how would I build credit to get a loan to buy a house since I have no credit?

Asked by Bobbie Lancaster, Granite City, IL Tue May 1, 2012

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rboyle, , Granite City, IL
Sun Aug 4, 2013
Good Afternoon, Bobbie. My name is Robert Boyle, and I run a company, Justine PETERSEN (JP) http://(www.justinepetersen.org) which assists individuals to build assets through home purchase, small business lending and Credit Building. Please feel free to contact me at: rboyle@justinepetersen.org for more information on how simple it is to begin and to raise a credit score. JP just opened a Granite City office so give me a buzz.
-Rob
0 votes
Cecelia Marl…, Mortgage Broker Or Lender, Chicago, IL
Wed May 2, 2012
Hi Bobbie,
The Federal Savings Bank has a program that you can enroll in to assist you with obtaining the credit score needed to purchase. This is a personalized plan that will give you step by step instructions on what you need to do to build your credit. Feel free to call me today if you are interested in more information.

Cecelia Marlow
The Federal Savings Bank
Mortgage Banker
312-738-6294
http://www.yourhomeloanpartners.com
0 votes
Kristina And…, Agent, Charleston, IL
Wed May 2, 2012
Look for a house that is being sold ON CONTRACT. Many times, these sellers will act as the bank for a short period of time and as you make payments (on time, etc.) this will build your credit. Should you be able to obtain a loan in less time than is on your contract, arrange with the seller that a large amount of the loan be reduced (this is also incentive to go out and get that Bank Loan!). The result is:
1. you are buying the house you want
2. your payments (though initially @ a higher % rate) are PAYMENTS-not rent
3. your payments are building your credit
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Tue May 1, 2012
Installment loans and credit cards are great ways to build credit. I do not recommend store cards though. Get a master card or visa, just make sure to stay under 50 percent of your credit limit and either pay off each month or keep the balance under 50 percent.

Prepaid credit cards are good if you can not get credit cards. Just never pay only the minimum.

Installment loans for cars, electronics, furniture (Only if you are going to buy anyway and it is in your budget) are also great ways to build credit. Just pay off every month.
0 votes
Don Tepper, Agent, Burke, VA
Tue May 1, 2012
Everyone's got SOME credit.

Still . . .

There are plenty of books on the subject. Check Amazon.

Basically, what you want to do is establish credit at places it's easy to do so. If you have a checking account with a bank, apply for a small loan. Then regularly pay it off.

Apply for a credit card. If you're rejected (due to lack of credit), then apply for what's called a secured credit card. You basically deposit a sum of money (say $500), and you receive a card wtih a $500 credit line. If you don't pay, they've got your cash as security. But what you do is make small purchases. Don't pay them off immediately. Let some of the charges roll over to the next month. That'll cost you a bit in interest, but not very much.

You then work your way upward. Maybe a larger loan from your bank (after you've paid off the first one). After you've established your credit with the secured credit card, then apply for a non-secured one, and do the same thing. Charge a bit--not much. Pay most of it off, but let some roll over for a month or two.

And read a few books on the subject, too.

Hope that helps.
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