Understanding How Tradelines for Credit Repair Work
There will moments in your life where your credit score is not something that you can be proud of. And yet, this is not the end of the world because you can still turn your bad credit score around and make it better. Contrary to popular belief, there are actually a lot of ways to repair your credit. One such example is tradelines for credit repair. You can read more here on how to repair your credit score with season tradelines; so, make sure to click here for more.
What are these so-called tradelines and how do they work? 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. When you look at banks, you will learn that the FICO scoring model is what they rely on. 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. It is then used to define your credit history using a three-digit score between 300 and 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. Just like that, you can see an improvement in your credit score. If you want to get an idea of credit piggybacking, it is having at least 40 years of perfect payment history with $100,000 present in your credit.
Superior Tradelines work by adding your name as one of its authorized users on their low balance, high limit credit cards with perfect payment history. Even if you can use this account as an authorized user, you are not given the power to change 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 beneficial for the authorized user such as yourself because the account history of the credit card that you have used will appear on your credit report. This would appear as if the credit card history has been around since the account was created. This allows a great boost to your credit score if it is currently bad. Though you have no ability to use this credit line, you will still benefit from having the credit card record pasted into your credit report. It takes less than 60 days to get your credit score right. Click here for more information about tradelines.