Can buying tradelines ruin my credit?
A tradeline is any account that appears on a person’s credit report. Credit card accounts, personal loans and mortgages are examples of a tradeline that would appear on a credit report.
Tradelines play a key role in determining each person’s credit score, as they are what make up his or her credit history.
A tradeline on a credit report is a credit account. Credit bureaus create credit reports on individuals based on these trade lines. Each tradeline includes information reported by the creditor.
Your credit score, the three-digit number that measures your creditworthiness, is calculated using the tradeline information on your credit report. If you have made your payments on time, kept your balances low and have been responsible with your credit obligations, then your tradelines will contain positive information and you will have a high credit score to show for your efforts.
Without a tradeline, you cannot have a credit score. For the credit score calculation to work, your credit report must have at least one tradeline that has been open and active in the last six months.
With that said, you can see how tradelines can affect your credit.
The number of tradelines you may have open at one time can affect your credit score.
Since having too many can make you appear overextended, and look like someone who lacks experience when it comes to credit, it can affect your credit score.
Unfortunately, credit rating companies have not disclosed the specific number of tradelines you need to have to achieve excellent credit.
To build the best credit score, the ideal is to open and close accounts only when you need to, keep your existing accounts current and keep your debt balances low.
So it is worth noting that buying tradelines does not affect your credit, what can affect your credit is having too many lines open when you don’t need them. Open tradelines with positive information will remain on your credit report indefinitely.
Closed tradelines with positive information will remain on your credit report for a period of time determined by each credit bureau’s internal reporting guidelines. Closed tradelines with negative information such as delinquencies or bankruptcies will fall off your credit report within seven to 10 years.