Gaining good credit is a requirement to obtain a loan and credit card. The problem is an individual falls victim to incessant application denials. Obtaining good credit is a requirement to offset high interest rates and have a better chance to financially qualify for funding. The poor payment history and thin credit file keeps an individual stuck to paying more on loans and credit cards.
One of the quickest Best Way to Gain Credit to build credit is becoming a user on seasoned tradelines. If it is done correctly, the credit report is revised, and, FICO score is increased. This is a reason why user tradelines are one of the most effective ways to increase credit score, in a short period, especially considering FICO score.
Most of the credit score factors that increase score include credit cards, loans, history of payment, etc.
The three major credit bureaus, Equifax, Experian, and TransUnion, gather data from lending institutions, and in turn, credit scoring agencies use the data that the bureaus collect to calculate credit scores, and issue FICO scores. FICO scores are primarily determined by credit payment history (35%), credit utilization ratio (30%), credit age (15%), credit mix (10%), and recent credit activity (10%).
Then, payment history, credit age, and credit utilization rate (over 30%) are certain to bring a score down. Fortunately, each factor, especially payment issues, can be easily and quickly resolved.
What is a Tradeline?
An authorized user, is a person who is added to someone else’s credit card account. If the primary cardholder practices good credit behavior, then it may also be recorded on the authorized user’s credit report, even if the authorized user never uses the card.
Also, the user gains the benefits of the account’s length, the credit history, as well as the limit on the account, and the associated debt to credit ratio. This is precisely why authorized user tradelines are some of the most effective and efficient means available to quickly and inexpensively improve a credit score.
Tradelines accelerate credit score enhancement due to several reasons. Â
Tradelines immediately boost credit score due to better credit utilization. Utilization rate describes the total credit card balances divided by the total amount of credit available to the cardholder. For instance, if the cardholder is holding a $2,500 limit, and is carrying $2,000, then that is 80% utilization and such high utilization is damaging to the credit score. Tradelines boost better credit utilization ratios by adding new accounts that are high limits, so the account holder is better off credit utilization wise. Meaning, since the credit utilization is better, the score gets better.
Tradelines provide better payment history. Payment history, and the consistency of that history is the biggest single contributor to the credit score by FICO. If the tradeline has payment history that is perfect and has had on time payments that are never late, then that history is credit enhancing. The history is new, but the account becomes a positive, fresh account.
Tradelines boost credit scores by providing a better average credit age. Many newer accounts provide a better average credit age, and a single older account is more beneficial for the average credit age for the entire account. Average accounts age directly correlate with the FICO score, so average age accounts contribute better to the score.Comparing Tradelines with Other Options
Secured credit cards need a deposit. Plus, payments need to be performed consistently, before there is any noticeable improvement. As for credit limits, they’re usually low. Because of this, a cardholder could end up pushing credit card balances higher, which works against them. Credit builder loans can diversify your credit, but these loans need monthly payments, which could set you back. Personal credit loans, as well as auto loans, could hard pull your credit report, and if you’re denied… well, you have taken a hit for no improvement.
An authorized user tradeline allows you to avoid taking on debt, and if there is a potential to miss a payment… that’s not a concern either. Plus, there will not be a hard pull on your report.
Your bottom line is extended because of the strong tradeline, and not because of your activities.
Why Coast Tradelines is a Good Option Â
It is true that not all tradeline companies are the same. This is why selecting the ideal company matters the most. With Coast Tradelines, the seasoned tradelines that really do make the difference are placed into your hands, and that is due to having their credit accounts that are well established with strong payment records and big available limits.
Coast Tradelines understands what tradelines can do and what they cannot do. Unlike other credit repair companies that make unrealistic promises or guarantee removal of negative items from credit reports, Coast focuses on legitimate authorized user placements. Their goal is to strengthen your credit file with legitimate, real-time and reported account history, not gimmicks.
Along with being added to the account as an authorized user, the account reports to the credit bureaus in about 1-2 billing cycles. Depending on your credit situation, you could see an improvement in your credit file in as short as 30 days, all while avoiding the debt and high interest of new accounts.
Tradelines Work Best with Other Credit Building Activities
Although peer user tradelines are powerful, they will only be effective when combined with responsible credit behavior. Pay all of your credit accounts on time, keep your balances as low as possible, and dont apply for any new credit accounts that you do not need. Make sure to review your credit report to make sure there are no errors that are negatively affecting your score.
Tradelines are meant to accelerate the improvement of your credit score when combined with good behavior.
It’s Your Call
If you’re looking to quickly raise your credit score, becoming an authorized user on a tradeline is one of the best options available. You will improve the three most highly weighted factors of credit score calculation, which will improve your score without having to incur any more debt or wait a long time to see the benefits.
Better credit gives you more opportunities, and with a proper tradeline strategy, you will have those opportunities sooner than you think.
