Using Cable or Even Netflix to Qualify for a Loan?

Rate this item
(0 votes)

If prospective home buyers don’t have a long credit report, mortgage lenders may be skeptical about their ability and willingness to repay their debt. But those with a thin credit profile may still be able to show their worth the risk by showing off their nontraditional credit. recently said this can be shown in a number of ways from a P.O. box, a book club membership, to even a Netflix account. 

Lenders aren’t only looking at your credit score but also they like to see a certain number of “trade lines” or credit accounts (such as car loans and credit cards). Strong credit profiles usually consist of old trade lines that are still active — such as student loans or a mortgage — and revolving accounts, such as credit cards. Lenders typically like to see around three trade lines with at least a yearlong history in an applicants’ credit profile. 

For borrowers who come up short on credit accounts, nontraditional trade lines may help support their case, although not all lenders will accept alternative credit accounts. 

In a recent article, highlighted some alternative trade lines that can be used for those borrowers who may need to show more in their credit profile. Such alternative trade lines may include: 

  • A storage unit
  • Cable or cellphone bill
  • Auto or renters insurance
  • Utilities paid (separate from monthly rent)

Source: “How Netflix Account Can Help You Qualify for a Mortgage,” (Aug. 27, 2013)

Read More

Borrowers Face Greater Scrutiny from Lenders

Read more

Read 2382 times





"Welcome to Ogden Valley!
Thinking of relocating
to the Ogden Valley area?
You've come to
the right place!"

"Your Realtor for life"
Darin Michl
Call me anytime!

[SMS Text - Please Contact Me]