Home Buying in Westland>Question Details

Jeffrey R Le…, Renter in Westland, MI

Can you get a loan if you have no credit..?

Asked by Jeffrey R Leblanc, Westland, MI Sun Apr 24, 2011

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Brian Rayl’s answer
Depends what you mean by no credit. There are very, VERY few people with "no" credit. EVERYONE has some credit, even if it is bad.

I have had someone tell me that they have no credit because they have never had a credit card or purchased a vehicle. Come to find out, they didn't realize that the Dillards, Best Buy, or what ever card they had counted or that their electricity company, cell phone provider, etc. reported their prompt, on time payments to the credit reporting agencies.

If you truly have no credit or your credit is bad, then it would be quite difficult to buy a home. Another option is to have someone with great credit cosign on the loan with you. You can pull a free credit report each year by law from each of the agencies. Do this and see what exactly is on your credit or speak with a loan officer who can pull your credit report and scores.

If you don't have any credit, start building some. Get a credit card and pay it off every month, etc. Use credit responsibly.

It's more than real estate. It's RAYL-Estate!

Brian Rayl, REALTOR®, e-PRO, SFR
Keller Williams Elite Park Cities
Web Reference: http://brianrayl.com
2 votes Thank Flag Link Sun Apr 24, 2011
Jeff, do you have an income? Do you have any past credit history? Do you have any money for a down payment? Are you looking for a home loan?
0 votes Thank Flag Link Sun Apr 24, 2011
Hello fellow guitar player,

The answer is yes, but I need to clarify. There are provisions set forth by HUD, VA and the USDA whereby a consumer with no credit score or credit history can buy a home. I have done several loans under these circumstances commonly referred to as non-traditional borrowers. Your problem will be finding a lender that will follow the government guidelines. Many of the lenders have their set of overlays restricting these type of borrowers. I am sure with a little research you can find some help. Start by contacting some local Realtors in your area and be specific about having no credit. Having said that, I would advise you to read the article I have written regarding this very subject. If you start working on your credit today, within 90-120 days you would need to ask this question.



Good Luck!
Web Reference: http://www.AFN-Loans.com
1 vote Thank Flag Link Mon Apr 25, 2011
The short answer is no. The longer answer is that you probably do have some credit and may not realize it.
Have you bothered to take advantage of the free credit report that everyone is entitiled to once a year?
You may do so at http://www.AnnualCreditReport.com this is the only truly free credit reporting site approved by the Federal Trade Commission and would be a good place for you to start.

You may need to start building your credit and if this is the case you can Google how to do this.

Good Luck
1 vote Thank Flag Link Sun Apr 24, 2011
I can suggest you to go through klickcredit.com. This company make the way of getting loan so easy. It offers 7% APR with no credit history. I found this company useful.
0 votes Thank Flag Link Thu Aug 28, 2014
If you truly have a credit score of zero.. then good for you. That is my goal... to be debt free and a credit score of O or so low it hardly registers. We have all bought into this nonsense that we have to buy stuff (on credit) that we can't pay for in order to be credit worthy to buy more stuff (on credit) that we can't pay for? how crazy is that? I have heard of people with a Zero credit score. They have decided to only use cash, what a concept. It does make it more difficult to apply for a mortgage but it can be done. You must seek out a bank that will do "MANUAL UNDERWRITING". They will actually look at your whole financial situation, not just plug in numbers into a system. If your credit is non existent because you do not believe in debt, but you have the appropriate income and owned assets, then they will overlook the credit rating. But if it is zero because you are young and just got your first job and never bought anything and now you want to buy a house... then that is not going to happen.
0 votes Thank Flag Link Sun Apr 24, 2011
Bad news/good news:

Bad news: No. You can't get a loan if you have no credit.

Good news: You do have credit. Brian and Larry are correct: Whether you know it or not, you do have credit. It may not be good. Or it may be insufficient to get a loan. But you do have credit.

There are plenty of good books out there on how to build credit. Do a search on Amazon, for instance. Get two or three books. There will be plenty of information on what to do.

Also, find a Realtor and ask him/her to suggest someone to help--a lender or a mortgage broker. It's very likely the Realtor already knows and works with someone who helps prospective buyers improve their credit.

Hope that helps.
0 votes Thank Flag Link Sun Apr 24, 2011
Don Tepper, Real Estate Pro in Burke, VA

It's very doubtful.....consider taking steps to generate GOOD credit. Obtain a credit card and use it but pay your your monthly bill on time. Having a car loan will help. However, it's not recommended to purchase a new car just prior to applying for a mortgage.

Good luck,

0 votes Thank Flag Link Sun Apr 24, 2011
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