How to Add Credit Lines to Your Credit Report

Each record of debt that appears within your credit report is called a "trade line". A trade line contains all important information about the debt such as the type of debt it is, how much you owe, the company making the report, and the payment history on the account. The trade line of each debt on your credit report must also reflect the contact information for the company reporting it. There are two types of trade lines that consumers may add to their credit reports: revolving debt, such as credit cards, and installment debt, such as loans. Because the types of debt you carry have a 10% effect on your credit score, adding trade lines can potentially be beneficial to you by creating a balance of debt and boosting your score. Carrying different types of debt also benefits you by making you appear well rounded to future lenders.

Instructions

1

Pull your credit reports from the credit bureaus, Experian, Equifax, and TransUnion. Not all creditors report to all three credit bureaus. By pulling all three of your credit reports you know which credit reports require new trade lines and which do not.

2

Review your credit reports for both revolving and installment debt. You can comfortably have up to five revolving trade lines for each installment trade line.

3

Contact any companies with which you currently have a positive debt record and ask if they are able to report your payment history to the credit bureaus. Not all companies are able to do this, but of those that are, some may be willing to oblige you. A positive trade line being added to your credit history is good for your credit score whether or not it helps your debt balance.

4

Apply for a credit card if you lack revolving debt. Only apply for one card at a time and only if you are reasonably certain your application will be approved.

5

Charge a balance on your credit card and make regular payments on that balance every month. This will cause a trade line and payment history to appear on your credit report. If you do not use the card, you may not receive a trade line at all since some credit card companies do not report accounts to the credit bureaus until the card is used.

6

Apply for a personal loan if you lack installment debt. Explain to your lender that your goal is to add a trade line to your report. This can sometimes help pave the way for loan approval if you do not have an extensive credit history. Borrowing against funds you already have in the bank will also increase your chances for approval. Installment loan trade lines will appear on your credit report within 30 days after you are approved.

7

Monitor your credit reports to be certain your new trade lines are reporting properly. If a new account does not appear on your credit history within 60 days, call the company and report the oversight.