I just turned 18 and am trying to figure out where I stand financially and how to improve it. I want to apply for a car loan, but don’t want to get a horrible rate. I know little about credit scores, but could tradelines help improve them?
It’s an excellent question. However, these types of questions should always start with the lender. For example the lender is going to tell you what income requirements are required for a particular credit goal. Also, the lender will tell you the credit score requirements for a particular critical goal.
Once you know those two things, we would be able to tell you exactly which tradelines would work.
Because you’re 18, it is very unlikely that you have significant credit. I know I’m assuming, but I’m assuming for the best. In that case, I think you could see pretty significant increases in credit score after you add authorized user tradelines.
In addition, since you don’t likely have previous auto loans in your credit report, authorized user tradelines will work. However, if you do have recent auto loans on your credit report, authorized user tradelines will have less of an impact because they will utilize Auto enhanced credit scores and Factor your previous Auto history much more than revolving history.
Overall, I think tradelines will help you quite a bit. For more details, you probably want to call a tradeline company like Superior tradelines.
I totally missed a portion of your question regarding what are credit scores. I kind of just went right into goals because that’s what was in the body of your question.
Credit scores are a 3-digit number that supposedly represents your credit worthiness. If you have bad things in your credit report, credit scores go down. If you have good things in your credit report, credit scores go up. Credit scores range wildly and are subject to massive criticism. It’s just a fake system made up by a private company. In fairness, it does make lending easier at the expense of some inaccuracies that can harm consumers and certain situations.
In other words, credit scores are numbers that tell lenders whether or not they should lend to you and at which rates and terms.
Ultimately, credit scores don’t determine everything. Your ability to pay will be evaluated during underwriting.
Trade lines can help improve your credit depending on some factors. Do you already have credit? What accounts do you have? How many inquiries do you have?
There are some other questions I could ask here but let someone else do this work for you.
I can evaluate your credit report and provide a good game plan for you from there.
Reach out to me any time!
Tradelines could be a good strategy for you based on your age, especially if you’re like a lot of other 18 year olds and don’t have anything on your credit report.
If you haven’t already done so, I would start by getting a free credit report. You can go to a site like Credit Karma and Experian and get free reports (take their scores with a grain of salt – they aren’t terribly accurate, but you’ll see all the content that is on the reports). There are three credit bureaus and they’ll probably all show similar data.
If you see that you don’t have any data on your credit reports, tradelines are a great option. If you have negative accounts such as collections, then credit repair or debt settlement might be the best option BEFORE adding tradelines.
Either way, you’re welcome to give me a call and I would be glad to answer any questions you have and help this all make more sense.
Best of luck!
Cory Miller (321-799-6159)