Need Three Tradelines to Validate a Credit Score?

4 Replies

Hello everyone,

I am going through the mortgage approval process and though everything else checks out (good income, credit score, reserves) she is claiming that I cannot qualify for an investment loan because I only have one tradeline (a credit card). She says that I need three tradelines with 12 months of reporting history to validate my credit score. If I were going for a primary occupancy loan, then we could use rental/utilities history, however we are going for an investment loan (obviously) so I'm out of luck.

Has anyone else had experience with this? Is this a typical lending requirement?

@Brandon Hall  

They want to see a decent credit history of on time payments. 1 tradeline does not show much. For primary residences that the loan is VA or FHA, you can add non-traditional credit, aka cell phone bill, gym membership, etc. The problem is only conventional loans finance investment property's, and conventional loans do not accept non-traditional credit.

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