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The Definitive Guide to Tradelines – How to Boost Your Credit Score Fast

The Definitive Guide to Tradelines – How to Boost Your Credit Score Fast

Are you trying to boost your credit scores fast? For more than a decade, and after boosting hundreds of thousands of credit scores, we have never seen anything work faster or more dramatically than our credit tradelines. This is the definitive guide on how to boost credit scores fast using credit tradelines.

What Are Credit Scores Used For?

In recent years credit scores have become more important. Lenders have long used them to judge creditworthiness, but now landlords rely on them more heavily when screening tenants, insurance companies use them almost exclusively for determining premiums, and some employers consider them when making hiring decisions. A great credit score also opens the door to high-powered rewards cards, which offer cash back, travel benefits and 0% interest. High credit scores mean going further financially, which leaves many people wondering: How do I boost my credit score fast?

What are Tradelines?

Credit scores are built from credit tradelines. A tradeline is an account that appears on a credit report, such as credit cards, mortgages and auto loans. The FICO® score formula weighs credit tradeline management the heaviest, making the acquisition of positive tradelines the #1 method for boosting credit scores. For this reason, it is easy to see why adding authorized user credit tradelines from BoostMyScore can be so beneficial to your credit report!

How BoostMyScore adds top-tier tradelines to its customer’s credit reports

When a primary cardholder adds an authorized user onto their credit card tradeline, the bank places the entire history of that account onto the authorized user’s credit report. Family members often add each other to their accounts, such as when parents place their children on their credit cards to create a positive history. This is a highly effective strategy, but not everyone has a family member with stellar credit to help them boost their FICO™ score.

BoostMyScore makes a better way of employing this technique available to everyone. Through credit piggybacking tradelines BoostMyScore adds customers as authorized users on credit cards with long and perfect payment histories, improving your credit history in less than 60-days, guaranteed, or your money back. Authorized Users have no access to the accounts, but with their scores quickly increased, they soon receive offers for much better credit cards and qualify for lower interest rates on all types of loans than they otherwise would have had without BoostMyScore’s credit tradelines.

Why tradeline piggybacking is so effective

Credit scoring companies calculate credit scores based on these five factors:

  • Payment history 35%
  • Credit use 30%
  • Length of credit history 15%
  • Credit mix 10%
  • New credit inquiries 10%

Piggybacking with BoostMyScore can raise credit scores so dramatically because the accounts it offers are targeted to maximize score boosting potential in all five categories. Few people have access to piggybacking with accounts of the highest quality. Now, through BoostMyScore, our customers do.

How the BoostMyScore credit piggybacking strategy makes such a HUGE difference

Payment History

All BoostMyScore accounts have pristine payment history. When credit history is checkered by late payments, an account with a perfect payment history appearing in your credit report is especially effective at boosting a credit score. Much like everything else in the credit scoring model, payment history is calculated as a percentage. The higher your percentage of on-time payments, as compared to late payments, the better your score. Adding a 10-year old authorized user tradeline to your credit report is like injecting 120 on-time payments into your credit report, giving you a huge boost!

Utilization Ratio

Simply put, this is the amount of money you owe on credit cards versus the amount of available credit limit. This percentage of revolving credit used tells creditors whether an applicant might be overextended and therefore a bad credit risk for a new loan. Credit bureaus view over 30% usage negatively and under 10% as the best positive indicator. Therefore, being an authorized user on an account with a high credit limit and little to no balance increases your overall available revolving credit, thereby reducing your overall utilization ratio. This makes you a better-looking applicant to the bank.

Length of Credit History/Average Age

BoostMyScore provides credit tradelines with lengthy credit histories. The older the better, because of the variable in the credit scoring model that considers the “overall average age of accounts” in your credit report. The more age you have in your credit report, the more reliable the data becomes, making you a more predictable borrower. Adding old credit cards to your credit report has a direct and immediate impact on your credit report by improving your overall average age.

Credit Mix

By adding an authorized user tradeline from BoostMyScore, clients enhance their credit mix, especially if they have only a few, or no revolving accounts (credit cards).

BoostMyScore Tradelines are NOT New Credit

Too many credit inquiries hurt scores because credit bureaus consider them a sign of financial distress. BoostMyScore requires no credit pulls and therefore, no new credit accounts.

Some companies, like a particularly large corporate credit bureau, is now offering the ability to add your utility and phone bills to your credit report for free. While this may sound like a good option, it’s truly counterproductive. This is because those accounts are typically brand new and lack a long perfect payment history, unlike our tradelines.  Plus, our accounts nearly always report to all three credit reporting agencies, whereas this credit bureau openly admits their boosting method only reports to its own bureau. If you need a mortgage, then what good is improving only one of your three credit reports?

Accounts that do not count as tradelines

Certain accounts that appear on a credit report are not considered tradelines. These include collection accounts reported by bill collection agencies and legal judgments. Though these are not tradelines, they do detract from credit scores. Acquiring a credit tradeline with positive, long-term payment history boosts the scores of people with these black marks on their records. The points earned from the positive credit tradeline offset some or all the points lost due to negative accounts like these.

Also, scoring models include data on closed accounts. For this reason, someone with no open accounts but a long and stellar credit history can have a 700-plus credit score. However, someone with no open accounts and negative history will have a very low score.

The importance of seasoned tradelines

A tradeline must be open for at least two years for lenders to consider it seasoned. The more seasoning an account has, the more positive its impact on a credit score. For this reason, people with less than two years of credit history, such as young people just starting out have lower scores than average. Therefore, to achieve a better credit rating, adding tradelines to your credit report that have histories longer than two years is extremely beneficial.

Often, those with little or poor credit history face a chicken or the egg trap when it comes to obtaining seasoned tradelines. More credit experience is required, but they can’t get it because they lack credit history. That’s why BoostMyScore’s seasoned tradelines increase credit profiles so quickly. Through credit piggybacking, our customers get accounts with several years of seasoning, even if they have no credit history. This injection of seasoned tradelines to your credit report can have an enormous and immediate impact on your credit score.

How quickly do seasoned tradelines appear after credit piggybacking?

After an authorized user is added on a credit card, the seasoned tradeline appears on his or her credit report in as little as seven (7) days after the First Estimated Monthly Reporting date, depending on the time of the month the credit issuer reports accounts to the bureaus and the date of the Authorized User’s addition to the account.

The reporting of a credit tradeline sometimes varies by up to seven days, month to month. Also, bank holidays and other factors can cause short delays. In any case, the seasoned tradeline will appear in no more than one month.  BoostMyScore guarantees their tradelines will appear on your credit report in less than 60-days from the First Estimated Monthly Reporting Date for each card, or we will give you all your money back.

Why tradeline mix matters

Since any loan account appearing on a credit report counts as a tradeline, both revolving and installment accounts are important in establishing positive tradeline history, as well. Revolving accounts, such as credit cards and home equity lines of credit, can be drawn upon at any time the account is below the credit limit. The account owner is under no obligation to pay in full each month and has the option of making just the minimum payment, which fluctuates according to the balance.

In contrast, an installment loan provides the proceeds at the start of the loan and provides no further credit. They require the borrower to make an agreed-upon scheduled payment. Common examples include mortgages, auto loans and student loans.

Credit cards carry the heaviest weight on your credit scores because they not only show how much money you owe on the account, but also how much money you spend, as well as whether you are able to pay it in full, or not.

How to choose the best tradelines to buy

Choosing the best tradelines for credit piggybacking depends on your goals, credit situation and budget. However, when selecting tradelines, it is best to focus on the age and credit limit of the tradelines you choose to buy.

All BoostMyScore tradelines have perfect payment histories, low utilization ratios and count as revolving accounts to your credit report.

Avoid tradelines from banks where you have a prior banking relationship

In most cases, lenders make no notice of authorized user tradelines appearing in the credit report. Issues can occur when the authorized user is ineligible for an account at a particular institution. For example, if the AU has unpaid collections or a bankruptcy discharge that affected that particular organization, then they may not want to continue doing business with them. For this reason, we require every client to purchase tradelines from banking institutions for which they do not have a previous banking relationship.

Tradelines with Higher Credit Limits Can Help

A tradeline with a higher credit limit can result in offers for credit cards with similarly high limits. However, buying a tradeline with a ridiculously high credit limit costs more money and may only provide a real benefit to people seeking loans and lines of credit with high limits; typically for business purposes. It is critical to remember that credit limits are primarily determined by the bank based on the applicant’s income. For example, if you make $25,000 per year and purchase a tradeline with a $100,000 credit limit, lenders might not give you high credit limits because your income is simply too low. If you want the best chance for success, then we suggest you choose tradelines that align with your income.

Tradelines with Older Age are CRITICAL

Credit score algorithms factor several account age variables into their calculations. These include the average age of accounts, the oldest account and the ratio of seasoned and unseasoned accounts.

The age of the oldest account serves as a key variable in credit scoring models. When you purchase a tradeline from BoostMyScore, be sure to choose a tradeline that is older than all your other accounts. This will help to maximize the boost. Even after your period as authorized user ends, the scoring formulas might continue to provide credit for its age as a closed account.

Choosing an older tradeline also improves your overall average age of accounts. Increasing the average is more difficult than most people assume, so choosing a tradeline that is significantly older than your average account provides the largest boost. The more accounts you have on your credit report, the older the piggybacked tradeline needs to be.

Consider this example:

Let’s pretend this is the current list of the age of each of the tradelines in your credit report:

  • Your 1st tradeline: 1 year old
  • 2nd tradeline: 1 year old
  • 3rd tradeline: 2 years old
  • 4th tradeline: 2 years old

1+1+2+2 = 6 / 4 = 1.5 years of overall average age
Based on this example, your overall average credit age is currently 1.5 years. Considering the people with the best credit scores have an overall average age of 5 years, your credit is currently considered to be very young.

What if I choose to add a cheap tradeline with little credit history?

If we add a tradeline that is 3 years old, then the calculation goes like this:
1+1+2+2+3 = 9 / 5 = 1.8 years of overall average age

While the additional tradeline raised the age of the oldest account in your report to 3 years, it also improved the ratio of seasoned to unseasoned accounts in your report. These are both helpful factors, but are nothing compared to the importance your overall average age has on your score. In this case, the tradeline only moved your overall average age of accounts to just 1.8 years. That’s barely going to move the needle on your credit score.

What if I choose an older tradeline with lots of credit history?

Let’s try a more aggressive tradeline with an 11-year history.
1+1+2+2+11 = 15 / 5 = 3 years of overall average age

Firstly, by choosing an older tradeline, your overall average age doubles to 3 years. Secondly, the oldest account in your credit report is now 11 years old. Considering the overall average age of your credit report comprises 35% of your total credit score, the importance of improving this key element in your credit report is so critical. As a result, you can expect to see a rapid and dramatic boost to your credit score. Therefore, if you are looking for the biggest boost possible, then you should buy tradelines with a lengthy payment history.

How did credit piggybacking get started?

Credit piggybacking has been around since credit cards were invented. Cardholders have always wanted to add spouses, children and employees as authorized users to their tradelines, because they often share in running a household or business.

Prior to 1974 credit bureaus frequently gave authorized users no credit for their experience in using these tradelines. This was unfair to married women who were authorized users on their husband’s credit cards. They built no personal credit, even if they were the ones primarily responsible for managing the payment of these tradelines.

The Equal Credit Opportunity Act changed that in 1974. From then on, the government has required credit bureaus to give authorized users on tradelines equal credit for the account, which seems like the fair thing to do. Because of this, married women have more easily built a credit history independent of their husbands.

Tradeline Piggybacking Today

Most people prefer to wear comfy clothes around the house, right? But, what if you were going to a job interview? You’d dress up, right? That’s what piggybacking is. Dressing up your credit report with good looking tradelines.

The scoring algorithms used by credit bureaus do not distinguish between authorized users that are related to the cardholder and those who are not. As a result, credit piggybacking remains one of the most effective methods for boosting credit scores fast. Call us to find out if it’s a good fit for you, too.

How Can Tradelines Help Me?

Are you ready to qualify for that home loan? How about generous rewards cards and lower interest rates that can save you hundreds of dollars every month? If so, then you need BoostMyScore credit piggybacking to take your FICO score ® to the next level. In just one billing cycle, our credit tradelines can help you get to top tier credit scores.

Check out the credit tradelines simulator or contact a friendly and knowledgeable credit adviser at 1-800-531-1472 or go to https://www.boostmyscore.com/.

Bill Airy

About the Author:

Bill Airy is the CEO and Founder of BoostMyScore. For over 12 years he has helped American consumers get a second chance at a better financial life by helping them to improve their credit score. He regularly publishes helpful content on this Blog to educate others about Credit Scores and best practices when trying to improve them.

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BoostMyScore Team