Tradelines Before Buying a House: What Mortgage Applicants Should Know
If you’re getting ready to buy a home, every point of your credit score counts. Here’s what to know before adding an authorized user tradeline ahead of a mortgage.
How mortgage lenders look at your credit
Most mortgage lenders pull scores from all three bureaus and use your middle score. Authorized user accounts are generally included in those scores.
Where it gets more complicated
Some loan programs and manual underwriting may discount authorized user accounts, especially if the AU account is a big part of your credit file or the lender is evaluating your own payment history. Policies differ by lender and loan type.
Timing tips
- Add the tradeline early. Give it time to post before your lender pulls credit, ideally a couple of reporting cycles.
- Don’t open new accounts right before applying.
- Pay down your own cards so your utilization is low on your own accounts too.
Ask your loan officer
Before you add a tradeline, ask: “How do you treat authorized user accounts for my loan program?” A good loan officer will give you a straight answer.
Fix errors first
A tradeline can’t hide a collection or an incorrect late payment. If your reports have errors, dispute them first. Then use a tradeline to add positive history.
