Tradelines and Credit Score Maintenance
Tradelines will stay on your report as long as they remain active. When you close an account, it can take 7-10 years for the activity to get removed. Tradelines showing negative history usually get removed in seven years, while tradelines with positive history take ten years to disappear from your credit report.
What Are Tradelines?
Tradelines refer to the accounts listed on your credit report that detail your borrowing history. These could include credit cards, loans, or mortgages. The presence of positive tradelines such as timely payments and low balances can enhance your creditworthiness. On the other hand, negative tradelines like late payments or defaults can lower your credit score and make it harder for you to obtain new credit.
Tradelines and Credit Score Enhancement
Adding a new tradeline could increase or decrease your score depending on your credit. Say you open a new revolving tradeline (credit card). When you close an account in good standing, the tradeline will usually stay on your for ten years. However, it is up to each reporting agency to decide how long tradelines are maintained. When an account is closed in bad standing, it will stay on your for seven years. There are exceptions – negative tradelines might remain for ten years if resolved via certain bankruptcy types.