Understanding How Tradelines for Credit Repair Work
Having a bad credit score is becoming more and more common for people across the world. 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. You can read more here on how to repair your credit score with season tradelines; so, make sure to click here for more.
How does tradelines work and why are they able to help repair your credit? Before knowing more about tradelines, you have to know that there are actually a lot of companies that offer these services such as Superior Tradelines. These companies make use of a credit piggybacking method that helps you boost your credit score faster. When you look at banks, you will learn that the FICO scoring model is what they rely on. Basically, FICO has come up with a mathematical equation to help analyze your credit history that is stored on file from credit reporting agencies. Using a three-digit score, your credit history will be defined starting from 300 to 850.
Most of the time, banks will give you better interest rates and approve your loans if your score falls closer to 850. In accordance with FICO, 30% of your score will be calculated based on your credit card balances and limits. When the difference between your combined limits and credit card balances is bigger, you will get a higher credit score. When there is the appearance of season trade lines on your credit report, there will immediately be a recalculation of your credit score. Just like that, you can see an improvement in your credit score. To know how credit piggybacking works, just think of having $100,000 present in your credit with 40 years making a perfect payment history.
Superior Tradelines work by adding your name as one of its authorized users on their low balance, high limit credit cards with perfect payment history. Even if you can use this account as an authorized user, you are not given the power to change it. The main purpose of having this AU position was to add other people to the accounts of the cardholder so they can enjoy 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. Despite the fact that you do not get the ability to take advantage of the credit line, you benefit in a way that the credit card will appear in your own credit report. It takes less than 60 days to get your credit score right. If you want to read more about tradelines, click here for more.
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