How many tradeline do I need to buy a house?
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We all know that in order to obtain financial benefits, such as loans or even buy a house you need to have good credit.
If you are going to take the time to do this, take the time to do it right. The investment you make in real estate will be yours for years to come. Following the steps to great credit doesn’t mean years of commitment. Even small improvements in your credit are worth more than time.
Although there are differences of opinion regarding certain steps in the credit process, you can always count on the same basic procedures.
And the first thing you should do is get your credit report, even if you’ve already exhausted your three free credit reports for the year, get a recent copy of your credit before you go to mortgage lenders for a home loan.
Your last credit report should be no more than three months prior to your visits to the bank. If you know you have delinquent items on your credit report, you will need at least six months to optimize your credit.
One of the biggest mistakes that a large number of people make is to go to a bank or company seeking service blindly, with no idea what state their credit report or credit history is in.
Even if you know that your credit is perfect from your point of view, do not trust and ask for a recent copy of your credit report. This step is very necessary as the credit rating agencies may accidentally post incorrect information on your credit. If you are not cautious, you will ultimately be the one who suffers the consequences of this mistake.
Check your number of tradelines.
A tradeline means you have an open line of credit that has been active for the last 1 to 2 years. If you are looking for a loan, you will need at least two open tradelines and it is recommended that they be quality tradelines.
Conventional loans require you to have one more commercial line for a total of three. Why do financial institutions like to see that you have other open lines of credit? Real estate is such a large investment that banks can’t be sure you are going to honor your credit unless you have proof of doing just that.
If you have more CPN Friendly Tradelines on your credit report, then you meet the minimum requirements. This does not mean you have optimized your credit. Check your total credit limit, that is, the total amount of money your credit lines say you can borrow.
Make sure your new tradelines come from a major credit card, one that has a Mastercard or Visa logo in the corner of the card.
