Mortgage & Finance
What is going on with lending with this crazy pandemic?
With so many people out of work, then back to work, and even sometimes out of work again, there is a huge need for loans, extended credit card lines, use of home equity, etc… to get through these rough times.
Unfortunately, a lot of people do not have great credit, or through circumstances out of their control over the last 8 months, have missed payments on the loans they already have.
In either case, you either already had bad credit, or your credit is getting worse.
If you are looking for loans now, you already know this, but banks are getting tighter with their lending standards.
There are 2 reasons for the tighter standards. First, the risk from borrowers, in general, has gone up significantly since March of 2020 and no one is immune from a layoff or a furlough. Secondly, the banks are required to maintain certain capital levels by the federal government, and that level has become has been raised so that there is no loss in liquidity in the markets.
Those 2 reasons alone have made it very difficult for anyone with even questionable credit to get any type of loan.
One great thing about loans right now though is that the rates for anything from car loans, to mortgages, to credit cards are at the lowest we may have ever seen. People are refinancing at almost 2% on a mortgage, which is unheard of and cars are selling at 0% interest with 6 months of no payments. That just sounds crazy to me.
What is a Seasoned Tradeline?
A seasoned tradeline is basically an existing account of some sort of revolving credit with good credit history, normally 2+ years, normally taken out by someone in good credit standing.
What is Tradeline Piggybacking?
Tradeline Piggybacking is when someone with a good credit score and a seasoned account allows a 3rd party to be listed on the account as an authorized user so that the new 3rd party can improve their credit score through the good credit of this tradeline.
The 3rd party, however, does not get access to any of the information or material necessary to use this account for their own, or the information of the primary party to use for their own credit or loan applications. That would be fraud if you tried to apply for loans with the primary parties information, so DO NOT DO IT.
How Can I Buy a Tradeline for my Credit?
It is relatively easy to buy a seasoned tradeline these days, you simply go to one of the reputable websites that are offering them, research the tradelines available and purchase it.
How long does it take for my credit to improve?
Assuming you are not continuing to damage your credit and everything is being paid on time, adding this seasoned tradeline can have an impact in as little as 30 days, but you will see the real power of the benefit of the tradeline over 6 months.
The real secret is to make sure you pay your existing loans and work to improve your credit in every other possible way.
At the end of the day, seasoned tradelines are just a tool to accelerate improved credit, but you need to be taking the other steps necessary to do the same and you will see huge improvements.
