Purchasing tradelines is a relatively common practice for those looking to get a boost to their credit score. That\u2019s because when you purchase a tradeline, you\u2019re added as an authorized user for the account. The benefits of that account, such as its age or credit utilization, then impact your credit score, potentially driving it up. <\/p>\n\n\n\n
While these potential benefits may improve your credit score, purchasing too many tradelines could put you at some risk. To better understand your tradeline limit, it\u2019s important to understand the reasons for your purchase and how these tradelines reflect on your credit report. <\/p>\n\n\n\n
There are two critical answers here. The first: There\u2019s technically no limit as to how many tradelines you purchase. The second answer is you may actually harm your credit score by adding too many. Of course, if you end up lowering your credit score, you\u2019ll have paid money you could likely use elsewhere, such as to pay down debt, while receiving worse consequences than if you continued to pay your monthly bills on time. <\/p>\n\n\n\n
There comes a time when adding more tradelines<\/a> to your credit report will lead to diminishing returns. As tradelines aren\u2019t always inexpensive, this means you\u2019re throwing away more money to receive worsening results. <\/p>\n\n\n\n Beyond the loss of money, though, you may also experience issues with your credit report if you purchase too many tradelines. For instance, underwriters at the financial institution reviewing your credit report may flag your account for abuse of authorized user tradelines. When this occurs, the financial institution will, at the very least, refuse to take into consideration all accounts on which you are listed as an authorized user. In many cases, this will result in the underwriters denying your loan or credit application. As recent credit applications themselves can affect your score, you\u2019ll likely see a lowered credit score once the process is completed. <\/p>\n\n\n\n Banks and financial institutions take credit reports very seriously. Per Experian, one of the leading credit agencies, you may open yourself up to charges of bank fraud<\/a> by purchasing too many tradelines. This is because a credit report is supposed to represent your true and honest creditworthiness. If you\u2019re taking advantage of the positives that come along with purchasing a tradeline without also engaging in the good behaviors that lead to a higher credit score, financial institutions may conclude that you\u2019re falsely representing yourself. <\/p>\n\n\n\n While there is no specific idea number of purchased tradelines, there are some rules of thumb that may help. Anecdotal evidence shows that many banks will flag a credit report that has more than three tradelines. Having more than three authorized user tradelines may cause your financial institution to discount the impact of all authorized user tradelines, purchased or not. <\/p>\n\n\n\n Generally, there may be times when it may benefit you to purchase only a single tradeline: <\/p>\n\n\n\n However, there also may be times where you feel it\u2019s necessary to purchase two or three tradelines: <\/p>\n\n\n\n If you\u2019re unsure how many tradelines to purchase, you should take the time to know what goes into a good credit score<\/a>. By comparing your own report to the factors that go into a good, or even perfect, credit score, you can easily identify where you may fall short. <\/p>\n\n\n\n If you\u2019ve already purchased three tradelines and still aren\u2019t seeing the results you\u2019d like, it\u2019s time to examine your own financial behavior and see where it can be improved. For instance, if you have the funds to purchase a fourth tradeline, that money may be better spent paying off some of your current debt<\/a> even if it doesn\u2019t completely zero it out. <\/p>\n\n\n\n If you haven\u2019t already, you should create a budget and see where you have the opportunity to reduce spending. This can free up funds that can go towards reducing your credit utilization or help you realize that another loan or line of credit isn\u2019t needed. <\/p>\n\n\n\nWhat\u2019s the Ideal Number of New Tradelines? <\/strong><\/h5>\n\n\n\n
What Should You Do If You\u2019ve Hit Your Tradeline Limit? <\/strong><\/h5>\n\n\n\n
Coast Tradelines Is Here To Help <\/strong><\/h5>\n\n\n\n