The secret to using tradelines effectively is buying “seasoned” tradelines, which are tradelines that have significant age (generally at least two years). We estimate that as much as 90% of the power of a tradeline has to do with its age. However, just looking at the age of an individual tradeline alone is also not the correct way to shop for a tradeline.
The power of a tradeline will always be relative to what is already in someone’s credit report.
Therefore, the most effective way to choose a tradeline is to look at how the new tradeline will affect a person’s average age of accounts.
This is the secret key to unlocking the power of a tradeline. This factor alone is the most significant aspect of how tradelines work.
We have identified several possible age tiers of special significance, especially with respect to one’s average age of accounts. These special age tiers are:
Therefore, if someone has an average age of accounts of 1.5 years, then the next target would be to pass the 2-year mark with their average age of accounts. Similarly, if someone has an average age of accounts of 3 years, the next target would be to get their average age of accounts past 5 years, and so on.
Often people make the mistake of only looking at the age of a tradeline by itself and not taking into account how the tradeline will affect their average age of accounts.
For example, if someone determines that their average age of accounts is 5 years, they might conclude that any tradeline over 5 years old is what they need, so they might choose a tradeline that is 7 years old.
However, by only adding a 7-year-old tradeline, they would have only increased their average age of accounts from 5 years to 5.2 years, which obviously is not a significant change and certainly does not get their average age of accounts up to the next age tier.
To make this easy, we have created a Tradeline Calculator, which helps you quickly calculate your average age of accounts, and demonstrates how a new tradeline may affect this powerful variable.
Using our Tradeline Calculator to determine your average age of accounts will help guide you in choosing the best tradelines for your particular situation.