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. Contrary to popular belief, there are actually a lot of ways to repair your credit. Tradelines for credit repair are one example. 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. How these companies work is that they do credit piggybacking so that your credit score will go up. The FICO scoring model has become the basis for banks these days. 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.
As a loan applicant, when your credit score is closer to 850, you will have better loan approval and interest rates. 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. With credit piggybacking, actually, your score can go up just like that with having an available credit of $100,000 and 40 years of having a perfect payment history.
If you seek the help of Superior Tradelines, your name will be included as an authorized user with perfect payment history and having a low balance and high limit credit cards. 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 allows a great boost to your credit score if it is currently bad. Even if you have no power over the credit line, you can have this credit card copied into 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.