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.
How does tradelines work and why are they able to help repair your credit? In order for you to get a better understanding of tradelines, know that there are companies such as Superior Tradelines that can help you in this regard. 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. In a nutshell, FICO analyzes your credit history based on your file stored by your credit reporting agencies with the use of a mathematical equation. 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. With the use of season trade lines, your score will be recalculated as it appears on your credit score. Your credit score will immediately be boosted just like that. 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.
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. If you become an authorized user, you can use the said account but you cannot make changes to it. Originally, the AU position was created to give cardholders the ability to add other people to their account for them to have access to 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. Despite the fact that you do not get the ability to take advantage of the credit line, you benefit in a way that the credit card will appear in your own credit report. With just less than two months, your credit score goes back on track. Click here for more information about tradelines.
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