If you intend to secure a loan, mortgage or even apply for a new job, you must have a good credit rating. There are different components needed to boost your credit score and one of them is to have outstanding tradelines.

Tradelines, collectively known as credit history, display all your credit accounts with different lending institutions and retailers, maximum credit limit, date of opening your account, and the most recent status of your account. It sums up all your credit transactions to judge if you are worthy of getting any loans or jobs you applied for.

All tradelines start with application from a bank, store, or credit card company. After you filled up the required information, this file will be automatically forwarded to credit bureaus or agencies assigned to provide credit info of the borrowers. It does not matter if it is a car loan, mortgage, or secured credit card; all tradelines are compiled in one file often called credit report or credit score. Collectively, it will represent your credit reputation and willingness to settle obligations to all your lenders across industries. Given the significance of this report to you, you must choose carefully what tradelines to get and assess if you have capability to settle them.

Failure to manage your tradelines properly can result to poor or bad credit rating. The dire consequences you have to face include:

1. Lower chance of getting approval on your application for credit. Your credit score     serves as your reputation to different lenders. Your previous tradelines suffered so it is     safe to assume that you will likely do this same thing again. The usual reaction of     enders is to disapprove your loan or credit card application.

2. Higher interest rates. In some cases, some lenders will give you a chance to prove     you can handle your tradelines properly. As a protection, however, they will charge     you with higher interest rates. The higher the credit score, the lower interest rates     they will give.

It is very hard to regain your credit reputation once it is damaged. Many people took at least 3 to 5 years to get higher credit score. Your other alternative is to consult with a seasoned tradelines company. These tradelines companies promise help you boost your credit score within 30 to 60 days. What you need to do is simply shell out at least $700 to $2,000, depending on how bad your credit score is. This is called piggybacking because they will ask those people with good credit scores to make you an authorized user of their credit card. In doing so, you will temporarily enjoy the privileges given to them. Your loans will be approved immediately and you only need to pay low interest rates.

However, using seasoned tradelines is considered unethical by many credit rating agencies and even the Federal Trade Commission. In 2008, credit rating company Fair Isaac Company (FICO) plans not to consider authorized users status in their credit scoring. Nevertheless, it is technically legal to avail seasoned tradelines services if you really need it.