Credit bureaus often use the term credit trade line, which refers to the accounts reported on your credit report. They're important to you because they include details about your credit account, including what type of account it is and your history of payments.

What Are Credit Trade Lines?

A credit trade line is a notation on your credit report about a specific credit account you have. Each credit account you have will have a separate "trade line" on your credit report.

The information reported on each of your trade lines is critical to analyzing your credit report. You want to ensure the information here is accurate, and if not, you should take the steps necessary to dispute it.

There are three types of credit trade lines:

Revolving Credit Trade Lines

A revolving trade line is one in which you have a line of credit, which means you can borrow a set amount from it over and over again, up until that amount. Credit cards are a common type of revolving trade line. The available credit, the balance on your account, and the payment owed will change over time as you make payments or charges.

Installment Credit Trade Lines

An installment credit trade line is typically a one-time disbursement you agree to repay over time. Most of the time, these are accounts that you will use to purchase something with the promise to make a fixed payment each month to repay the debt. Some examples of these accounts include auto loans, mortgages, student loans, and personal loans. Each installment loan will have a separate trade line on your credit report.

Open Accounts

A third type of trade line is an open account. These are a loan often used in business transactions. They allow purchasing merchandise or something else of value that is then paid back over time. A company may have an open account, for example, with a vendor, to purchase inventory.

How to Monitor Credit Trade Lines

The information reported on a credit trade line factors into your credit score. Yet, the credit bureaus only report the information provided to them by lenders, and sometimes that information is not accurate. That's why you need to monitor these accounts independently to ensure accuracy.

The only way to see the information yourself is to get a copy of your credit report. Under federal law, you can get a free copy of your credit report once per year from each of the three credit bureaus. To do this, visit AnnualCreditReport.com. You will need to verify your information to gain access to this.

Here's a tip. Request your credit report from just one of the credit bureaus every four months. That means you can consistently look at your credit report over time.

If you see information that is not accurate, report it to the credit bureau. They must go back to the lender for proof that the debt is yours and that the payment history or other data is accurate. If the lender cannot or does not prove this, then the information is removed. You can dispute this on each of the credit bureau's websites.

When Can Trade Lines be Removed?

Trade lines may be removed from your credit report. Credit bureaus can report your trade lines the entire time they are open as long as the information is accurate and within the allowable credit reporting timeline. Existing accounts will remain on your credit report long-term with no removal.

If a trade line is closed, it will be removed based on the type of loan. This could be up to 7 years for most types of debts. Some types of debts, like bankruptcies and judgments against you, can remain on your report longer, up to 10 years.

You can add new trade lines to your credit report by opening new accounts if you are approved to do so. Keep in mind that you should keep your balances affordable to you. Having too many accounts with a balance can also impact your credit score.

Monitor your credit report on an ongoing basis. Be sure that you report any information that is not accurate to protect your credit score.