Buying a house is a big decision. It is one of the biggest and most important decisions you will ever make in life. But what if you don’t have the cash to pay for the property? Can tradelines help you buy a house? Can you afford to buy a home? Is your credit report in good shape, or do you need to first work on your credit score before applying for that mortgage? Find out the answers to these questions and more in this blog post.
According to a 2019 report from the Consumer Financial Protection Bureau, there are a total of 5,508 financial institutions in the United States. These institutions include banks, credit unions, savings associations, and nondepository mortgage lenders. When people think about purchasing a house, the popular go-to would be mortgage companies. No wonder why there are over 300 million mortgage originations and more than 200 million refinance originations in the country as of the same year.
When applying for a home loan, it is essential to know that banks and mortgage companies usually prefer those with a good credit score. As part of the mortgage process, the lender will look into your credit report from credit reporting agencies to see and assess your credit history and eligibility for the loan. This process makes sense because companies need to make sure that the borrower can pay off the debt. But what if you don’t have credit accounts? If you are still building credit scores? Will tradelines help make the process faster? Learn more in the following sections.
What Is A Tradeline?
Tradelines are a vital part of credit reporting and refers to an individual account listing in one’s credit report. There are different types of credit tradelines. It would be helpful to know your options, especially if you’re working on building or maintaining a positive credit profile. In this case, to buy a house.
Qualities of a Good Tradeline
Every credit card account comes with a line of credit, which can be extended to an authorized user. In the tradeline industry, credit cards fall under what we call “revolving accounts.” They are called revolving because the available credcredit limit, balance, and payment due changes as you make payments and purchases.
Any primary credit card account holder can sell a tradeline. In the same way, anyone with bad credit or no credit can buy tradelines from tradeline companies to help build a better credit profile. If you are the latter, it is essential to know that buying tradelines can either affect your credit score in a positive way or otherwise. That is why it is important to know the right tradeline to buy.
Many experts say that buying tradelines based on age, credit limit, and quantity are significant factors to help improve your credit profile. While it may be true, the best qualities to look for in a tradeline are the ones that would be beneficial to improve your credit score. We are trying to identify the cause of your problem first, so you know how to address it adequately. It would be easier to shortlist tradelines and choose when you know what you need.
Tradelines for Sale
Tradelines for sale refers to accounts paid so you can be added as an authorized user. This is popular among consumers who aim to increase credit scores to make a loan. Although some find tradelines as an act of committing bank fraud, it is not. That is, of course, if you only deal with authorized tradelines.
The tradeline industry is multiplying. While it does have its benefits, there are downsides to it as well. It’s beneficial because tradelines for sale provide consumers with options in building a good credit score. Meanwhile, its downsides include the emergence of shotty businesses trying to mimic the ones established by legit tradeline companies.
What Is An Authorized User Tradeline?
Credit lines are often extended to more than just the person in question. Even if you don’t have your own secured credit card from a credit card company, but someone who does is willing to add you as an authorized user on their line, that could improve your chances of getting approved for new financial opportunities down the road!
Authorized users can usually get added to any existing accounts for free. That is if you have a family member or friend who has good credit scores and is willing to add you as a tradeline. Otherwise, you can avail of a tradeline for sale from a third-party service. Authorized users are only given access to view statements and pay bills online, though (or even use cash advances). They won’t get full privileges like having another credit card with different spending limits than theirs. It’s important to keep that in mind before agreeing to be added on as an authorized user because even if you’re trying to build up a credit history for yourself, it can backfire.
There are several tradeline options that all have their benefits and drawbacks depending on what the borrower needs from them at any given time. Having one can significantly affect your credit standing. Not having one, though, could impede future financial opportunities down the road too. Thus, it is essential to know exactly what works for you before making a decision. Check with your financial services provider for more information about the tradelines they offer and how it can benefit you before purchasing anything.
What Are Tradelines Used For?
Tradelines are primarily used to calculate one’s credit score. Since credit scores alone are not enough to assess your creditworthiness, lenders also look into the tradelines in your credit report to get more information. Tradelines include relevant information. This includes:
- Personal Information
- Account Type
- Partial or Scrambled Account Number
- Current Balance
- Original Loan Amount or Total Credit Limit
- Account Responsibility
- Payment Status
- Minimum Monthly Payment
- Date The Account Was Opened
- Date of Last Activity
- Date The Account Was Closed
- Payment History
- Name and Address of the Lender
How Do Tradelines Affect Your Credit Report?
A credit report is a statement prepared by a credit bureau that has information about your credit activity and current credit status. It shows your credit account and payment history, too—basically, anything a lender needs to know about your credit history. Credit bureaus prepare a credit report, a data collection agency responsible for gathering account information and providing it to a consumer reporting agency.
Moving on, as mentioned in the prior section, tradelines are used in calculating your credit score. To simply put it, tradeline is a term that the industry uses referring to an account on a credit report. Credit bureaus use tradelines for a more thorough reporting about the credit history of a credit card issuer. When you develop good credit habits, you’ll have positive credit reports all the time. This enables the easier processing of a loan application.
How Much Do Tradelines Increase Your Credit Score?
Generally, a tradeline can help improve your credit score. Having good tradelines will help you achieve a 750 or higher credit score. Having good credit scores means reaping all the benefits that come with it, including approval of a home loan or having a new credit opportunity. Since tradelines positively affect your credit scoring, it helps you avoid credit risk in the lender’s eyes and therefore increases your credit score.
Can Tradelines Help You Buy A Home?
Your overall financial health is key to buying your own home. It’s no secret that owning a house in the United States is expensive. Thus, mortgages are prevalent. Unfortunately, having bad credit history will decrease your chances for a loan. Excellent credit, rather, exceptional credit history is a sure way of approval for a student loan, auto loan, and in this case, a home loan.
Meanwhile, tradelines play an essential role in increasing your credit score. More so, in the approval of certain types of home loans, including:
Federal Housing Administration or FHA loans
FHA loans require two lines of credit for qualified loan applicants. To be eligible for the low down payment advantage, FHA loan applicants are now required to have at least a 580 FICO score. As of this writing, the low down payment advantage is at 3.5 percent. While FHA does not have a minimum monthly income requirement, it does have rules for the debt-to-income ratio.
Conventional Loans
A conventional loan refers to a home loan that any government agency does not support. To quality for conventional loans, you need to have one more trade line for a total of three. Unlike FHA loans, you need to have at least a 620 FICO score to qualify. Meanwhile, borrowers with a 720-850 credit score are qualified to make lower down payments. They also get the most attractive loan rates.
Why Choose Coast Tradelines?
Coast Tradelines is a tradeline company located in the United States. We are a premier fintech platform exclusively designed for the tradelines industry. While there are several tradeline companies to choose from, what makes us a top choice are the following:
A Professional Tradeline Expert
We have a high level of knowledge and skills to provide you with the best tradeline services possible. With us, you can be confident of your and your money’s safety.
High Credit Limit Tradelines
Our company offers tradelines with high credit limits. Buying such tradelines will provide you flexibility at the same time, allowing you to make major purchases, which essentially could affect your credit scoring in the future.
A Wide Variety of Tradelines and Tradeline Packages
We offer a comprehensive list of tradelines and packages to choose from. You can select the tradeline or package of your choice depending on your need and preferences. Head on to our Tradelines page to know more.
Free Consultation
Making financial decisions is very tricky. That is why our company offers free consultation services. Our tradeline experts provide financial advice for free. All you need to do is contact us via phone call or through the form on the Contact Us page.
Reliable Customer Support
We have a reliable customer support team. If you have questions regarding our products and services, call us or send us a message via the contact form.
The Takeaway
Tradeline plays an essential role in one’s credit report. Tradelines have their share of advantages and disadvantages. But, with the right financial direction and teaming up with a trusted company like us at Coast Tradelines, it can be very beneficial. A positive tradeline, which can lead to a high credit score, can help increase your chances for a mortgage loan. Thus, allowing you to purchase your dream home.
