Buying Tradelines: How Many Tradelines Do I Need?

March 30, 2021CreditBy toptierfinancial

When purchasing tradelines, there are some cases where it is best to get a single tradeline and other cases when multiple tradelines might be more appropriate. To help you decide, we’ve provided some examples for each scenario below.

When to Buy Two or More Tradelines
Thin Credit File (Too Few Accounts)
Balance out derogatory accounts with positive tradelines.

Balance out derogatory accounts with positive tradelines.

Credit scoring models value a mix of several different types of credit accounts, so a thin file with only a few accounts might be limited in what it can achieve. In this case, adding a few tradelines would be ideal because it would help increase the number of accounts in the file.

On the other hand, someone with no credit at all or an extremely thin file can also experience significant benefits from adding one tradeline, since they didn’t have much there to begin with. Of course, more than one tradeline will help even more.

Balancing Out Derogatory Accounts

Accounts that have negative marks such as late payments and collections can really drag down credit. Derogatory accounts need to be outweighed by positive accounts, so one’s credit report should contain at least 2-3 positive tradelines for every negative account. Therefore, multiple tradelines may be necessary to balance out derogatory accounts damaging one’s credit.

Maximizing Results

For those looking to get maximum results, buying several of our best tradelines would be the ideal plan. This becomes increasingly important for people who already have good credit (680 FICO or higher) because it is much more difficult to significantly impact one’s credit report with a file that is already relatively strong.

There is also a point of diminishing returns on tradelines for those with already high credit scores, so situations like this require purchasing the absolute best quality tradelines in order to achieve positive results.

In other instances, the goal may be extremely important and the risks of failing to meet that goal may be significant. In situations where the outcome is very important, we recommend using the maximum strength possible.

Of course, the risk is that there are no guarantees on what the results will be, but at least you can be sure that you received the maximum benefit possible from tradelines. The rest is up to you.

Posting to a Specific Credit Bureau
protect against non-postings in time-critical situations with additional tradelines

In time-critical situations, purchasing additional tradelines will help protect against potential non-postings.

If it is important for a tradeline to post to a specific credit bureau, this is a good time to consider purchasing more than one tradeline.

Unfortunately, banks and credit card companies are not always 100% accurate in their reporting process, so while we guarantee that each tradeline will post to at least any two out of the three major credit bureaus, we do not have any control over which of the three bureaus the tradelines will post to.

Because there is always a degree of uncertainty with tradelines, if you are looking to get a tradeline to post to a specific bureau, purchasing extra tradelines will help provide the added security you need.

Important Time-Sensitive Events

Similarly, if something important and time-sensitive is going on that depends on the tradelines posting, the safest bet is to get more than one tradeline. Again, we do offer a money-back guarantee in the event that a non-posting occurs, but the fact is that non-postings do occasionally happen due to inconsistent reporting by the banks.

In time-critical situations, there may not be time to exchange a non-posting tradeline for a new one and wait for the new one to post. If you are counting on tradelines to post within a certain time frame, investing in additional tradelines will help hedge against potential non-postings.

When to Buy One High-Quality Tradeline
It's usually best to purchase one high-quality tradeline if there are budget constraints.

It’s usually best to purchase one high-quality tradeline if there are budget constraints.

Budget Constraints

If your budget is constrained to a certain dollar amount, it is usually better to purchase one high-quality tradeline rather than dividing that amount between two tradelines that are not as high in quality.

This is because credit scores consider both your average age of accounts and the age of your oldest account. A single account with lots of age has more potential to increase those numbers, while two accounts with less age may not offer as much improvement or might even dilute the credit file.

Here is a hypothetical example to consider. Let’s say your current average age of accounts is 2 years. If you were to spend the same amount of money in either case, would it be better to buy two tradelines that are both 4 years old, or one tradeline that is 8 years old?

If you decided to buy the two 4-year-old tradelines, this would increase your average age of accounts to about 3 years ([2 + 4 + 4] / 3 = 3.3) and your oldest account would be 4 years old.

On the other hand, if you were to buy one 8-year-old tradeline, this would bump up your average age of accounts to 5 years ([2 + 8] / 2 = 5) and your oldest account would be 8 years old.

In the second scenario, you end up with a higher age for both of these important credit history factors. Be sure to check out our tradeline buyer’s guide and tradeline calculator to help determine the best plan of action for your situation.

Current credit file
After adding 2 4-year-old tradelines
After adding 1 8-year-old tradeline

Average age of accounts
2 years
3 years
5 years

Age of oldest account
2 years
4 years
8 years

One high-quality tradeline is best for very thick files.

It is more difficult to affect the average age of accounts when there are many accounts, so one high-quality tradeline tends to be the best choice for very thick files.

Extending the Age of Your Oldest Tradeline

The age of the oldest account in your credit file is a very important data point. If the goal is simply to extend the age of the oldest tradeline in the credit report, then of course only one tradeline is needed. The tradeline just needs to be older than the oldest account that is currently on file, but obviously, the more age the better, so we recommend going significantly older.

Very Thick File (15 or More Accounts)

A very thick file with a large number of accounts will “dilute” the power of any tradelines that are added. Since there are so many tradelines already in the file, it will be more difficult to affect the average age of accounts. Therefore, one premium tradeline with a lot of age and a high credit limit will be a better fit for a very thick file, rather than multiple less potent tradelines.

Focusing on Credit Limit

Some consumers are less concerned with the age of the tradelines and more concerned with the credit limit for their specific circumstances. If a high credit limit is the main priority, it will usually make more sense to purchase one tradeline with a high credit limit rather than multiple tradelines that have lower credit limits.

If a high credit limit is the goal, usually one tradeline is enough.

If a high credit limit is the goal, usually one tradeline is enough.

The strategy on this topic may vary depending on what you are trying to accomplish and what your goals are, but in general, if you can accomplish the goal with one tradeline, that would probably be the better option.

Modest Goals

Depending on what a person’s goals are, they may not need to get the maximum results possible. For smaller goals, one tradeline may be all they need. However, it is always best to try to overshoot the goal in order to have some extra insurance in making sure the goal is truly achieved.

No Credit File or an Extremely Thin File

As we mentioned previously, adding a few tradelines to a thin credit file is ideal because it greatly increases the number of accounts in the file.

Adding one tradeline to a very thin file can make a big difference.

Adding just one tradeline to a very thin credit file can make a big difference.

However, it’s also important to keep in mind that someone with no prior credit history or an extremely thin file may still find value in buying just one tradeline, since adding one account to a baseline of zero or one existing accounts is still a significant change.

As an example, adding one tradeline to a credit report that previously only had one account in it represents a 100% increase in the number of accounts in the file! This not only adds valuable age and payment history but also impacts the “credit mix” factor in credit scoring.

Key Takeaways on How Many Tradelines to Buy

To summarize when you should consider purchasing a single tradeline versus when you should consider investing in more than one tradeline, we have included the main points of this article in the table below.

When to Buy Two or More Tradelines
When to Buy One High-Quality Tradeline

If you have a thin credit file (too few accounts)
If you have budget constraints

If you need to balance out derogatory accounts
When you want to increase the age of your oldest tradeline

When you want to maximize results
If you already have a very thick file (15 or more accounts)

When you need a tradeline to post to a specific credit bureau
If you want a high credit limit

If you need a tradeline for an important, time-sensitive event
If you have modest goals

If you have no credit file or an extremely thin credit file

If you are wondering how many tradelines you need, remember that the power of tradelines is always going to be relative to your current credit file and it is important to consider what will be the best fit for your specific situation.

In some situations, it may be important to maximize results using multiple powerful tradelines, such as when you are trying to accomplish a major goal or when there are serious hurdles to overcome. In other cases, one good tradeline might be all you need.

Whatever the case may be for you, it is always best to understand how tradelines work first and foremost and avoid making any common mistakes.

In simplest terms, the safest option is always to overshoot your goal and stick with the highest quality tradelines within your budget, and remember that in most cases, age is key. If budget is a big concern, then it’s usually best to just buy one of the highest quality tradelines your budget allows.

What are your thoughts on this article about how many tradelines to buy? We would love to hear your feedback, so leave a comment below!

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What Are Credit Scoring “Buckets?”

December 20, 2019CreditBy toptierfinancial

Most of the time when I’m asked about credit scores the line of questioning is commonly about how to improve scores. It’s equally often, and equally enjoyable, when I receive questions from people about how many points certain things from your credit reports are worth to their credit scores.  The questions generally go something like this… “How many points is a charge off worth” or some variation of that question.

Not only are these questions common but they are also reasonable. We grow up in an academic environment where questions on tests are worth a certain number of points toward our final grade. For example, if you have a test with 25 questions then each question is worth 4 points for a possible grade of 100. Credit scoring systems, however, are not designed such that entries on your credit reports are worth any specific number of points.

That’s Not How Credit Scores Work

If you ever read a book or blog or hear someone suggest that credit report entries are worth a specific number of points, you can ignore it because it’s factually inaccurate. Nothing on your credit report is worth any specific number of points, either positive or negative. Scoring models do not assign points like that because they’re not designed to do so.

Instead, credit scoring models assign points based on how well you have performed in certain credit scoring categories. Without getting highly technical and jargon-heavy, points are assigned based on how your credit reports answer questions asked by the credit scoring models.

Buckets, Bins, Variable Classing…They’re All the Same Thing.

Credit scoring models are made up primarily of three things…characteristics, variables, and weights. These three things can also be described as…questions, answers, and points. These three work in concert as part of the scoring process.  Here is an example of how it works:

Characteristic (aka, a question asked by the scoring model)

Example: How many credit card accounts do you have with a balance greater than zero?

Variable/Bucket (aka, the answer from your credit report)

Example: I have 4 credit card accounts with a balance greater than zero.

Weight (aka, the points assigned by the credit scoring model based on the answer)

Example: If you have between 3 and 6 credit card accounts with balances, you earn 20 points. As such, because you have 4 cards with balances you have earned 20 points.*

*This fictitious example isn’t meant to mimic the points you’ll earn for having four credit card accounts with balances. It’s simply meant to illustrate how scoring models work.

The variable or “answer” component is also commonly referred to as a bucket or bin. It’s essentially a range where the answer to a credit scoring characteristic/question falls. And, the weight or points are assigned based on which bucket/range your answer falls.

I recognize that this is complex and it might take you a few times reading through this to understand how it works. But, at the very least what this should expose is the truth that no item on your credit report is worth “x” points.

Instead, the bucket/range where your answers fall is what’s worth the points. And, you may have several answers that would cause you to fall into the same bucket, meaning multiple consumers with different credit reports can have the same credit score.

In the above example, the variable bucket was “between 3 and 6 credit card accounts with balances.” And, that bucket was worth 20 points to your credit score. So, if your credit report had either 3, 4, 5 or 6 credit cards with balances your answer would have fallen in the same bucket and you would have earned the same 20 points.

This is precisely why the people who try to assign a specific value to any one credit report entry are universally incorrect. In this example, you would have earned an equal 20 points toward your score even if you had 4 different credit reports.

Your Never “Lose” Credit Score Points

Here’s another one that’s going to blow your mind. Your credit score doesn’t start out at a perfect 850 and then go down based on your credit reports. You instead start low and accumulate points.

Nothing on your credit report is worth negative points. So, collections are not worth negative 50 points. Charge offs are not worth negative 100 points. It doesn’t work that way. Your score doesn’t go down because of negative information, it just simply isn’t as high as it could be because you’ll accumulate fewer points during the scoring process.

If you have any of those negative items, like collections and charge offs, you would fall into a bucket that would be worth fewer points than you would have fallen into if you did not have those types of negative entries. That’s why people who have negative entries have lower scores, generally, than people who do not. They earn fewer points, rather than lose more points.

You can apply these examples to every scorable entry on your credit reports. This includes inquiries, the presence or lack of negative information, debt and debt-related ratios, the age of your credit report information, and the diversity of your credit report entries.

John Ulzheimer is a nationally recognized expert on credit reporting, credit scoring and identity theft. He is the President of The Ulzheimer Group and the author of four books about consumer credit. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. He has 27+ years of experience in the consumer credit industry, has served as a credit expert witness in more than 370 lawsuits, and has been qualified to testify in both Federal and State courts on the topic of consumer credit. John serves as a guest lecturer at The University of Georgia and Emory University’s School of Law.

Disclaimer: The views and opinions expressed in this article are those of the author John Ulzheimer and do not necessarily reflect the official policy or position of Tradeline Supply Company, LLC.

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Wholesale Tradelines: What Are You Really Buying?

June 14, 2019CreditBy toptierfinancial

When searching for seasoned authorized user tradelines, you’ll probably see a lot of companies promising “wholesale tradelines.”  

What does it mean if a company offers “wholesale tradelines?” If a tradeline company says they have wholesale tradelines, does that mean they have the best tradeline prices? Or is this term more of a marketing gimmick than a useful indicator of a tradeline company’s pricing?

Keep reading for our perspective on the topic of wholesale tradelines.

What Is the Definition of Wholesale Tradelines?

To begin, let’s define the word “wholesale.” If something is described as wholesale, that typically means it is being sold in large quantities to be resold by others, such as retailers. In other words, it is usually not sold to the end consumer.

Therefore, “wholesale tradelines” would seem to mean tradelines that are not sold directly to consumers, but to other people or businesses who then resell the tradelines to the end consumers.

However, in reality, many companies simply use this buzzword as a substitute for the word “cheap,” which is not only inaccurate but often intentionally misleading.

Marketing Tactics Used Within the Tradeline Industry

If you look at the prices of the companies boasting wholesale tradelines, what do you notice? Do they really have better prices?

Most of the time, the prices are on par with what you might expect from any other tradeline company.

However, if you are a tradeline broker, they may try to entice you with a broker “discount” of up to 50%.

Although you may see companies offering 50% off tradelines, it's important to determine your bottom line dollar amount.

Although you may see companies offering 50% off tradelines, it’s important to determine your bottom line dollar amount.

That 50% off sounds appealing until you consider the fact that even with the 50% off discount applied, those tradelines might still be more expensive than tradelines of the same quality at a company that has truly fair pricing to begin with.

For example, we often see competitors selling tradelines for $1,500 while our normal price for that same tradeline is around $600. Then, if you buy into the 50% off program you would then get that tradeline for $750. In this case, our regular pricing is still cheaper, even without a discount.

So would you rather go for the 50% off deal for $750 or just buy from us at $600? Additionally, if you are a broker at the 30% off level with us, you would get that same tradeline for $420.

In this example, our pricing is actually 72% lower than the competition’s pricing, but we don’t need to use that style of advertising when we know our pricing is lower than most other companies in the first place.

Tradeline Broker Programs

While many tradeline companies do offer tradeline reseller discount programs, these programs are typically quite expensive to join. We have seen fees ranging from $499 to nearly $3,000 to join these broker programs.

If you have to pay that much money in order to get a discount on your tradeline orders, then what are you really gaining?

In contrast, at Tradeline Supply Company, LLC, it is completely free to be a broker representative and even to join our White Label broker program. Our brokers get discounts of up to 30% off all tradeline orders depending on their sales volume.

Our prices are already some of the lowest in the industry, and with an extra 30% off on top of that, our pricing should be very difficult to beat, despite any “wholesale” advertising gimmicks other companies may try to offer. In fact, our margins are very slim at this level of discount which goes to show that our prices are as low as we can possibly make them.

Plus, even customers who are not tradeline resellers can use our package deal discount to save up to 30% on tradeline packages.

While other tradeline companies may offer discounts that seem bigger at first glance, their prices also often start much higher. Our lower starting prices mean our customers and brokers get the best value for their money, especially considering that our prices include a money-back posting guarantee. That’s why we don’t need to use gimmicks or deceptive tactics to market our tradelines.

Conclusions on Wholesale Tradelines

If you are looking to buy tradelines wholesale, you really need to look carefully at what your final price will be so you can compare apples to apples. For example, when you see the 50% off sale at the high-priced retailer at the mall, you often realize that it is still more expensive than purchasing the same item for at a discount store or on the internet.

Additionally, imagine how you would feel if you bought into a “discount” program that cost you thousands of dollars and then you find out that the company decided to increase their prices to offset that discount. All of that money would have essentially been wasted.

It is important to be able to see past the marketing claims and flashy discount programs. Make sure to think through your tradeline purchase, compare bottom line prices, and do the math for yourself to make sure you are getting the best deal possible.

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