Adding Credit Tradelines To Qualify For Mortgage

Adding Credit Tradelines To Qualify For Mortgage

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss adding credit tradelines to qualify for mortgage by boosting credit scores. Many homebuyers go to their banks and other lenders to be told that they do not qualify for mortgage. This is  because they do not have three credit tradelines or their scores are not high enough to qualify for mortgage. Adding Credit Tradelines To Qualify For Mortgage is not required. Tradelines are not government and/or conventional mortgage guidelines.

Lenders May Require Number of Credit Tradelines as Part of their Lender Overlays

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They are overlays where some lenders may require such as a number of seasoned credit tradelines. Gustan Cho Associates is licensed in 48 states with over 160 wholesale lenders. Many wholesale lenders have no overlays on government and/or conventional loans. We do not require credit tradelines. Credit tradelines are very important. Most lenders require a certain amount of credit tradelines that have been seasoned for 12 to 24 months. Adding Credit Tradelines To Qualify For Mortgage is not a requirement under FHA, VA, USDA, Fannie Mae, Freddie Mac Guidelines.

What Are Credit Tradelines?

Credit tradelines are credit accounts that consumers have established from a creditor. Examples of tradelines are the following:

  • credit cars
  • student loans
  • automobile loans
  • mortgages
  • payday loans
  • personal lines of credit
  • other creditors and that creditor reports it to all three credit reporting agencies

Importance Of Traditional Credit Tradelines

When these creditors report account payment history to the credit bureaus, the credit bureaus will update payment history every month. It will be reported as being paid on time or not as well as the following information:

  • Original credit limit
  • Date Opened
  • Current balance
  • Payment history
  • Late payment history
  • Date of last activity

This information is then used by creditors such as lenders to determine credit risk by reviewing credit history and payment history from various creditors. The longer credit tradelines are the more secure potential new creditor. Prior payment history is a good indicator of future payment on the credit

Benefits of Adding Credit Tradelines To Qualify For Mortgage

Adding positive credit tradelines is an absolute must to get a solid credit score and make the mortgage approval process much smoother.

Adding Credit Tradelines To Qualify For Mortgage To Increase Scores

Adding Credit Tradelines To Qualify For Mortgage To Increase Scores

Apply for new credit accounts. Consumers who have descent credit may try applying for unsecured credit cards. Remember that every time someone applies for new credit they will get a hard credit inquiry reported on the credit report. Each hard credit inquiry can drop credit scores by 2 to 5 points so do not apply for a dozen credit cards all at the same time.

Adding Credit Tradelines To Qualify For Mortgage: Secured Credit Cards To Improve and Reestablish Credit

Applying one to three credit card applications will be ideal. The positive credit score improvement with new credit cards will offset the drop of the hard credit inquiry. A department store credit card, gas credit card, payday loans, automobile loans, and other credit where the creditor will report it to the three credit bureaus will help start developing credit tradelines. People with a prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, or have had recent bad credit should start re-establishing credit immediately by opening up three secured credit cards with a minimum of $500 credit limit.

Secured Credit Card Companies Will Extend Credit For Timely Paying Cardholders

Secured credit cards are the best tools in this planet to get new credit tradelines for those with prior bad credit. Each secured credit card will boost credit scores by at least 20 or more POINTS!!!! Credit unions, furniture stores, jewelry store, auto finance companies, gas stations, and pay day loans are some of the creditors with lighter credit requirements than unsecured credit cards. These creditors will be ideal places to apply for new credit tradelines for those who do not have strong credit or established credit tradelines.

Adding Credit Tradelines To Qualify For Mortgage But Creditors Not Reporting To Bureaus

Non-reporting credit tradelines. Not every creditor report credit to all three major credit bureaus:

If this is the case, consumers can request creditors and the three major credit bureaus to update credit file to reflect credit and payment history.

Adding Credit Tradelines To Qualify For Mortgage: NON-Traditional Credit Tradelines

Adding Credit Tradelines To Qualify For Mortgage: NON-Traditional Credit Tradelines

Nontraditional credit can be used as credit tradelines if reported to credit bureaus. Consumers can use nontraditional credit in lieu of traditional credit tradelines.

What Are Nontraditional Credit Tradelines?

What is nontraditional credit? Nontraditional credit is credit that consumers make regular payments but the creditor does not report it to the three major credit reporting agencies. Examples of nontraditional credit are the following:

  • Water bills
  • Electric bills
  • Gas bills, phone bills
  • Insurance bills
  • Rental payments
  • Lease payments
  • Cell phone bills

12 months of canceled checks are required for nontraditional credit tradelines to be valid and for the mortgage lender to be able to use it.

Qualifying For Mortgage With Direct Lender With No Overlays

Gustan Cho Associates is licensed in 48 states and has over 160 wholesale mortgage lenders. We have a reputation for having wholesale mortgage lenders with no overlays on government and conventional loans. Homebuyers who need to qualify for a mortgage with no credit tradelines can contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at

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