The Definition Of A Tradeline
There’s a term in the credit world called “tradelines.”
Tradelines are an account listed on your credit report. For example, a credit card, car note, student loans, or a mortgage are all consdider tradelines.
Benefit Of Credit Piggy/backing
Broad regulations and legal loopholes allow for you to benefit from being an authorized user on another person’s tradeline (also known as “credit piggybacking”).
The issuing bank reports the positive credit history including the age of the account, the limit of the tradeline and the positive payment history to all 3 major Credit Bureaus (Experian, TransUnion and/or Equifax).
In other words, once you are added as an authorized user to an account, the history of that account appears on “your” credit report and will be treated as if it was “your” credit history.
FICO® Credit Score Factors
The payment history, age, and limit have a direct impact on the FICO credit score model which impacts your utilization ratio, average credit age, and payment history. FICO® digests this newly added credit and recalculates your score with drastic improvements.
Boost Your Credit Score With Tradelines
Ideally, you should have at least 3 open positive tradelines on your credit report. Meaning the account should be OPEN, the payment history is perfect, and the utilization is under 25%.
We do this by adding you as an authorized user to a seasoned tradeline, allowing you to “piggyback” off of the account in good standing.