How Netflix Account Can Help You Qualify for a Mortgage
Credit.com | August 27, 2013 | link
By Chris Birk
Ideally, prospective homebuyers have a miles-long credit report that leaves little doubt about their ability and willingness to repay debt. That’s clearly not always the reality on the ground, a fact not lost on mortgage lenders.
Consumers with a positive but thin credit profile may still be able to secure financing. Success may hinge on what kind of nontraditional credit you can show to support your creditworthiness, be it a P.O. box, a book club membership or even a Netflix account.
That’s one more reason why it’s important to stay on top of all your recurring accounts, even if they don’t ultimately report to the major credit bureaus.
What Lenders Look For: Credit requirements will vary by loan type and lender. For example, right now VA lenders are generally looking for a credit score of at least 620. Conventional loans are more likely to require a score in the neighborhood of 740.
In addition to the scores, lenders also want to see a certain number of “trade lines,” which is how mortgage folks refer to credit accounts. Do you have a car loan? That’s a trade line. How about a credit card? Boom, another trade line.