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slants
4274 Posts |
 Posted - 06/03/2008 : 6:27:49 PM
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| A prospective co-borrower is an immigrant who has lived here for 15 years but does not use credit whatsoever and has no credit history and no credit scores to speak of. He has been advised that if his girlfriend adds him to her tradelines as a joint account holder (not just authorized user), they would be reported as seasoned tradelines and provide a credit profile and credit scores for him. I don't believe her entire payment history will transfer to his profile. Will they show up as newly opened accounts on his credit report? Can any credit experts confirm if this is true? |
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darkstar
18289 Posts |
Posted - 06/03/2008 : 6:44:28 PM
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| Did/does he rent?...If so, I can help, send him here www.wereportrent.com :-) |
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slants
4274 Posts |
Posted - 06/03/2008 : 6:56:03 PM
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| All accounts are in the girlfriend's name - apartment lease, auto, utilities, cable, cell. I thought about the rental rating thing, but I can't even show directly that he makes the payments since she makes all payments (I think she writes checks out of their joint bank account). Even if rent is rated, I doubt one tradeline will be of much use for qualifying. |
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slants
4274 Posts |
Posted - 06/04/2008 : 08:34:50 AM
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| Any credit experts? |
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jason3974
287 Posts |
Posted - 06/04/2008 : 08:55:53 AM
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| My wife had a B of A credit card for 10 years before she added me to the account. When I checked my credit, it showed up that I had had the account open for 10 years. Not sure if this helps. |
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slants
4274 Posts |
Posted - 06/04/2008 : 08:58:49 AM
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| Yes. Immensely. Thank you! |
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Scrooge McDuck
8837 Posts |
Posted - 06/04/2008 : 09:16:25 AM
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it works. you get the whole tradeline. life is good.
there are people that charge for that stuff. lease out their seasoned tradeline to get people good credit. it only becomes tricky when people get a credit card that has been open longer then they are old. people were writing all about this on the BO this time last year. |
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CreditTechnologi
502 Posts |
Posted - 06/04/2008 : 09:24:08 AM
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Although it depends on the individual creditor, typically the tradeline will show history back to the date the account was opened.
A few considerations,
- Be careful, occasionally we'll see creditors that by default will close the individual account and create a NEW joint account - From a FICO perspective, this would hurt both individuals.
- It will take a while for the tradeline to appear on your applicant's file. Rescoring is not an option here as the original creditor has to initially report the account.
- The co-borrower will likely have to qualify for the account; this will include a new revolving inquiry on their file. Depending on how many other recent revolving or finance account inquiries exist - this could negatively impact his FICO score.
Assuming no other negative tradeline items exist, this single tradeline should be sufficient to produce a FICO score. All that's required is a tradeline that was opened at least 6 months ago and updated within the past 6 months.
Good Luck.
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slants
4274 Posts |
Posted - 06/04/2008 : 09:30:51 AM
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quote:
Originally posted by CreditTechnologies
Although it depends on the individual creditor, typically the tradeline will show history back to the date the account was opened.
A few considerations,
- Be careful, occasionally we'll see creditors that by default will close the individual account and create a NEW joint account - From a FICO perspective, this would hurt both individuals.
- It will take a while for the tradeline to appear on your applicant's file. Rescoring is not an option here as the original creditor has to initially report the account.
- The co-borrower will likely have to qualify for the account; this will include a new revolving inquiry on their file. Depending on how many other recent revolving or finance account inquiries exist - this could negatively impact his FICO score.
Assuming no other negative tradeline items exist, this single tradeline should be sufficient to produce a FICO score. All that's required is a tradeline that was opened at least 6 months ago and updated within the past 6 months.
Good Luck.
Thank you sooo much for taking the time to post this valuable information! |
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slants
4274 Posts |
Posted - 06/04/2008 : 09:31:41 AM
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quote:
Originally posted by Scrooge McDuck
it works. you get the whole tradeline. life is good.
there are people that charge for that stuff. lease out their seasoned tradeline to get people good credit. it only becomes tricky when people get a credit card that has been open longer then they are old. people were writing all about this on the BO this time last year.
Good to know. Thank you. |
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SoCalRay
2698 Posts |
Posted - 06/04/2008 : 09:57:30 AM
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The New FICO system will not count established accounts towards an authorized user's score
Read up on this. Being implemented this month
http://www.mortgagenewsdaily.com/172008_FICO_08.asp
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slants
4274 Posts |
Posted - 06/04/2008 : 10:04:54 AM
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quote:
Originally posted by SoCalRay
The New FICO system will not count established accounts towards an authorized user's score
Read up on this. Being implemented this month
http://www.mortgagenewsdaily.com/172008_FICO_08.asp
Yes, that is true of authorized users, but he will not be added as an authorized user only, but will be a joint account holder who will qualify to be added to the account (will have to find out if he is even eligible). |
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SoCalRay
2698 Posts |
Posted - 06/04/2008 : 10:07:30 AM
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| Part of the new system will not give the new user any credit for a certain time frame. I sat thru a conference call on it a few months back and can not remember the amount of time they have to be on the account before it gives them credit. |
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slants
4274 Posts |
Posted - 06/04/2008 : 10:18:58 AM
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quote:
Originally posted by SoCalRay
Part of the new system will not give the new user any credit for a certain time frame. I sat thru a conference call on it a few months back and can not remember the amount of time they have to be on the account before it gives them credit.
I was worried about somthing like that. Guess the only way to find out is to pursue it and see the results. |
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