Repair Your Credit Score with Tradelines
There will moments in your life where your credit score is not something that you can be proud of. This does not mean, though, that there is no way to repair a bad credit score. Unlike what most people think, you have some options in boosting your credit score. One such example is tradelines for credit repair. To discover more about boosting your credit score with tradelines, read on.
What are these so-called tradelines and how do they work? Prior to understanding tradelines better, you have to know that companies such as Superior Tradelines can give you these services. These companies make use of a credit piggybacking method that helps you boost your credit score faster. For a lot of banks these days, the FICO scoring model is what they use. With the help of FICO, a mathematical equation is created that would analyze your credit history as they are kept on file by respective credit reporting agencies. Using a three-digit score, your credit history will be defined starting from 300 to 850.
Usually, banks keep your loans approved and give you better interest rates when your scores are near 850. According to FICO, 30% of your score is calculated from the ratio of your credit card balance and limit. As all of your limits and credit card balances will be combined, if the difference is bigger, your credit score is higher. Once season trade lines will be used on your credit report, your credit score will be calculated once again. Your credit score will immediately be boosted just like that. To know how credit piggybacking works, just think of having $100,000 present in your credit with 40 years making a perfect payment history.
While Superior Tradelines will establish low balance, high limit credit cards and a perfect payment history for you, they will be adding your name as an authorized user to them. As an authorized user, you will be able to use this account yet you are not allowed to make changes to it. The main purpose of an AU position is for the cardholders to add other people to their account so they can access their credit line. This is dual purpose because the account history of the credit card that you have used as an authorized user will be reflected into your credit report. You can look at this in a way where the history of the credit card has been there ever since the first opening of the account. This appearance has the power to give a good boost to your credit score. Though you have no ability to use this credit line, you will still benefit from having the credit card record pasted into your credit report. In less than two months, your credit score will increase. If you want to read more about tradelines, click here for more.