Why adding tradelines to your credit report could be right for you
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Credit scores can be frustrating. You may have had one or two late payments, and all of a sudden, your credit score plummets. You may then spend the next several months, or even years, trying to increase it to a number that puts you in a favorable lending position. Even if you’ve been doing everything right without success, there is one more thing you can try: tradelines. You may then experience the following benefits:
Loans and credit card approval
Purchasing authorized user tradelines can seem like a daunting prospect with so much new information to learn. However, if there’s a possibility that doing so could increase your chances of a loan or credit card approval, it can be worth considering.
Having an imperfect credit report can put many people off making any new credit card or loan applications. However, when you put time and effort into purchasing high-quality tradelines, it may offer much-needed confidence. Even when considering your debt levels and income, tradelines may increase your credit score to the point where lenders are happy to lend to you. You then don’t have to look at alternative lending options.
Property leases
When establishing your worthiness as a tenant, many property owners view credit scores to see whether you’re likely to pay their rent on time consistently. If you have had previous financial missteps in the past, you may find it challenging to secure a property lease, even if you’re a generally reliable person. When adding seasoned tradelines to your credit report, you may be able to increase your score to where a landlord has no qualms about letting you rent their home.
Interest rates
The lower your credit score, the higher the interest rate of any loans you receive can be. You may then spend more over your loan’s lifetime than you possibly would if your credit score was lower. Before applying for a loan, consider the value of a tradeline. If you’re able to improve your credit score in the weeks leading up to an application, you may be able to save yourself hundreds of dollars.
Car insurance
Surprisingly, many automotive insurance companies factor your credit score into the decision-making process for deciding your premiums. While the practice is banned in a few states, it’s a key consideration in most others. Rather than consider your gender, job, income history, and other personal information, they rely on your credit score to tell the story. In part, this can be due to studies that show a correlation between credit scores and claims frequency. If you can add tradelines to your credit report in the weeks leading up to purchasing auto insurance, you may be able to benefit from lower insurance premiums.
Job prospects
As much as we may struggle to believe our credit report can affect our employment chances, it can. Some prospective employers may view your credit report and payment history to determine how responsible you are. Even if you know you’re a responsible person, it helps if your credit report reflects that.
If you know your credit report is affecting your chances of securing a lease, a loan, or even a desirable interest rate, it might be time to consider the possible advantages of tradelines.
