Check out the steps below to understand how our tradeline calculator works-
- Take a copy of your recent credit report and identify revolving accounts, which are generally credit card accounts.
- For this calculation, do not use any other account types, such as loans, mortgages, etc.
- Figure out the credit age and express it in numbers and years. For instance, a tradeline that is 2 years 6 months old will have an age of 2.6 years. Enter this number under the “Age of Card” column in the calculator. You can do this for all the different revolving accounts you have on your report.
- The “Age of Card” column is followed by “Credit Limit,” where you should enter the credit limit of each revolving account.
- The “Amount Owed” column is where you will enter the amount you owe against every account.
- It is optional to fill the first “Card Description” column.
The calculator will then automatically calculate the “Individual Utilization Ratio” for every account.
Once you’ve entered the details of all the different revolving accounts on your credit report, you can then add hypothetical details into the calculator to figure out how purchasing tradelines can impact the results.