It seems counterintuitive, but if done correctly, adding more debt can actually improve your credit score. The same can happen when negative information comes off your credit report. That, of course, seems more obvious.
Combined with a slow, methodical approach, both of these tactics did the trick for CredEvolv client Laura H.!
Laura came to the CredEvolv platform with 609 credit score. She established two new tradelines while her credit counselor coached her on how to use them. Her counselor also had several negative accounts removed from her credit report. Laura stuck with her success plan for 13 months and voila! She achieved a 699 credit score and her lender submitted her home loan application to underwriting.
What is a tradeline on a credit report?
A tradeline is an industry term for a credit account that a lender reports to a credit bureau. Each credit account has its own tradeline, which includes information about the account, the creditor, and the type of credit, such as the account balance, payment history, and account status.
A person can have multiple tradelines on their credit report, one for each credit account in their name. Credit bureaus use tradelines to calculate a borrower’s credit score and assess their creditworthiness. Adding tradelines can have a positive effect on your credit score by way of improved credit history, payment history, credit utilization, and more.
What can and can’t be removed from my credit report?
As we discussed in one of our Credit Education blogs, it’s important to know what can legally come off your credit report and what must remain. Here’s the truth: Better credit is not about erasing your financial past. It’s about correcting inaccuracies and improving your credit going forward.
There’s a lot of misinformation out there. Some so-called credit repair companies claim they can remove all derogatory information from your credit report. But this simply isn’t true. In fact, it’s illegal to remove accurate information, even if it’s negative.
Under the Fair Credit Reporting Act (FCRA), credit reporting agencies are required to report accurate, verifiable information. If you missed a payment or defaulted on a loan, for instance, that information can legally stay on your report for up to seven years. Bankruptcies can remain for up to 10 years.
At CredEvolv, we want to set the record straight: no one can legally remove accurate, negative information from your credit report. What the certified, nonprofit counselors on our platform can do, however, is help you dispute any inaccuracies or outdated information that may be hurting your score unfairly. They are trained to spot errors and unfair practices on your report.
This gives you the best chance of improving your credit by removing anything that doesn’t belong – and making progress toward a mortgage like Laura did!
Read more credit success stories here!