3 Tips to Choose the Right Tradeline for You

Investing with Behavioral Finance

As a millennial, it can be difficult to overcome certain financial stereotypes that have been pinned on this demographic, including laziness and incorrect or irresponsible spending.

Not only are these stereotypes unjust, but they overlook key economic challenges that this generation faces, such as the student loan crisis and an ever-competitive job market. Due to these struggles, the majority of millennials (roughly 56%) report feeling very unsatisfied or somewhat unsatisfied with their current financial situation.

Choose the Right Tradeline

If this sounds like your situation, then you may be exploring your options to improve your financial situation – and tradelines may be one of the tools you’re researching. Below, we’ve compiled three tips to help you choose the right tradeline for you.

1. Do Your Research

The first step in selecting the right tradeline for you is to make sure you fully understand what they are. A tradeline is the activity record for a type of credit that is extended to a borrower and is reported to a credit agency. A tradeline is set on a borrower’s credit report when that individual is approved for credit (e.g. a credit card, a line of credit).

Once you have a firm grasp on the definition of a tradeline, you must continue to do your homework on various aspects related to them. For instance, you must educate yourself on the different types of tradelines, your eligibility for them, the risks vs. rewards, and how they can impact your credit score.

2. Consider an Authorized User Tradeline

If this is your first tradeline, you may want to think about getting an authorized user (AU) tradeline. This means you become an authorized user on someone else’s tradeline, rather than owning one yourself. Think of it as piggybacking on someone else’s good credit standing to boost your own.

There are a couple of different ways you can become an authorized user on someone’s tradeline. First, you can ask a family member or your partner to add you to their tradeline. This is a safer option because you know and trust the person. Alternatively, you can pay someone to become an authorized user on their tradeline. This is a riskier option because you don’t know them. They could have poor financial habits or fail to make regular, on-time payments.

3. Compare Tradeline Companies

Another key step in choosing your right tradeline is to contrast the offerings of several tradeline companies. The best tradeline companies will be transparent in promoting the services and support they offer, so this kind of research shouldn’t be overly time-consuming. Carefully examine the pros and cons of each organization and how well their customer service framework aligns with your needs. When comparing tradeline companies, consider factors like:

  • Pricing
  • Limits or caps on tradelines
  • Customer service support
  • Public reputation
  • Inventory selection
  • Unique features (such as tradeline bundles)

Tradelines present a unique solution to many Millennials’ financial challenges. By implementing these three simple steps, you’ll greatly ease the process of finding the right tradeline for you. Once you do, you’ll be one step closer to securing the financial future you deserve. 

Leave a Comment