How do you obtain credit as a trader?

Discussion in 'Professional Trading' started by turkeyneck, May 27, 2012.

  1. When you need to get a mortgage from a bank, rent a house from a landlord, etc? They need to see proof of income and a steady job. What if you just had a down year or two?
  2. Income history on your tax returns. For standard mortgages they average the last two years results. You're out of luck if both years are losers.

    That's why they developed the Alt mortgage products like stated income/assets, etc, but good luck getting one at attractive rates now.
  3. I would offer to pay 3 months in advance and see how that works.

    get a few references and maybe even do a 6-mo lease and pay off most of it. that should put them at ease.

    if neither possible, i would quit trading and spend time looking for some sort of employment.

    good luck.
  4. Surdo


    Some landlords will take pre-payment of 6 months - year upfront and/or extra security. Get a guarantor or use a company called Insurent that will guaranty your lease for ~ a month's fee. Mostly larger landlords take that)
  5. rmorse

    rmorse ET Sponsor

    They have liquid securities that they can liquidate very quickly. When you buy a house, and default, they require legal action. Securities in a margin account are in street name and you sign an agreement that explains they can do what they need to in order to protect themselves, without legal action.

    You don't need credit, income or a job. You just need a background that is acceptable to the broker.
  6. hitnrun



    he is not opening a brokerage account ? what are you taking about ?
  7. rmorse

    rmorse ET Sponsor

    Sorry, I read the question too quickly.

    Trading is a business like any other. If you don't have tax returns with earnings going back two years, you can't even rent an apartment in some cities let alone get a mortgage. In the old days, you could get a non income verification loan for a home. I don't think they offer those any more.
  8. hitnrun


    if you have the money for a down payment or a few months rent you should be fine

    no need for credit if you have the money . cash is always king

    otherwise you have to be creative to solve your issue to obtain credit
  9. Surdo


    NO CREDIT is not that big of a deal with landlords, BAD credit another better have a really good story for them and be prepared to pre-pay 6-12 months.

  10. If you had a down year or two obviously you won't be looking to buy a house, move to a bigger house or add to your current bills!
    However if you are a successful trader your tax returns will do and most prop firm would have done a U4 check on you thus you will be able to list them as your employer...
    #10     May 28, 2012