When to buy two or more tradelines

When to buy two or more tradelines

Thin credit file (too few accounts)

Credit scoring models value a mix of several different types of credit accounts, so a thin file with only a few accounts might be limited in what it can achieve. Adding a few tradelines is ideal here because it increases the number of accounts in the file.

Someone with no credit at all or an extremely thin file can see significant benefits from even one tradeline, since there wasn’t much there to begin with. Of course, more than one will help even more.

Balance out derogatory accounts

Negative marks such as late payments and collections can really drag down credit. Positive accounts need to outweigh the derogatory ones, so a credit report should contain at least 2 or 3 positive tradelines for every negative account.

Multiple tradelines may therefore be necessary to balance out derogatory accounts. For optimum results, buying several of the best tradelines is a smart plan.

Maximize results

For maximum results, buying several of our best tradelines is the ideal plan. This matters most for people who already have good credit (680 FICO or higher), because it is much harder to significantly move a file that is already relatively strong.

There is also a point of diminishing returns for people with already high scores, so these situations require the absolute best quality tradelines to achieve positive results.

In other cases the goal may be extremely important and the risk of missing it significant. When the outcome really matters, we recommend using the maximum strength possible.

There are no guarantees on what the results will be, but at least you can be sure you received the maximum benefit possible from tradelines. The rest is up to you.

Posting to a specific credit bureau

If it is important for a tradeline to post to a specific credit bureau, this is a good time to consider buying more than one.

Banks and credit card companies are not always 100% accurate in their reporting. We guarantee each tradeline will post to at least two of the three major credit bureaus, but we have no control over which of the three it posts to.

Because there is always some uncertainty, buying extra tradelines gives you added security when you need a specific bureau.

An important, time-sensitive event

If something important and time-sensitive depends on the tradelines posting, the safest bet is more than one. We offer a money-back guarantee if a non-posting occurs, but non-postings do occasionally happen due to inconsistent bank reporting.

In time-critical situations there may not be time to exchange a non-posting tradeline and wait for the new one to post. Additional tradelines hedge against that risk.

When to buy one high-quality tradeline

It’s usually best to buy one high-quality tradeline in the situations below.

Budget constraints

If your budget is limited to a certain amount, it is usually better to buy one high-quality tradeline than to split that amount between two lower-quality ones.

Credit scores consider both your average age of accounts and the age of your oldest account. A single account with lots of age has more potential to raise both numbers. By contrast, two younger accounts may not help as much and might even dilute the file.

A hypothetical example: your current average age of accounts is 2 years. For the same money, is it better to buy two 4-year-old tradelines or one 8-year-old tradeline?

Two 4-year-old tradelines raise your average age to about 3 years ([2 + 4 + 4] / 3 = 3.3) and make your oldest account 4 years old. One 8-year-old tradeline raises your average age to 5 years ([2 + 8] / 2 = 5) and makes your oldest account 8 years old.

In the second scenario you end up with a higher age for both of these important credit history factors:

Extending the age of your oldest tradeline

The age of the oldest account in your file is a very important data point. If the goal is simply to extend it, you only need one tradeline. It just has to be older than your current oldest account, and the more age the better, so we recommend going significantly older.

Very thick file (15 or more accounts)

A very thick file “dilutes” the power of any tradelines you add, because it is harder to move the average age of accounts. One premium tradeline with a lot of age and a high credit limit is most likely to help a very thick file, rather than several less potent ones.

Focus on credit limit

Some consumers care less about age and more about credit limit. If a high limit is the main priority, it usually makes more sense to buy one tradeline with a high credit limit than several with lower limits.

The strategy varies with your goals, but in general, if one tradeline can accomplish the goal, that is probably the better option.

Modest goals

Not everyone needs the maximum possible result. For smaller goals, one tradeline may be all you need. Even so, it is always best to overshoot the goal slightly, as insurance.

No credit file or an extremely thin file

Adding just one tradeline to a very thin credit file can make a big difference, since there wasn’t much there to begin with.

For example, adding one tradeline to a report that previously had only one account is a 100% increase in the number of accounts. It adds valuable age and payment history and also affects the “credit mix” factor.

Key takeaways: how many tradelines to buy

A summary of when to buy one tradeline versus investing in more than one.