Paying your bills on time and living within your means can help keep your credit score high. However, if you’ve taken a few hits—or you need to build up your score fast—there are many different ways to help improve your rating. Adding positive tradelines to your credit report is an effective way to build up your credit score, but it’s important to be vigilant to avoid scams. Read on to learn more!
What Are Positive Tradelines?
Tradelines refer to the different account lines on a credit report, such as your mortgage, any personal loans, credit cards, etc. They play a key role in your credit score by painting the picture of your financial health. Tradelines include a wide variety of information, including:
- Your identity information.
- The type of account.
- When the account was opened.
- Date of most recent activity.
- Current balance on the account.
- Your payment history.
- And so much more!
Paying your balances on time and in full, as well as using your accounts regularly, will help keep your tradelines positive and your credit score high.
How to Add Positive Tradelines
Open a New Account
The most obvious method to add a new positive tradeline to your credit report would be to apply for and open a new credit card or traditional loan. However, it’s important to remember that applying for too many lines of credit in a short amount of time can actually hurt your credit score!
Credit companies also look at how often you’re using each account. If you open a new credit card, be sure to use it for a few small purchases and pay it off each month.
Apply for a Credit Builder Loan
Whether you have low or no credit, credit builder loans are a great way to build up your credit score. Most financial institutions offer them, but you can also apply through credit building companies such as Self. A credit building loan is an installment-style loan; however, the funds are held until the final payment is made. As you make monthly payments, the financial institution or service provider reports your financial responsibility to the top credit bureaus.
Once the loan has been paid in full, the money is released back to you—minus any interest and fees. Some users see a positive impact on their score as soon as the first payment has been made, while others report seeing growth after multiple payments.
Be Careful of Scam Offers
Scammers are out there! Keep in mind that if a program or offer sounds too good to be true, it probably is. Take time to properly research service providers and financial institutions to ensure that you’re always working with a reputable business.
The team at Briteside Solutions is passionate about providing people with the resources and support needed to get their finances back on track. Our services include credit monitoring, education, and identity theft protection. Visit our website to learn more, or give us a call at (888) 851-0646. We look forward to hearing from you.