No credit tradelines cause for poor credit scores
Many times people wonder why their credit scores are so low when they pay all of their bills on time and are responsible on their finances. A perfect example was a mortgage loan borrower who called me the other day because she could not qualify for a mortgage loan from her local bank because her median credit score was 560. She just could not understand why her credit scores were low and she thought about hiring a credit repair company to repair her credit and increase her score. Problem with hiring a credit repair company is that she has no credit to repair.
No credit is almost same as poor credit
I ran her credit and have seen a few bad credit items that was charged off several years ago which should have no bearing on her current credit scores. She did not have any collections, and the date of the last activity on her credit report was from 2007. The problem I see in cases like these is that the mortgage loan borrower has no credit. No credit can definitely decrease your credit scores even though you pay all of your other bills on time. Low credit scores can be reasons for denials for mortgages, automobile loans, and other installment loans.
Most mortgage lenders want to see a minimum of three credit tradelines that has been seasoned at least one year before they will qualify a mortgage loan borrower for a mortgage loan. I specialize in helping mortgage loan borrowers with prior bad credit and I can help those folks who do not have 3 traditional credit tradelines that has been seasoned for a year.
Credit tradelines required for mortgage qualification
Mortgage lenders that do not require 3 credit tradelines will require non traditional tradelines such as rent payments, cellular phone bill payments, and other monthly payments that the creditor does not report on the credit bureaus. It is extremely important that when you pay your monthly rent, that you pay it with a check because the lender will require copies of cancelled checks to verify that you have made your monthly rent payment on time. Same goes with paying all of your other bills like you utilities, cell phone bills, and cable television bills.
If you want to buy a home and are looking to qualify for a mortgage and your credit scores are below 600 because you do not have credit, I can definitely help you. Contact me at www.gustancho.com and lets see what type of mortgage loan program I can offer you. I will also help you in boosting your credit scores and help you in reestablishing your credit.
Gustan Cho NMLS ID 873293