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Old 05-18-2011, 07:08 AM
 
Location: colorado
2,788 posts, read 4,237,546 times
Reputation: 3312

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I have no credit..But I also have no debts..except for my student loan that I'm paying off every month..
Everything I owe I paid cash with..I bought 3 jeeps paid cash for all of them
I don't have any credit cards, don't want to get in debt. I only have a debit card.
I pay all my bill on time.
Should I get some credit cards to start establishing some kind of credit?
Im looking to buying a house the end of the year..if all goes well
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Old 05-18-2011, 08:40 AM
 
5,474 posts, read 8,162,916 times
Reputation: 7294
(4) bills you paidfor (1) year will get you a morgage

Credit cards do little to build credit

With a house and paying cash for vehicles... Why would you need it?
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Old 05-18-2011, 09:10 AM
 
Location: Lansing, MI
2,954 posts, read 5,943,019 times
Reputation: 3236
Depends on your credit score, the magic number that helps a lender determine if they want to give you a mortgage.

The only thing having credit proves is that you're really good at owing someone else money. You take the money, pay it back on time so that you can get more money extended to you. Potential lenders don't want to give money to someone who doesn't already pay into the system.

Credit cards can boost your score. Get a small one, put charges on it. Make the minimum payment for 4-6 months, then pay it off. I have a $300 limit card with 0% that boosted my score over 20 pts. I used $250, paid a little over minimum for 4 months, paid it off. Bam, score went up 20 pts. But, I also have 2 auto loans in perfect standing.

You won't know how you stand with a home purchase until you get a hold of your credit score - you are doing yourself a big favor by figuring that out a head of time so it can be fixed instead of when you're ready to make the purchase. USDA/FHA want to see 620-640, Homepath 660, and conventional can be flexible as long as you have the down payment money.
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Old 05-18-2011, 10:23 AM
 
48,519 posts, read 81,013,914 times
Reputation: 17978
Not only credit but debt to income makes a huge difference. this is no longer 2007 in credit and documantation requirements.
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Old 05-18-2011, 10:24 AM
 
Location: colorado
2,788 posts, read 4,237,546 times
Reputation: 3312
Quote:
Originally Posted by chance2jump View Post
Depends on your credit score, the magic number that helps a lender determine if they want to give you a mortgage.

The only thing having credit proves is that you're really good at owing someone else money. You take the money, pay it back on time so that you can get more money extended to you. Potential lenders don't want to give money to someone who doesn't already pay into the system.

Credit cards can boost your score. Get a small one, put charges on it. Make the minimum payment for 4-6 months, then pay it off. I have a $300 limit card with 0% that boosted my score over 20 pts. I used $250, paid a little over minimum for 4 months, paid it off. Bam, score went up 20 pts. But, I also have 2 auto loans in perfect standing.

You won't know how you stand with a home purchase until you get a hold of your credit score - you are doing yourself a big favor by figuring that out a head of time so it can be fixed instead of when you're ready to make the purchase. USDA/FHA want to see 620-640, Homepath 660, and conventional can be flexible as long as you have the down payment money.

Thank you for the great advice..
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Old 05-18-2011, 01:18 PM
 
Location: South Carolina
1,615 posts, read 2,832,251 times
Reputation: 1910
Quote:
Originally Posted by Themanwithnoname View Post
(4) bills you paidfor (1) year will get you a morgage

Credit cards do little to build credit

With a house and paying cash for vehicles... Why would you need it?
Yup. When I purchased my house, the bank built me credit based on years' worth of utility bills and other steady payments I made in the past. I got a better rate than most of the people I know (due to good market timing also), and I had zero credit. I still don't have any credit cards or debts other than the mortgage.
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Old 05-18-2011, 01:20 PM
 
Location: NJ
22,674 posts, read 28,559,598 times
Reputation: 14611
you should be charging everything on a credit cards, pay it off every month, get rewards. be winning like charlie sheen.

Last edited by CaptainNJ; 05-18-2011 at 01:29 PM..
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Old 05-18-2011, 01:24 PM
 
Location: San Antonio, TX, USA
5,142 posts, read 11,158,934 times
Reputation: 2500
Quote:
Originally Posted by CaptainNJ View Post
you should be charging everything on a credit cars, pay it off every month, get rewards. be winning like charlie sheen.
Now that's what I'm talking about!
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Old 05-18-2011, 01:42 PM
 
5,474 posts, read 8,162,916 times
Reputation: 7294
I don't ge the utility or reason for owning a $300 limit credit card..
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Old 05-18-2011, 02:20 PM
 
Location: San Antonio, TX, USA
5,142 posts, read 11,158,934 times
Reputation: 2500
Quote:
Originally Posted by Themanwithnoname View Post
I don't ge the utility or reason for owning a $300 limit credit card..
I don't follow...
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