Did you know that there is more than one tradeline?
A tradeline is an individual account that appears on your credit report and serves to improve your credit and even help you build and maintain a positive credit history and enjoy the countless benefits this can offer. That is why it is necessary to know that there is more than one commercial line, knowing this you can evaluate the one that best suits your needs.
Each account you have is a single line of credit. That’s true whether your payment is current or past due, the account is open or closed, or whether the account is in your name alone or held jointly with someone else. But all business lines have a specific function. Below you can find it:
Revolving accounts, such as credit cards or lines of credit. They are known as revolving because your available credit balance and payment due change as you make purchases and payments.
Installment loans, such as personal loans, student loans, car loans or mortgages. These are accounts where you borrow a fixed amount and pay it back on fixed terms.
Open accounts, these are paid in full when a buyer receives merchandise or something else of value. These accounts are more common for businesses than for individuals.
Commercial lines of credit vary from one category to another. For example, falling behind on mortgage or auto loan payments will likely cause more damage to your credit score than missing a credit card payment. And a commercial credit card line includes your credit limit and utilization, while a commercial auto loan line does not, simple as that.
Each tradeline includes detailed information, just like credit reports and are intended to help creditors minimize the risk of lending decisions. Therefore, each trade line includes a lot of potentially useful information and includes:
Partial account number
Loan amount or credit limit
Payment status, such as current or delinquent
Account responsibility: i.e., does the account belong to you or are you an authorized user?
Minimum monthly payment.
Recent balance, among others.