What Are Credit Tradelines Requirements?

Credit Tradelines Requirements

Gustan Cho Associates

Credit tradelines requirements are individual creditors that is reporting your credit history on your credit report.  For example, if you have a Blue Sky Visa secured credit card, Blue Sky will be posting your credit history on your credit report.  Most creditors post to all three giant credit reporting agencies, which are Transunion, Experian, and Equifax. The credit grantor will post your credit limit, your credit balance, your minimum monthly payment, and your payment history.  The more credit tradelines you have, the better your credit profile is. One late payment on your credit tradeline will hurt your credit scores. There are no credit tradelines requirements on the number of credit tradeline for a mortgage loan borrower to have to qualify for a mortgage loan, but many mortgage lenders will have overlays and require at least three to four credit tradelines requirements that have been seasoned for 12 to 24 months.

Do Mortgage Lenders Require Minimum Credit Tradelines Requirements?

Yes.  Mortgage lenders do have minimum credit tradeline requirements.  Most mortgage lenders require a minimum of 3 credit tradelines requirements. There are numerous mortgage lenders that will require 4 credit tradeline. Others have higher credit tradeline requirements.

Do Lenders Require Credit Tradelines Requirements?

Besides having minimum credit trade line requirements, mortgage lenders also have credit tradeline seasoning requirements.  The majority of mortgage lenders require that you have at least one year’s worth of seasoning for each credit tradelines.  For example, if you recently got a Visa credit card and had it for six months, that would not count towards their credit tradeline requirement.  They require that you have the credit for at least a year without any late payments.  Mortgage lenders rate your risk level by reviewing your credit tradeline for the past year.

What If I Do Hot Have Three Credit Tradeline That Have Been Seasoned For A Year? Would I Still Qualify For Mortgage?

If you do not have 3 credit tradelines that have been seasoned for a year, there is still hope. I have mortgage lenders who will make exceptions if other aspects of your credit profile are strong and you have compensating factors.  Compensating factors are positive factors like you having a savings or securities account or having an established retirement account such as IRA’s and/or 401k accounts.

Non-Traditional Credit Tradeline

To substitute credit tradeline, we can use rental verification or non traditional credit tradeline such as cellular phone bill payment history, or utilities payment histories as long as it can be documented via cancelled checks or bank statements.

Whenever you make rental payments or other monthly payments, please pay them by check so it can always be tracked and verified. Cash payment is non existent in the mortgage world. Mortgage lenders will always want to see cancelled checks as proof of payment.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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