how a trade line works
a trade line is an important record keeping mechanism that tracks the activity of borrowers on their credit reports each credit account has its own trade line borrowers will have multiple trade lines on their credit report each representing the individual borrowing accounts for which they have been approved the basic types of accounts that have a trade line are those paid off in fixed installments and these accounts are often broken into categories first revolving trade lines are reported on credit cards or other lines of credit second installment trade lines report the history of car loans mortgages student loans and personal loans open accounts a third type of account on a trade line are often associated with businesses as opposed to individuals 