While you may be familiar with the different aspects of your credit report and how the information on it can impact you and your financial history, there may be one element that you are unfamiliar with. Tradelines play an important role in your finances, so it’s critical to understand what these are and the impact they can have on your report. If you want to learn more about this matter so you can protect your finances, you’ll want to keep reading. You’ll also discover the importance of working with a San Diego County credit reporting error lawyer to explore your legal options during these complicated times.
What Are Tradelines?
In short, tradelines are all the credit accounts listed on your report. There are a number of different forms, so understanding what they are and the impact they can have on your credit is critical.
Generally, the first type of credit is revolving tradelines. This is not a fixed payment, meaning you can pay it off to gain available credit. This is most commonly represented by credit cards that allow you to gain more utilization on your account with each payment you make.
The other form of tradeline you may find on your report is installment credits. These represent loans you may have taken out with fixed repayment terms, like a mortgage or auto loan.
You may also find that collection tradelines appear on your credit report. As the name suggests, you’ll find that these are representative of debts that a collector has sent to collections. This means that it will show up as a separate tradeline on your account, even though it may be connected to a revolving or installment credit tradeline.
Aside from the actual tradeline appearing on your report, there will be a considerable number of details you must consider. Generally, this includes when the account was opened, the current balance, payment activity, and what the monthly payment for the account is, among other details.
How Will This Information Impact My Credit Score?
There are a number of ways in which tradelines can impact your credit report. Generally, you’ll find that the most impactful aspect of tradelines on your credit report is whether or not you have made on-time payments. Your payment history accounts for 35% of your FICO credit score.
You should also note how long tradelines will appear on your credit account, as this can also impact your score. For example, an open tradeline, like a credit card, will remain indefinitely on your account. However, a closed tradeline, meaning an account you’ve closed, will vary. If the account is in good standing, it can remain on your report for ten years, though if it’s in poor standing, it will remain for seven. It’s important to understand that these accounts can continue to impact your credit, though their effects may diminish over time as your credit habits change.
As such, if you discover that the information connected to your tradelines is incorrect or otherwise erroneous, it’s imperative to connect with an experienced attorney with Barthel Legal. Our firm understands how mistakes involving your credit history can negatively impact your finances, which is why we will do everything in our power to help you fight for the justice you deserve. When you need assistance, contact our team today to learn how we can assist you.
