Home Buying in Dallas>Question Details

Ava Cerrillo, Home Buyer in 75227

Help! 22 with no credit!

Asked by Ava Cerrillo, 75227 Tue Jun 4, 2013

Hello, Im 22 and want to buy a home, what do i do if i have no credit? Is there something else i can try since im not able to be approved? Is there any way to go about this?
Ive had my car since 2011 and thats the only type of credit i have.

Thanks in Advance (:

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John Lyng’s answer
Ava,

My program accepts a 12-month history of on time payments for alternative credit such as utility bills, insurance, etc. I do not look at FICO scores.

My program also requires no down payment or closing costs as well. You should get qualified before engaging with an agent to ensure a smooth process.

Check out http://www.NACA.com for program details.

Regards,
John Lyng
Mortgage Counselor - NMLS 280951
JLyng@naca.com
0 votes Thank Flag Link Sun Jun 23, 2013
We're able to work with alternate trade lines...utilities, car insurance, cable, phone, etc.

You've had a car since 2011, but you have no credit scores? I may be able to help.

Give me a call or feel free to apply online at http://www.rhlapps.com/kjones

K.C. Jones
RH Lending
214-432-0486
kjones@rhlending.com
0 votes Thank Flag Link Wed Jun 5, 2013
Good morning Ava,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Wed Jun 5, 2013
There are some good answers to your question, but let`s be more specific. Obtaining a revolving credit card or two will be needed. It can be either secured or unsecured from any bank or credit union that reports to all three credit reporting agencies. The key to your score will be maintaining a balance of 20% of the credit limit or less. Another option is to become an authorized user on a family members account, again with a balance that is no more than 20% of the credit limit and no late payments. Installment accounts will not have the same potential score advantage. You may also want to have a residential mortgage credit report from a loan officer. They are much more detailed and complete than what you might see online.
0 votes Thank Flag Link Wed Jun 5, 2013
You will have to start from the beginning and build up your credit... take out 2 to 3 credit cards, use them, and pay them off- these are rolling accounts, keep them in good standard and NEVER miss a payment. In about a year you should have enough credit to get yourself a loan.
0 votes Thank Flag Link Wed Jun 5, 2013
You may need to open up a small line of credit and simply pay it on time for 6-12 months to establish sone good credit. It generally does not need to be a large amount. Talj to your preferred lender and ask them what you can do to improve your score in the shortest time frame. Good luck!
0 votes Thank Flag Link Wed Jun 5, 2013
Do you pay rent to an apartment or your parents? Do you pay utilities? These are called alternate lines of credit and there are lenders who will work with you to use these lines. You might also want to get a credit card right away. I suggest people use it for only one purpose like gas and pay it off each month. If you know you are using it for only one thing, you are less likely to get yourself in trouble by using it too much. I have gotten people into homes within 3 months using this technique. Call me for lender names. 214-669-9920
0 votes Thank Flag Link Wed Jun 5, 2013
If you are paying for things mainly by cash or check, you are likely working against establishing a credit rating. You may need to get used to paying for some things by credit card in order to get your credit established.

Having a good credit rating is all about paying bill on time and having a credit card or two with regular payments that are maintained. Having one that is totally paid off is fine but one at least one should always have a small balance that receives a regular payment.

Good luck,

Bill
0 votes Thank Flag Link Wed Jun 5, 2013
Hi Ava,

I am refer you to a lender that will able to build up your credit. I have partnered with him many times and my clients usually will able to get in a home after 2-5 months.

Email me at dixondfw@gmail.com

Dixon
Realtor
http://www.findyourtexashome.com
0 votes Thank Flag Link Wed Jun 5, 2013
Get a credit card. Use it to buy gas or groceries or charge your utilities to it. Be sure to pay it off every month with the money you would normally budget for those expenses. It won't take long to establish good credit!
0 votes Thank Flag Link Tue Jun 4, 2013
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