What Is a Tradeline?

What a tradeline is

Each credit card, loan or other account a lender reports to the credit bureaus appears on your report as its own entry. That entry is a tradeline. The nationwide bureaus are Equifax, Experian and TransUnion. Each keeps its own file on you, which is why you can get a report from each one, and why it is worth checking all three.

What an entry usually shows

• The lender's name and a partly masked account number
• The type of account, such as a credit card or an installment loan
• When it was opened, and its limit or original amount
• The current balance and the account's status
• A history of payments, including any reported late payments
• Whether you are the owner, a joint owner, or an authorized user

A wrong entry in any of those fields is worth disputing. Start with how to read your report.

How other kinds of accounts appear

Authorized-user accounts

An authorized user is someone an account holder allows to use an account, often a credit card, without taking on legal liability for the charges. The CFPB says the account's credit history is reported for both the holder and the authorized user, and that the entire history can appear on the authorized user's record once they are added. Its example is a person added to a 20-year-old card, whose record would quickly show 20 years of account history.

The CFPB also notes that newer versions of some scoring models, such as FICO, count these accounts for less than an account in the consumer's own name with similar characteristics. The holder's missed payments can appear on your file too.

Credit-builder loans

In a credit-builder loan, the lender places the loan amount in a locked savings account while you make monthly payments. The CFPB says the lender reports your payment history to the three major credit reporting agencies as a standard installment loan, and that terms vary by lender. That makes it a tradeline in your own name.

Questions to ask before you rely on any tradeline product

• Who is the lender, and are the terms in writing?
• Which bureaus does it report to, and when does reporting start?
• What is the total cost, including interest and fees?
• What happens to my payments if I miss one or stop?
• Does the seller promise a score or a result? No one can.

The Credit Repair Organizations Act bars companies that offer credit repair from demanding payment before the service is fully performed, and from making untrue or misleading claims about their services. If someone asks for money up front to place an account on your file, ask why before you pay.