What Is a Tradeline?
The word tradeline or trade lines as it is many times referred to is a word used in the credit and lending industries. It refers to credit accounts such credit cards, installment loans, mortgages or any other account that reports to the credit bureau agencies. The tradeline as listed on the credit report will have several pieces of information that a lender will look at and may want to know when reviewing your file. This is especially true if they are trying to determine if you are to be extended a loan.
The items usually listed on a tradeline are as follows
- Name of the lender or creditor
- Partial loan or account number
- Account type – is it a mortgage, credit card, installment, collection, etc.
- Responsibility – is the borrower responsible for the loan or are they an authorized user
- Current Payment Status – is the borrower on time? or late?, have they been on time in the past?
- Various important dates – date opened, date reported, date of last activity
- Limits – what is the cardholders credit limit?
- Balances – what is the current balance?
- Terms – What is the monthly payment?
- Comments – placeholder for client comments or other notes