What Is a Tradeline on a Credit Report?

In the credit industry, the term “tradeline” is used to describe credit accounts on an individual’s credit report. Detailed information related to your credit account is stored on a tradeline. Payment history, balance amount, and important dates are some of the information a tradeline of credit account can reveal. It holds great significance for the credit account holder and the issuance of future loans depends on the trade lines of a credit report. In this article, we have covered all the aspects you need to know about a tradeline and how you can it actually works. 

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Definition and Examples of Tradelines on a Credit Report

Have you ever thought about, what is a tradeline on a mortgage? A tradeline on a credit report is basically referred to as a credit account. This credit report tradeline is used by credit agencies to work out individual credit reports. However, each tradeline on a credit report contains specific details and information generated by the creditor. These details on a tradeline credit report include:

  • Name of creditor
  • Account number (partial)
  • Account type
  • Account opening date
  • Current credit/account balance
  • Current account status
  • Loan/credit limit
  • Last payment
  • Last update
  • Last activity date
  • Payment history
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Tradelines can be categorized into two types: revolving tradeline and installment tradeline. The term revolving tradeline is used for a credit card account or a line of credit. In such types of accounts, the borrower has the freedom to utilize his credit limit whenever needed over a prolonged period of time. On the other hand, an installment tradeline offers a set amount of loan that needs to be paid in installments. Auto loans, student loans, and mortgage tradelines are a few examples of installment tradelines.

How Does a Tradeline Work?

The creditworthiness of a credit account is estimated by a three-digit number known as a credit score. This credit score can be calculated with the help of information stored on tradelines for credit reports. On-time payments, maintaining low balances, and being responsible with credit obligations will lead to positive information on your tradelines which ultimately results in a high credit score.

It is not possible to have a credit score without any trade line of credit. It is mandatory for you to have a minimum of one tradeline, being active during the last six months, to calculate credit scoring. 

How Tradeline Affect Your Credit

Your credit score is significantly affected by the number of tradelines opened at a time. If there are too many of them opened at a time, it will give an impression of you being overextended. However, too few will reflect your lack of experience with credit.

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No particular limit of credit report tradelines for an excellent credit score is given by the credit scoring companies. In order to maintain the best credit score, the ideal situation is to open/close accounts only when required, maintain good standing for your current accounts, and keep debt minimum.

Good credit has numerous benefits, but having good credit doesn’t mean that all of your applications will be approved. Your application for the issuance of a credit card can be denied in case of active applications for multiple lines of credit.

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When Are Tradelines Removed?

The complete and accurate information falling within the credit reporting time limit is reported by the credit bureaus. Any delinquent and negative accounts will also be considered in this information by credit bureaus.

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Your active tradelines of credit, having positive information, can stay on your tradeline credit report for an indefinite period of time. On contrary, despite having positive information, closed tradelines will remain on the tradelines credit report only for a set limit decided by the internal reporting guidelines of the respective credit bureau. However, it will take 7-10 years for any negative information linked with your closed tradelines to vanish from your credit report. This negative information includes but is not limited to bankruptcies and delinquencies.

Let’s take an example of a credit bureau, Experian. It will remove negative information from closed tradelines after seven years, while closed tradelines with positive information will stay on your history for 10 years.

How Is This Information Collected?

Lenders and creditors have agreed with the credit bureaus on certain terms and provide information related to the tradeline. This information is provided by the lenders at the end of each month so that the updated information about the tradelines is revealed by the account.

You can order the credit report for your account to keep up with the most recent details of your credit account. According to federal law, an account holder can get one free credit report from the credit bureaus in one year. Click here to order your free credit report today.

However, TransUnion, Equifax, and Experian provide their users with one free weekly report which can be accessed from AnnalCreditReport.com.           

Why You Should Check for Errors

You must go through your trade lines credit report and check if all the information reported from your side is accurate. In case of any errors in the report like outdated, inaccurate, or incomplete tradelines, you can simply write to the credit bureau for the removal of faulty tradelines.

Any unrecognizable tradelines might be a signal of identity theft. In that case, you can open a dispute with credit bureaus.   

Can You Buy New Tradeline?

You can significantly enhance your credit score by adding new credit tradelines. This way, you can maintain a positive payment history for your credit report. For those having bad or no credit builder loans and store or secured credit cards are some of the best options to consider while opening new accounts.

If you’re having difficulty with getting your account approved and need a shortcut, then you may consider purchasing the tradelines. Several companies are charging some amount to provide you access to someone else’s tradeline having no delinquencies and being open for several years.

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As soon as you are added as an authorized user on behalf of someone else’s credit card, it will enhance your credit score by staying on your credit report for a significant time limit. Once your credit score is boosted, it can be used to apply for credit.      

Does This Method Work?

While issuing you credit card, the issuer sometimes sends reports to the credit bureaus regarding your relation with the primary account holder. And this information is then considered by the lenders while lending you a trade line mortgage or a loan. 

However, purchasing trade lines of credit is not a foolproof method. It is considered a deceptive practice by credit reporting agencies as well as lenders. In order to minimize the influence of purchased tradelines, a scoring model has been reviewed by the concerned authorities. But if you still want to purchase tradelines, it must be done diligently as most tradeline-selling companies and involved in a scam. Thus, the advantages of purchased tradelines are not only for the time being but also unreliable.

So, it is always a better idea to ask your near ones, preferably a family member or friend, to provide you access to their account. It is much better and more reliable than paying hundreds of dollars to the companies selling tradelines. It will positively boost your credit score, without any additional charges.


The information stored on tradelines credit report is of great significance for you, as well as for your lenders. It is the same information used to calculate or generate your credit score, which is ultimately used by lenders or creditors to decide if you’re eligible for the next loan. So, it is very important to maintain a good credit score which is only possible by having a good knowledge and understanding of the tradeline credit report. Therefore, it is mandatory for you to check information against your tradelines thoroughly and ask for correction if required. 

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