Is ending a tradeline good for your credit score?

Credit scores and credit reports can impact nearly every aspect of our financial life. Naturally, we want to achieve the best score and report possible to order to obtain lower interest rates, have access to the best services, be competitive for the best housing, etc. Thankfully the credit reporting industry has become much easier to access. Today we can see our score and report on demand.

After reviewing their credit report, many consumers make the mistake of asking for accounts to be closed or stop reporting. They believe that having the account on their report is lowering their score. However, the opposite is usually the case. If the account in question has a positive payment history, closing, or stopping reporting, on that account will likely lower one’s credit score. Many find this out the hard way.

At Sperlonga, we specialize in credit reporting non-traditional tradelines in order to help people build credit and help account managers ensure on time payments. We always say “No one has to be reported negatively”. Any account owner can request a payment plan arrangement with their account manager. To date, all of our data furnishers have honored those requests.  Once on a payment plan, accounts are reported as current, paying as agreed, even though they carry a balance.

This is a far superior option to ending reporting. Accounts that stop reporting while in a negative status will not be updated and they will continue to negatively impact the account owner’s credit score until reporting resumes. Account owners who go on a payment plan and continue to report will actually see an increase in their credit score. In turn, they will be in a better financial position to continue on that payment plan and get that account balance paid off.

Sperlonga’s goal is to make credit reporting a win-win for everyone. Contact us today to learn more about credit reporting your managed accounts.