Whenever you use credit accounts to make purchases, the creditors will relay the information to the three credit bureaus, and it will appear in your credit reports. The credit accounts are known as tradelines since they provide you with lines of credit. You can have a single tradeline or several, and how you use them will make a significant impact on both your credit report and in boosting or lowering your credit score.
As your credit score can affect your eligibility for loans, you will need to increase it as much as possible. It can take a long while to boost it organically, so you may want to consider taking the assistance of a tradeline company. For a specific fee, they will add you as an authorized user on a credit account that has a good credit history. Since you are now an authorized user, the credit usage of this account will find its way in your credit report and will help improve your credit score.
It is a legitimate way of boosting credit as per the Equal Credit Opportunity Act of 1974, which the Federal Reserve Board’s Regulation B implements. However, many fraudulent companies float rip-off schemes, and, so, you need to make sure of a company’s legitimacy before you sign up with them.
Here are some of the factors to consider while choosing the best tradeline companies:
Is the tradeline company legitimate?
A legitimate tradeline company will have accreditation from the Better Business Bureau (BBB). You can check on this by visiting the BBB website and inputting the company’s name. Additionally, you can visit whois.net and look up the company’s profile. Along with business legitimacy, you want to work with a company that has at least ten years of experience in the field. You can find out about this in the state section of the Secretary of State website. If it has been running above-board operations, the company will appear here with the designation of a credit repair company.
Where is the tradeline company located?
Since your transactions with the best tradeline companies will be online or via phone, their location shouldn’t be an issue. However, you do need to make sure that they have a dedicated office space that you can visit if you want to. That is likely to be more legitimate than a company with only a P. O. Box address and a website. With such a company, there is a risk that it could vanish without a trace with your money.
Does the tradeline company have a website?
The tradeline company’s website must detail all its services, the accounts it offers, and its credit limits and credit pricing. Having such information will make it easier for you to make comparisons between different tradeline companies and go with the one that offers the best terms.
What kind of customer reviews does the tradeline company have?
Customer reviews can give you a reasonable idea of what the company is like to work with and what types of services you can expect from it. Ideally, you want to sign up with a company that has shown itself to be responsive to customer concerns and which can provide sound advice on selecting suitable tradelines.
What are the tradeline company’s rates?
Tradeline rates will vary by company and will depend on the age and credit limit of the tradelines on offer. Older tradelines that have higher credit limits will probably cost you more, but, at the same time, they will be more effective in increasing your credit score. While you should be on the lookout for the best available deals, apply caution if it seems too good to be true. For instance, low rates of $50 or under may very well indicate a scam.
Does the tradeline company offer a contract? When it comes to financial matters, you shouldn’t undertake anything without a solid contract. The best tradeline companies will provide ‘legal documentation that clearly states their services and prices. They will be compliant with all legal requirements, so there will be no question of fobbing you off with primary seasoned tradelines at any time. Furthermore, they will be regular about sending updated reports to the three credit bureaus.