How Can You Add Tradelines to Your Credit Report?
Tradelines are the different entries on your credit account and can be in the form of a line of credit, mortgages, car loans, and other such credit activities. They play a major role in determining your credit score and creditworthiness to lenders. Adding tradelines such as new credit accounts, secured credit cards, and authorized user tradelines instantly shows a good credit history and a higher FICO score, showing lending institutions that you are a responsible borrower with a track record of making your credit payments timely.
Here are the different ways you can add tradelines to your credit file:
Create a New Credit Account.
Creating a new credit account directly opens a new line of credit. It allows you to start a positive record on your credit file. You need your Social Security Number to open a new credit line but if you are worried about identity theft or information misuse, you can use CPN numbers instead. Do not apply for too many credit cards at once as rejections negatively affect your chances of being accepted by another financial institution. One way to ensure that your application for a new credit card is accepted is to get your application pre-approved. Pre-approval will tell you where you lack and how you can improve to have a successful application.
Get a Secured Credit Card.
A Secured Credit Card is an easy credit line to get approved for. Most people can pass the eligibility criteria to get an SCC. You have to pay a cash deposit upfront, equal to your credit line. This deposit acts as collateral on your account and, thus, gives security to the card issuer. If you are a subprime borrower, have a thin credit file, or possess a poor credit history, you can improve your credit score with a Secured Credit Card.
Apply for a Merchant or Department Store Credit Card.
If you do not want to use your SSN or CPN numbers, one easy way to add a tradeline to your report is applying for a merchant credit card. Some of these creditors have lenient qualification processes so you can get one easily. You also get special deals and discounts when you use credit cards issued by department stores and merchants. Gas stations, jewelry stores, and furniture retailers have some of the best credit card options available.
Apply for a Line of Credit.
If you apply for a line of credit that you don’t already have, it shows creditors that you are capable enough of handling different types of credit. To get approved for a line of credit easily, ask a relative or friend to be a co-signer. A co-signer is someone who is willing to pay back the credit if you can not.
Add Pre-Existing Credit Accounts to Your Report.
Authorized user tradelines are among the best and easiest ways to add tradelines and improve your credit score. Adding yourself as an authorized user on another person’s credit account with a good track record is another easy and low-risk way to add tradelines to your report. You will be able to benefit from another person’s positive payment history. However, you must note that after you add another person to your credit report, their credit card limit will be included in your debt ratio, which will be affected by the other person’s usage of the credit card.
Report to Credit Bureaus.
Usually, creditors report your credit information to different credit bureaus. However, not all of them do that. You should check your credit report from any of the three bureaus and request any missing information or payment history to be added. This shows your positive track record, improves your credit history, and presents you as a responsible borrower to lending institutions.
Take Out a Personal Loan.
Taking out a personal loan does not affect your credit history much; instead, you can use it to improve your score just like authorized user tradelines. You can use a personal loan with low-interest rates to pay off the pending amount on your credit card bill. This will result in a huge jump in your credit score and clear red spots on your ledger. You can repay the personal loan gradually over time, but ensure that you make all your monthly payments repayments timely.
Add your Utility Payments and Rent to your Credit Report.
There are several credit-related companies that analyze your checking account, identity your regular monthly payments, and report them to American credit bureaus. You can also ask utility providers to report your payments to the bureaus. It is a free and easy way to improve your score. Similarly, you can add your rent payment to your report. While rent does not affect your FICO score, it certainly impacts your Vantage score.
Adding tradelines is beneficial if you have a thin credit file, as financial institutions see you as an “unscorable” borrower. If you are looking for ways to easily add tradelines to your credit report, contact Authorized User Tradelines! We have years of experience helping clients improve their credit score and achieve their financial goals.
The better your credit report, the less risk you pose to financial institutions as a borrower and the more willing they are to lend to you!