Tradelines comparison: what to keep and what to drop

Six things get sold to business owners under the word tradeline. They are not variations on one product. A net-30 account with Uline and a purchased position on a stranger's Visa have almost nothing in common except the word.

Here is each one by name, what it is, and whether it belongs in your file.

What to take away

The keep list, by name

Uline net-30. Office, shipping and packaging supplies on invoice terms, with a credit line that grows as you pay on time. Reports to Dun & Bradstreet, which is what moves PAYDEX. Suits any business that buys boxes and tape anyway.

Quill net-30. Office supplies, same shape as Uline, reports to D&B and often to Experian Business. Suits a business with a small recurring supply spend.

The Home Depot Commercial Account. Net-30 or net-55 terms at the pro desk, with a revolving option on larger lines. Reports to the business bureaus. Suits trades and anyone buying materials on a job-by-job basis.

Shell and Chevron business fuel cards. Fuel and maintenance on a card tied to the business EIN, with per-driver controls. Reports to D&B and Experian Business. Suits fleets and anyone with drivers on the road.

The Amex Business Platinum and Chase Ink Business cards. Revolving or charge accounts under the EIN, with the limit reported against the balance. Suits businesses that can clear the balance monthly, because carrying costs are the tradeoff.

A secured business card, such as the Wells Fargo Business Secured Card. A cash deposit sets the limit. Reports to the business bureaus and, depending on the issuer, to the personal ones. Suits a thin file that needs to start somewhere, and the deposit arithmetic is in secured business credit.

Equipment finance and leases. The lender holds an interest in the machine itself. Cheaper than an unsecured line when the asset is the collateral, and the SBA's guide to buying assets and equipment walks through the decision.

The drop list, by name

Purchased tradelines. A stranger's seasoned account with you added as an authorized user. You did not spend the money, you cannot see the statements, and the seller can remove you without notice. Lenders treat it as manipulation of the record, and the FTC's credit, loans and debt material explains why a record you did not create is a liability.

Authorized-user slots on a personal card. Your name goes on someone's consumer account. It builds their record, not your business file, and the distinction is covered in credit cards.

Any account whose reporting you have not confirmed. A vendor that does not report is a payment, not a tradeline.

A worked comparison

Take two owners buying the same 4,000 dollars of packaging a year.

Owner A's file shows behavior. Owner B's file shows a claim. Only one of those is checkable.

How to check before you commit

The full requirements list sits in tradelines requirements. What each bureau does with the data is in credit bureaus.

Common questions

Which of these builds a file fastest?

None of them, by product type. Speed is set by the creditor's reporting cadence, which is why step two above matters more than the account you pick. Choose the one you would use anyway, from the ones that report.

Can I run several at once?

Yes. A mixed record with a fuel card, a supply account and a revolving line reads as more informative than a single line. That is not a reason to open accounts you have no use for.

Is a personal card used for business purchases on this list?

No. It is a personal account with business spending on it. It can build a personal record while leaving the business file untouched.

Where do I start if my file is empty?

One net-30 account you will use, paid early for three cycles. The SBA's funding your business guide covers the borrowing side, and vendor accounts covers how terms are priced.