An authorized user tradeline shows a perfect payment history but the primary account holder filed bankruptcy. How does this affect the authorized user's credit profile for mortgage purposes?
Correct Answer
B) The tradeline will show the bankruptcy notation and may impact the authorized user
Authorized user accounts can be affected by the primary account holder's bankruptcy. The tradeline may show bankruptcy notations or be closed, potentially impacting the authorized user's credit score and profile. Underwriters will evaluate the overall impact on creditworthiness.
Why This Is the Correct Answer
Authorized user accounts can be affected by the primary account holder's bankruptcy. The tradeline may show bankruptcy notations or be closed, potentially impacting the authorized user's credit score and profile. Underwriters will evaluate the overall impact on creditworthiness.
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