Trade Lines – Still A Viable Option?

Adding authorized users to trade lines is a controversial topic. Lately it seems there are more critics with an opinion on the topic; unfortunately, the critics aren’t providing the public with honest and accurate information. There are critics who would like you to believe that after September 1st the practice of adding authorized users to enhance a credit score will not be effective. That just isn’t the case.

There are three credit bureaus: Experian, Equifax and TransUnion. Fair Isaac owns Experian and Fair Isaac is the company that has developed the FICO scoring models.

Experian is the only credit reporting agency that will be implementing new software September 1st and this software in effect will not acknowledge authorized users that are added to trade lines. However, it is very important to note that Equifax and TransUnion will still be using the previous versions for their scoring models that notice authorized users.

It is important to note that even in the event that Experian will implement the new software, that means ALL lenders that use Experian MUST also use the new Fair Isaac software in order to access Experian’s new credit score for the client. This is important; if a lender or bank has NOT purchased and implemented the new Fair Isaac software, then the score that Experian delivers, will revert to the old scoring model; the scoring model that recognizes authorized users.

As history has suggested, in most cases, it takes a long time for banks to implementing new software. As an example, most lenders still use Fair Isaac’s 1997 scoring model, even though many newer versions have been released since then.

We know there are many hard working Americans that need to refinance out of their high adjustable-rate mortgages and into lower fixed-rate mortgages but can’t because of low credit scores. Adding seasoned trade lines is the fastest way to boost credit scores and remains the best method to increase credit scores in the shortest period of time.

It is encouraging knowing that lately our trade lines have been increasing scores and appearing on our clients credit reports within 10-30 days. There is no need to lose your home and learn from financial mistakes when you can learn from your successes.

Ted Stearns, owner of TradeLine Solutions, a San Diego based credit aide company, is not a newcomer to the world of finance. His experience began as an options and futures broker with Currency Trading International about 12 years ago. Since then he has been a financial advisor who hosted a live radio show on AM 1000 KCEO for four years, educating callers and listeners on stocks, bonds and various investments. Over the last five years he has delved into the nationwide mortgage business informing both clients and lenders alike in the arena of purchasing and refinancing.

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