You’ve paid your bills on time never missing a payment, always spent wisely and used credit responsibly. Now, life got in the way and caused you to miss a payment or two, run up your credit card balances, causing your credit score to decrease.
If this story sounds all too familiar you are not alone, as tens of thousands of Americans find themselves in the same boat in that they want to improve or repair their credit. A credit score helps a lender determine if you are financially well enough to take on debt. Furthermore, your credit score impacts the interest rate you receive when you are approved for a loan. The lower your credit score the higher the interest rate, costing you more over the life of the loan.
Traditional Methods
Credit repair can be summed up easily, especially when it comes to traditional methods of credit repair. The first and most straight forward is to begin borrowing and repaying the debt in a timely manner. This could include obtaining a personal loan or automobile note.
The other method to repair credit is a debt restructure program, which will negatively impact your credit score at first, but over time will allow you to increase your credit score through decreased obligations and increased on-time monthly payments.
These methods work, but it may not be quick enough for those looking to repair their credit quickly.
Tradelines, the Expedited Method
If you are looking to rebuild your credit quickly, without the drastic measures of a debt restructure program, look no further than a tradeline. A tradeline allows you to become an authorized user on a line of credit that is well established and carries a low balance in comparison to their overall credit limit.
It works by attaching your name to the line of credit. However, being an authorized user does not give you the authority to spend, alter information or request line of credit increases. But, what it does is the next time that particular line of credit is reported to the credit bureau, your name will be associated with that healthy line of credit and it can positively impact your credit score.
Using this method can boost your credit score within a few months, whereas traditional methods can take substantially longer. Tradelines are a lesser known service but are an extremely effective way to expedite the credit score-boosting process.
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