Updated: July 28, 2021
Well, it depends what kind of funding, but… generally, the answer is no: You cannot be approved for loans with only authorized user tradelines on your file. There are a few reasons why:
Underwriting procedures outweigh mere credit scores.
Suppose we added three relevant tradelines to your credit report, your scores shot up to the 800s and you walk into a bank and submit an application for a mortgage. The bank would be foolish to issue a loan on that basis, alone. For example, do you have a job? That is, can you pay back the loan? In other words, you cannot pay back a loan with a good credit score. Therefore, most banks won’t lend to those with only a good credit score. There are exceptions to this rule, actually. For example, FHA has no tradeline requirement, whatsoever.
Generally, though, credit approvals require more than good credit scores. Nevertheless, if you have the underwriting requirements, you’re going to have access to better loan and funding products with a good credit score (from adding positive tradelines) than if you did not. You’ll also likely reduce your interest rates.
Primary tradelines are often required.
In addition to the underwriting stuff above, there is a “two tradeline minimum” for a mortgage. In this case, authorized user tradelines do not satisfy this requirement. So, unless you have two of your own (or “primary”) tradelines, adding authorized user accounts to increase your credit score is useless for securing that mortgage. This is why some tradeline companies lie to you and advertise: “we have primary tradelines for sale.” They don’t. No one does.
Lenders are smart and balance the issues well.
You’re not going to load up a credit report and walk away with cash… it’s isn’t going to happen. If you have a legitimate need, ability to repay, with collateral and you have a reasonable amount authorized user accounts to boost your credit scores, you’ll be fine. Here are Fannie Mae’s underwriting guidelines for authorized user tradelines:
As you can see, they use their brain, and – so long as you’re not abusing the process – they will determine that “the [authorized user] information reported on the credit report is an accurate reflection of the borrower’s credit history.”
So, there are many seasoned tradelines for sale, but the idea of seasoned “primary” tradelines is nonsense (and impossible, by the way). You can get trade lines free by asking a friend or family member to add you as an authorized user. If you want professionals to help you with it, then give us a call.
Matias is a serial entrepreneur and CEO of many companies that help people. He owns Superior Tradelines, LLC, which is one of the oldest and most reliable tradeline companies in the country.