.

The change to the credit score is not solely due to the limit of the line that is added. While it is an essential factor, it cannot be thoroughly analyzed independent of the tradeline’s age that is added.

change in credit score based on limit of tradeline

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