Taking out a loan?

[TheNewbie]

My advice is to stay the fuck away from credit all together...if you can't pay cash for it then don't get it. And as far as build your credit score, well if you don't borrow money for anything, then you really don't need credit the only thing worth getting a loan for IMO is a house, and if you have a good down payment and a good steady work history, then you can find a mortgage lender to finance you with a zero credit score. That's just my opinion...nothing more Good luck man!

Dave Ramsey.. haha

[sprkn_ranger]

My advice is to stay the fuck away from credit all together...if you can't pay cash for it then don't get it. And as far as build your credit score, well if you don't borrow money for anything, then you really don't need credit the only thing worth getting a loan for IMO is a house, and if you have a good down payment and a good steady work history, then you can find a mortgage lender to finance you with a zero credit score.

That's just my opinion...nothing more

Good luck man!

Wrong. 550 was the minimum score and that was with an outrageous interest rate. Now I believe the minimum is 620, which is even more closely regulated due to the housing bubble crashing.

And debt is a good thing. There is nothing wrong with debt at all. The point is to make sure you accumulate good debt. A house, a car, and a credit card can keep almost anyone content and happy.

When I was 18, I got a Bank of America credit card. $3,000 limit. After a year with my income and credit I was offered a credit increase....to $10,000. And I got a Chase credit card for $3,500. And within 2 months I had maxxed out both cards and was not making the money I was. My credit was so fucked but I learn things the hard way.

Yes, you can get a home loan with a 0 credit score...you must find a lender that does manual underwriting such as Churchill Mortgage to do so though. And here are some of the requirements to obtain a mortgage with a 0 fico score:

-Put at least 20% down on your home.

-Choose a 15-year, fixed-rate conventional mortgage.

-Have a strong employment history and personal income to support the loan.

-Demonstrate 4–6 trade lines that span 18–24 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Trust me, I've done some research on it...it's damn tough and takes a while cause the underwriter makes who makes the decision has to go through a lot of paperwork to determine the risks, but it's not impossible.

[sprkn_ranger]

My advice is to stay the fuck away from credit all together...if you can't pay cash for it then don't get it. And as far as build your credit score, well if you don't borrow money for anything, then you really don't need credit the only thing worth getting a loan for IMO is a house, and if you have a good down payment and a good steady work history, then you can find a mortgage lender to finance you with a zero credit score. That's just my opinion...nothing more Good luck man!

Dave Ramsey.. haha

Yup...and personal experience lol

[TeamHT]

My advice is to stay the fuck away from credit all together...if you can't pay cash for it then don't get it. And as far as build your credit score, well if you don't borrow money for anything, then you really don't need credit the only thing worth getting a loan for IMO is a house, and if you have a good down payment and a good steady work history, then you can find a mortgage lender to finance you with a zero credit score.

That's just my opinion...nothing more

Good luck man!

Wrong. 550 was the minimum score and that was with an outrageous interest rate. Now I believe the minimum is 620, which is even more closely regulated due to the housing bubble crashing.

And debt is a good thing. There is nothing wrong with debt at all. The point is to make sure you accumulate good debt. A house, a car, and a credit card can keep almost anyone content and happy.

When I was 18, I got a Bank of America credit card. $3,000 limit. After a year with my income and credit I was offered a credit increase....to $10,000. And I got a Chase credit card for $3,500. And within 2 months I had maxxed out both cards and was not making the money I was. My credit was so fucked but I learn things the hard way.

Yes, you can get a home loan with a 0 credit score...you must find a lender that does manual underwriting such as Churchill Mortgage to do so though. And here are some of the requirements to obtain a mortgage with a 0 fico score:

-Put at least 20% down on your home.

-Choose a 15-year, fixed-rate conventional mortgage.

-Have a strong employment history and personal income to support the loan.

-Demonstrate 4–6 trade lines that span 18–24 months. These are just regularly recurring expenses such as rent, electric bills, water bills, cell phones, etc.

Trust me, I've done some research on it...it's damn tough and takes a while cause the underwriter makes who makes the decision has to go through a lot of paperwork to determine the risks, but it's not impossible.

You need to do A LOT more research then.

[sprkn_ranger]

Lol...ok then

Edited March 19, 2012 by sprkn_ranger

[optical]

I also got no credit but recently got a credit card with 300 dollar limit and was told to pay off my bill in full each month to avoid interest and every 3 months your credit card provider reports it to the credit bureau. The only card i could qualify for was the capitol 1 card.

[TeamHT]

Lol...ok then

The site you quoted is not new to me, but let me ask you...have you met someone with a 0 credit score who has a mortgage? They can underwrite it as best as possible, but that's not guaranteed. I've heard the same reasoning but after my career in the financial world, albeit limited and not extensive, I have yet to see it.

I'll research more into the 620 but I'm almost sure I'm right. After the housing market debacle and families forced to leave their foreclosed homes, it hardly makes sense that an institution would willingly approve a mortgage of a substantial amount with no credit history. Seems like a recipe for disaster.

[EricM9104]

Ok so I'm 19, work full time, make about $900 a month. Still live with my parents, but I want to take out a 3-3500 dollar loan. Any suggestions on where to go? Or do you guys think I'll even qualify for a loan?

Won't even come close to qualifying. See if your parents can co-sign the loan.

[sprkn_ranger]

Lol...ok then

The site you quoted is not new to me, but let me ask you...have you met someone with a 0 credit score who has a mortgage? They can underwrite it as best as possible, but that's not guaranteed. I've heard the same reasoning but after my career in the financial world, albeit limited and not extensive, I have yet to see it.

I'll research more into the 620 but I'm almost sure I'm right. After the housing market debacle and families forced to leave their foreclosed homes, it hardly makes sense that an institution would willingly approve a mortgage of a substantial amount with no credit history. Seems like a recipe for disaster.

Believe me, I'm not disputing the fact that it's hard, but it's not impossible. And yes the housing crisis has made it even harder, but it's still not impossible.

Here's a link to that lenders site about a no credit score loan:

http://www.churchillmortgage.com/info/no-credit-score.aspx

Edit- and to answer your question...no I do not know anyone that has obtained a mortgage with a 0 fico, but let's face it...how many people are there thy have a 0 fico? It's not really common.

Edited March 19, 2012 by sprkn_ranger

[lilone71742]

The best thing to do is start small and work your way up, I can tell you by experience. Be smart and allow time to be your friend. I made some bad credit decisions (due to being the only one working) but I'm at a better place now. Credit Unions are great places to start. Wish you well in your pursuit. Alot of the guys above give good advice, learn from the experiences/ advice you get. In the end it is up to you to get the ball rolling and keep it in play.