Credit Tradelines

Many mortgage lenders require credit tradelines from its mortgage loan borrowers.  Credit tradelines are credit accounts the mortgage borrower has active.  Credit card accounts, automobile loans, student loans, and department store revolving credit cards are all credit tradelines.  Depending on the mortgage lender, many require that in order to count as active credit tradelines, the account must have been active and in good standing for at least 12 months.  Just opening up three credit card accounts right away will not count as three credit tradelines.  Again, a twelve month seasoning requirement is mandatory.  Yet,  there are some mortgage lenders who require a minimum of 24 months in seasoning requirements for it to count as a credit tradeline.

If I Have No Credit Tradelines Seasoned For At Least A Year, Could I Still Qualify For A Residential Mortgage Loan

The answer to the above question is yes.  There are many wholesale mortgage lenders who welcome mortgage loan applicants with no seasoned credit tradelines.  However, they do require nontraditional credit tradelines.  Most of the will require three nontraditional credit tradelines.  Many folks who do not have credit tradelines also do not have credit scores.  Even if you have no credit scores, you can still qualify for a residential mortgage loan as long as you have at least three nontraditional credit tradelines.

What Are Nontraditional Credit Tradelines?

Nontraditional credit tradelines are credit accounts that do not report to the three credit reporting agencies.  Cell phone accounts, phone bill accounts, cable television accounts, utitlity accounts, insurance accounts, and rental verification are all examples of nontraditional credit tradelines.  Rental verification is probably the strongest and most important nontraditional credit tradelines with the most weight.  Make sure that when you make your monthly rental payment that you pay it with a check so you can document rental verification.  Cash payment does not count as rental verification even though you might have a receipt from the landlord.

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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