Wednesday, November 10, 2010

Does Adding Tradelines Increase Your Credit Score?


One method people use to boost their credit score (or repair credit) is adding tradelines, which is simply adding other credit accounts (usually credit cards) to your credit report to demonstrate more available credit.  If your ratio of outstanding credit to available credit is low (usually sub 20%), your credit score will not be negatively impacted.

However, when adding tradelines, you must be careful to to add multiple ones in a short period of time.  Opening up multiple credit cards and/or making a big purchase in a few months' span will greatly knock down your score.  Your credit score goes lower because you pose more risk when borrowing more money.  Fortunately, when all of these accounts are paid, your credit score usually increases to be a higher number than it was before.

59 comments:

  1. I dont even have a credit score lol.

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  2. Good advice, I'm working on my credit score and this information is very useful, thank, pal!

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  3. Nice stuff mate- I look forward to your next post.

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  4. my mom did that lol, she has like a gazilion credit cards

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  5. too bad i don't live in USA... :(

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  6. Nice info, as i'm not that much to economics, it's great to read such things.

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  7. I don't really believe in this method...

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  8. True that. I just got done reducing my tradelines. Still got one white whale to go.

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  9. i still dont understand this credit rating stuff. but i'll catch on if u keep posting :D

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  10. Hmmm, I don't know about these "Tradelines"

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  11. mmm, that's quite interesting, might be a good idea.

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  12. This credit stuff is all so confusing. Thanks for the help you provide

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  13. I only have one credit card >_>

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  14. dindt know that! good info. thx

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  15. She could repair her credit easily with those pen sucking skills.

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  16. gosh credit score is just such a confusing thing. thanks for the info!

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  17. You have great blog! And new follower! ^^

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  18. best method -> don't take a credit ;P

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  19. very useful information to know

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  20. Ah. Life without a credit card. Carefree :)

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  21. Good advice. Just gotta make sure that I use none of the opened credit lines.

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  22. Good tip to know though I hope I'll never actually have to use it.

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  23. People addicted by money are stupid

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  24. the best thing you can do for your score is to get a credit card, dont use it for anything but gas etc, and always keep a small balance on it.

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  25. Didn't know about tradelines! Thanks for explaining!

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  26. i seriously need to up my credit score!

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  27. you write some informative stuff, keep it up

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  28. Big purchases that knock down credit ratings are probably not worth it right now since its always better to retain cash flow in a recession.

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  29. sooo, i need to get a credit card? but what if i dont want to buy anything big? can a house be bought without credit? do i REALLY need to get a damn card or two?

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