FundRobot » Money Funds » How do we build credit?

Old   #1 (permalink)
Posts: 2,646
Default we build credit

My husband and I are currently house/land hunting.
His father will have to co sign for us, which really bothers me.
I will feel like I will not really own the property with his fathers name on it as well.
HOW do we create credit?
We have a joint account.
We do not use contract cell phones, we use prepaid cell phones.
I am 23.
Thanks for the advice!
Neither of us own or use credit cards at this time.
I am unable to get a credit score because I have no credit at all.

Mary500 is offline   Reply With Quote
Old   #2 (permalink)
Posts: 2,600
Default we build credit

Get a secured credit card.A secured credit card is just like a “regular,” or unsecured credit card, only you are required to put down a security deposit – typically $300 to $500 – to provide assurance to the creditor that you will repay your debt. Your credit limit is often the amount of your security deposit, or a percentage thereof.

Many people confuse a secured credit card with a debit card, however the two are very different. First, banks do not report debit card usage to the credit bureaus, as a debit card is not an extension of credit. A debit card is merely a convenient way to access the funds in your bank account.

Creditors, on the other hand, do typically report secured credit card activity to the credit bureaus, as a secured credit card is an extension of credit. Your purchases are not deducted from your security deposit. Rather, each time you charge something, you are effectively borrowing money from the credit card company and are obligated to repay that debt. As a result, how responsibly you use a secured credit card will affect your credit score – both positively and negatively. Paying on time also helps once you get a credit card.
Cash754 is offline   Reply With Quote
Old   #3 (permalink)
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Unfortunately the best thing you can do right now is hold off on the house, especially if it bothers you to have a co-borrower. You're going to need at least 24 consecutive months of satisfactory credit accounts on your report to get a good enough score and credit history to qualify for a mortgage on your own. This means if you get a credit card and make the minimum monthly payments on-time each months for 24 months, you will be in good shape. Even better would be another card on top of that or some other line of credit because 1 alone doesn't show much history. The older a credit account, the better it is for your credit because it shows long-term reliability. If you can't get a credit card, you may need to start with a secured card and work up to an unsecured one. It will happen you just have to be patient. And contract cell phones don't even go on your credit, so that's not relevant. Only money that is loaned to you. Other things that are billed, like utilities and cable, do not go on your credit report unless you don't pay a past due balance and it's sent to a collection agency. But anyway, best thing you can do is plan for the future, treat your credit with care and it will reward you generously. It also helps to be at the same job for a while when it comes to getting a mortgage. And when or if you ever get credit cards, keep them at 30% of your debt, you don't want the mortgage lender to see that you owe a lot of money. Good luck
PrettyHot88 is offline   Reply With Quote
Old   #4 (permalink)
Posts: 2,586
Default we build credit

do you even have any savings?
you need a down payment to buy a house,,, thousands
a secured card takes 2 years to build credit
Gamer125 is offline   Reply With Quote
Old   #5 (permalink)
Posts: 2,672
Default we build credit

Mortgages have co-borrowers, not co-signers.
If you don't want dad-in-law as a co-borrower, you should wait to purchase a house.

If you have the income to purchase a home, you should not have any problem getting a credit card. The spending limit might be low, but you would still be eligible for it.
Sarah69 is offline   Reply With Quote
Old   #6 (permalink)
Posts: 2,604
Default we build credit

Without credit cards or loans (car loans, etc.), you do not build credit Utilities such as phones, gas, electric, are not considered credit and so those payments do not count towards building up credit. Neither does checking or savings accounts (these are just places to store your money).
TheGreat33 is offline   Reply With Quote
Old   #7 (permalink)
Posts: 2,557
Default we build credit

You are not in any position to a house or land. You should not burden any relative. You need savings in
the bank when you apply for a mortgage as well as $3000.- $6000. extra for closing costs,lawyer's fees
inspections, insurance and utilities deposits. You will need proof of sufficient income to make mortgage
payments. You should have no other debt.
NewTech0 is offline   Reply With Quote


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