What defines a valid credit report according to USDA?

A valid credit report according to USDA guidelines is characterized by having two eligible trade lines, each with a 12-month repayment history. This criterion is essential because it demonstrates the borrower's ability to manage credit responsibly over time, which is a key factor in assessing creditworthiness. Lenders look for a history of timely payments and the management of credit accounts to ensure that borrowers are likely to meet their repayment obligations in the future.

While having three trade lines is beneficial, the requirement specifies two as the minimum for validity. Furthermore, the focus on repayment history provides insight into the borrower's financial habits, showcasing their reliability. The emphasis on having a repayment history prevents consideration of trade lines that might not reflect actual borrowing behavior, ensuring a comprehensive evaluation of the applicant's credit profile. The other options do not align with the USDA’s specific guidelines for a valid credit report.