To be honest, tradeline is just an industrial jargon for your credit account. It just means whenever you open a credit account, it creates a tradeline. With every payment, your tradeline gets updated which reflects the boost in your credit score.
This boost in credit score helps you repair or enhance it. In simple terms, tradelines reflect your financial situation. They allows you to enhance your borrowing power with a proper maintenance.
How to Start?
In Case You Don’t Have Credit Card
To get a tradeline, the simplest way is to get a piggyback credit. It allows you to have the credit history of your sponsor and you can be a step closer towards your own credit account.
In Case You Have a Credit Card
In case, you already have a credit account with a strong credit history, you can become a tradeline affiliate. It can prove as an excellent side hustle that lets you make a strong passive income.
How to Become a Tradeline Affiliate?
The first thing you shoul have to become a tradeline affiliate is a strong credit account. If you have a credit account that is 4-5 years old and you have maintained your credit quite well, then you can be a tradeline associate.
In fact, creditors and other financial institutions encourage you to become a tradeline affiliate. You can have at least 4-5 active users on your credit card. But we suggest you keep it around 2 or 3 for security reasons.
Types of Credit Tradelines
Now, tradelines are not as straight as you think they are. There are of many types but 3 main types which operate commonly are;
Open Account
These tradelines are the ones that don’t have any limit. You can use these accounts for grocery, utility bills, and other purposes. However, you have to clear the debt in one go at the end of the month.
Revolving Account
Credit cards are the prime example of these accounts. These accounts work on a general principle that you borrow bank money to a certain limit, pay it off, and borrow again.
Installment Loan
These account follows an installment strategy to pay off your debt. For instance, you take money for your house mortgage or car and then pay it back in installments in a certain period.
A Step Closer to Your Financial Freedom
When you add tradelines to your credit card, you improve your credit score and your creditworthiness. Whether you are starting a business, investing in one, or buying a house or a car, this credit score helps you in securing your finances.
For instance, with tradelines, you add a mix of diversity in the form of different credits like installments, credit cards, etc. It tells your creditors about your commitment towards credit and shows off your ability to manage its different kinds, boosting your credit score.
Hence, tradelines can be a great way for beginners and experts alike to have a strong financial standing.