I am currently trying to buy this house before June, but when I applied the broker said I dont have enough tradelines for the amount of house I want to buy. So instead of applying for credit and risking my score going down because of inquiries I looked into buying some tradelines. It is possible for a hefty fee, but I'm kinda in a rush. Has anyone dealt with any of these companies that advertised on the internet and if so which ones are good?
The whole practice may be on the edge of being a scam. In addition, federal regulatory agencies have begun to look into it as they start to deal with the collapse of the sub-prime mortgage market. http://realtytimes.com/rtcpages/20070409_creditboosting.htm The one thing you might try would be if you are buying this with your spouse, or SO, and they have accounts with good credit history, you might have them put you as an authorized user on those accounts. If you are buying a house together, you are already in the same boat financially. What are your FICO scores? That is what the lender will be looking at, not the number of tradelines, even though that might affect scores. Furthermore, if you are having a hard time getting approval for a loan, are you sure that if you got approval, you could afford it? YOU have to look after your own interests. Do not count on whether the lender will approve the loan as any determination that you can in fact afford it. Have you talked to a different broker? Bring a copy of your credit reports and scores, and make clear up front you are not applying at this time, and do not authorize him to pull reports, but are asking for advice.
6) Is this legal? Yes. There is no law that prohibits what we are doing. Many credit services companies, mortgage brokers, and law firms have been doing this for years. The Federal Trade Commission is the regulating agency. Now what you do with the tradeline is another issue. It is NOT legal to mislead lenders, or otherwise misrepresent yourself when applying for loans. Talk to your friendly loan officer and make sure to disclose that you are planning to purchase a tradeline. We are not lawyers, and do not give legal advice. A washington post newspaper article was written on this very subject on 4/6/07, and quotes various sources, including the FTC. This article, or similiar ones have appeared in many other publications across the nation, including the LA Times, Seattle Times, and the Chicago Tribune! Hmmm..never heard of such a scam before. It is NOT legal to mislead lenders, or otherwise misrepresent yourself when applying for loans. So anytime you apply for a loan you are misleading the lender as they assume this is your good tradeline/credit?
