Tradeline DefinitionA tradeline is an item on a credit report that refers to a past or present credit relationships. Tradelines include vehicle loans, credit cards, mortgages, leases, and other loans. A credit report lists separate tradelines for each account or credit card number, whether open or closed.
A seasoned tradeline is current with a history of timely payments. Some definitions state a seasoned tradeline is more than two years old. Credit Score DefinitionThe three major credit reporting agencies — Equifax, Experian and TransUnion — each report consumer credit scores. Equifax and TransUnion base their credit scores on a FICO formula. FICO is developed by Fair, Isaac & Co. Experian relies on a formula it developed and calls the PLUS Score. The three credit reporting agencies also use VantageScore, a competing score technology to FICO and PLUS Score. FICO, PLUS Score, and VantageScore are calculated using mathematical methods that incorporate credit history, amount of credit used and available, number of late and on-time payments, whether any payments due are in default, and other variables. The credit report lists specific accounts and financial history that go into the credit score. Proponents of FICO, PLUS Score, and VantageScore claim their scores are superior to the competition at predicting future consumer behavior. High number are supposed to indicate a high level of credit worthiness, whereas low scores represent a higher risk of default. FICO, PLUS Score, and VantageScore superiority claims are unsubstantiated because all three formulas are trade secrets and are impossible for third parties to test. Creditors and Credit ScoreCreditors use a person’s credit report when deciding whether to grant an applicant a line of credit or underwrite a loan. The easiest way to answer the yes or no question is to pick a number in a credit score as the threshold. Above a certain number puts the applicant in the maybe pile, and below a certain number merits a definite no. Piggybacking DefinitionAdding an authorized user to a strong account is known as piggybacking. Before 2007, authorized users got the benefit (or harm) from that account’s history. If a particular account’s history contained on-time payments and low account balances and a long history, the authorized user got the benefit of that strong history. Conversely, if an account was rife with late payments and high balances, the authorized user’s credit score was damaged. In 2007, Fair Isaac Company, the creator of the FICO score, reversed the long-standing policy of counting piggybacked accounts on an authorized user’s credit score. In 2008 Fair Isaac reversed the 2007 policy, and then in 2009 it announced another refinement when it rolled out FICO 08, the latest edition of its scoring algorithm. Buying or Renting a Seasoned TradelineA half-dozen companies and local entrepreneurs using Craigslist offer cash-rich but credit-score-poor consumers the opportunity to rent time as a authorized user on a seasoned tradeline. The cost varies, but $500 per tradeline is a common amount. The renter has no access to the seasoned tradeline account, and is not given the expiration date or three-digit security code on the account. The results, according to a 2010 Federal Reserve Board study of piggybacking are most effective for consumers who have a short credit history. Piggybacking can boost a consumer's marginal credit score into prime territory Is Piggybacking Legal or a Scam?From the consumer's perspective, piggybacking can result in the consumer qualifying for lower interest rates, which will save the consumer many thousands of dollars over the life of a mortgage or vehicle loan. Piggybacking is allowed and even expected by credit card companies between spouses and between parents and their children. If renting a seasoned tradeline keeps more money in a consumer's pocket by reducing interest costs, how is that a harm to the consumer? A consumer's lawyer will find there is no law prohibiting piggybacking between strangers. Credit card companies, in general, do not have policies prohibiting the practice. A FICO mathematician will almost certainly have a different perspective on the legitimacy question. Credit scores are meant to predict a consumer's credit worthiness, although credit scores are now sold to employers and insurance companies as tools to predict other behaviors as well. By gaming the system, the consumer boosts his or her credit score unfairly, which reduces the confidence level of the scores' predictive ability. Potential creditors want a cheap, easy, and reliable means of assessing the risk of potential borrowers. Creditors may argue that by gaming the system to allow less-creditworthy consumers access to prime loans, their eventual defaults raise the costs of loans for everyone. Creditors may be more reluctant to offer loans, or use more expensive means of determining creditworthiness. Regulators, such as the FTC, are tasked with protecting consumers. It is difficult to see how FTC regulation in this area would benefit consumers, unless the seasoned-tradeline brokers are not fulfilling their promises to rent the seasoned tradelines to customers. We keep our promises and add you to seasoned tradelines that report when they are supposed to and help you with your credit score. you can call us and we will look over your credit report and let you know what type and how many tradelines you will need to get the best for your credit report. call or visit us today to get on the better credit road office 323 776 6424 www.qualitytradelines.com
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Get The Highest Credit Scores Possible
Keep your credit card balances below 5% of the credit limit to achieve the highest credit scores possible. What this means is if you're going to apply for credit, pay your bill down before the statement end date. Doing this will give you a low debt to credit ratio, which is a major factor in credit scoring.. Have a mixture of different kinds of Credit such as Revolving, Installment, Car and Home Loans will round out your credit and show Creditors That you are Credit Worthy Add some Positive Credit that has an older age and higher limits then you have now Call or visit us today and we can look over you credit report and tell you what you need to do to raise your scores and get the things that you want 323 776 6424 WWW.Qualitytradelines.com |
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June 2019
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