This is your boy, Ivan Hall, the Credit King. Do you want to have good credit? If so, then you need to have good primary trade lines. What are the primary tradelines? You ask, A primary tradeline is a credit account that you have opened in your own name in which the creditor extends credit to you as the borrower.
What Is A Primary Tradeline?
When you open a credit card on your own, you have a primary tradeline. This means that you are responsible for the transactions that occur on this tradeline. As you can see, primary tradelines are the most common type of tradeline, and chances are you already have one in your own name.
The Best Way To Add Primary Tradelines
The best way to add primary tradelines to your credit report is to open accounts in your own name and keep them in good standing by always paying on time and keeping the utilization low. What kind of primary tradelines to apply for include credit cards, auto loans, home loans, or any line of credit on which you are the primary account holder.
This is a foundational step in building a balanced mix of credit with an authorized user AU trade line. In this case, you are added as an authorized user to someone else’s account, which means you are not responsible for charges made but the account can still be added to your credit report.
In contrast, you are responsible for the charges on your own primary accounts since you are the one on the hook for the debt. Therefore, it’s important to have some primary accounts in your credit file as part of your foundation for good credit.
It is also why some believe that primary tradelines are superior to AU Trade Lines. However, when it comes to buying tradelines, AU tradelines are still very powerful tools.
While buying primary trade lines is unfortunately often associated with scams and fraud, it is usually best to get free primary tradelines by opening them yourself rather than trying to purchase them. You can acquire primary tradelines for free by opening a credit card or another type of account.
There may be a few instances in which people can legitimately purchase primary tradelines, but probably not many. It’s just common sense If a primary tradeline is an account opened in your name of which you are the primary user, how could you buy one that already exists? How would that account have been created? Someone else had to have opened that account in their name at some point, so how does it become your primary tradeline? People often assume that primary tradelines are better than authorized user tradelines because they are in their own name and indicate more financial responsibility.
Buying Tradelines
However, in the case of buying tradelines, that is often not the case according to Fico revolving debts. For example, credit cards are weighted more heavily than installment debts. For example, auto loans and mortgages the reason for this is that while installment debt is often secured by collateral such as your car in the case of an auto loan, revolving debt is typically unsecured, which makes it riskier for the lender.
Therefore, revolving debt is a better indication of one’s credit risk, which is why it affects your credit score so much. In addition, the credit utilization part of your credit score, which makes up 30%, only factor in revolving accounts, so adding an installment loan would not help your utilization ratio.
When it comes to buying tradelines, it makes sense to go for revolving accounts rather than installment accounts when you buy authorized user trade lines. They can help with utilization because they are authorized user positions on credit cards and because they are revolving accounts if you really want to buy a primary revolving account. exactly could that be done.
You might wonder if you could just pay to have someone else’s credit card account transferred to your name, but it’s not possible to do that since the lender issued the credit to the primary user and not you when buying primary trade lines.
It is probably more likely to be an installment debt such as an auto loan, which is not as impactful to credit scores, and you cannot legitimately show any payment history since this was not your account when it comes to buying authorized user tradelines versus primary trade lines.
For several reasons, we believe it is better to buy au trade lines. First is the power of au trade lines due to eco and regulation. The credit bureaus are forced to consider authorized user positions on credit cards largely because the banks do not distinguish whether an au is a spouse or not.
Therefore, if the credit bureaus weigh an au position relatively close to the primary position, then the primary position is not much more valuable than an au position.
Second, primary tradelines for sale are usually going to be some form of installment loan, and those are not as powerful as revolving accounts, meaning an au revolving account is more powerful than a primary installment loan.
Then there is the myriad of other reasons that make buying primary trade lines risky or less desirable. For example, primary tradelines cannot legitimately come with any payment history, so it will either appear that you are not seasoned, or you are probably engaging in some sort of fraud.
Legitimate revolving primaries often involve getting lines of credit at jewelry stores, for example, but the credit limits are low and there is no age to them, and age is the most important factor in a tradeline.
BeCareful Of Fraud
Most of the other methods mentioned above are often associated with fraud, which of course you want to avoid. You are trying to play the credit game, but it is important to stay within the legal lines when considering purchasing a primary tradeline versus an authorized user tradeline.
In the authorized user case, there is no lie. You have legitimately been added as an authorized user on that account. On the other hand, often when buying season primary accounts, you know it is not really your account.
Therefore, saying the account belongs to you is fraudulent. In contrast, the authorized user account is not claimed to be primarily your account, which is a verifiable fact, and no laws prevent you from having the right to be an authorized user. Now that you know, go get that money.