How do lenders view authorized user tradelines added to me report?
Most underwriting guidelines consider three possible scenarios for authorized user tradelines. If there are several authorized user lines, open a lender may try and completely discount the increase in credit rating.
Standard procedures might require the proof of relationship to the primary account holders to be considered for the loan if they are considered excessive by the potential lender.
If anyone whose name will appear on the new loan is the primary card holder, no further questions will be asked.
For loans who underwriters feel a limited amount of authorized user tradelines probably had a minor impact on improving the overall credit score, they are normally processed according to loans without any authorized tradelines appearing.
Each lending situation and credit granting company have different policies and procedures are the above is only what might be considered a most common list of procedures for underwriting.
Lenders are also in the business of making money and sometimes they may use some excuses during the closing process to try and raise interest rates or change terms.
Key factors to understand are:
* Each lender is governed by their specific guidelines when it comes to authorized user tradelines.
* There is no consistent statement which encompasses the subjectivity of card issuers as a whole.
* Lenders are in the business of maximizing profit on loans and rate increases are commonly cited as needed for various reasons before closing.