What happens if the lender finds out I purchased an authorized user?
If a lender finds out, an authorized tradeline has been purchased he may proceed in any way which is regulated by the guidelines and operating procedures of the respective institution.
Most underwriting guidelines would indicate that when suspected credit repair tampering has occurred with authorized user tradelines that the loan should be evaluated as if they did not exist on the report.
Reports of lenders wanting to raise rates before closing have been associated with authorized user tradelines, but they have also been recognized as a part of trying to increase the profit of the lending institution by using a numerous of excuses to adjust upwardly from the low advertised and pre-approved rate.
Each circumstance is different, and almost all lenders have practices and procedures which are loosely governed by either fair lending practices or even further regulate by the type of potentially “backed” lending product being offered.
Key factors to understand are:
* Lenders are governed by their guidelines rules and regulations.
* Authorized user tradelines may be cited as one of many reasons to raise interest rates before closing a loan based on profit targeting procedures of lenders.