A joint applicant's credit report shows they are an authorized user on their spouse's account, which has excellent payment history. However, the spouse is not applying for the mortgage. How should this tradeline be evaluated?
Correct Answer
B) The tradeline can be used if it demonstrates creditworthiness
Authorized user tradelines can be considered in credit evaluation if they demonstrate the applicant's creditworthiness and management of credit obligations. The key is whether the tradeline reflects the applicant's credit behavior, not whether the primary account holder is on the loan.
Why This Is the Correct Answer
Authorized user tradelines can be considered in credit evaluation if they demonstrate the applicant's creditworthiness and management of credit obligations. The key is whether the tradeline reflects the applicant's credit behavior, not whether the primary account holder is on the loan.
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