3 Fun facts you may not have known about tradelines.
First of all, you should know that the tradelines on your credit report or credit history provide a wealth of information for both you and the lenders or companies offering any type of service and this is to make sure that all the information contained in your tradelines is accurate and legitimate.
Trade lines appear on your credit history.
Every move you make will be reflected on your credit history, the same goes for every revolving and installment credit account you have, there is a tradeline for it on your credit report.
Revolving tradelines include credit cards and lines of credit, while on the other hand, installment trade lines include loans, such as mortgages, auto loans, student loans and personal loans.
We have mentioned on other occasions that each tradeline includes information about every account. Some of the information it contains is:
– Name and address
– Type of account
– Current status
– Type of account
– Account opening date
– Account closing date
– Current Balance
– Payment History
All of this information allows you to view all relevant information about each of your credit accounts. The information for tradelines is provided by lenders as they report the latest information they have on their accounts.
The important use of tradeline.
The information included in your tradelines is primarily used to calculate your credit score, which is what every company is interested in. It’s worth mentioning that a credit score is just one of many ways to see your creditworthiness, lenders can also check the tradelines on your credit report for more information.
If you’re behind on payments on a particular account, for example, a lender can check the tradeline to find out how long the account has been delinquent. Or if your credit scores have declined because you have a high utilization rate on a credit card, a creditor can determine if you are actually a credit risk by checking the balance against the credit limit.
Having a merchant line removed can affect your score.
If you are an authorized user with a credit card, you or the primary cardholder may choose to remove you from the account. If this happens, the tradeline will no longer appear on your credit report.
If the tradeline had positive information that was helping to increase your credit scores and build credit, the removal could have a negative impact on your credit scores.
On the other hand, it could help your credit scores if the credit card account has a high utilization rate or problems with payment history.
You can also request that a tradeline be removed if it was created fraudulently. In this case, removing a tradeline can be a good thing for your credit because it gets rid of an unauthorized account that may have negative information attached to it.