In the event of a decrease in credit score when a Boom Tradeline is added, it is important to understand that fluctuations in credit scores are not uncommon when a new tradeline is introduced. Factors such as credit utilization, average age of accounts, credit mix, and more can potentially contribute to a temporary decrease in credit score. Credit scoring models are complex, and the impact of a new tradeline can vary based on individual credit profiles.
When a new tradeline is added with an average age less than your existing tradelines, this will decrease the average age of accounts, which may result in a temporary decrease. However, as the tradeline ages and more rental payments are added, there should be a net positive impact to credit scores.
However, we want to emphasize that we have added a positive tradeline to your report, and with continued reporting, we anticipate a more significant impact to your rental tradeline. Boom does not report negative credit events to the credit bureaus.