Catechizing the Interest of Credit Score if You Don’t Borrow
Almost every other person is now aware that they need to have a good credit score. However, do you actually need a credit score? If you don’t even need to borrow, what would you do with a credit score? You must be shocked to hear this, right? Especially, with all the financial advisors asking you to maintain your credit score, asking you to pay down the debts, believing in what I have said must sound bogus.
Considering the truth
Credit score – why do we need it? We need it so that we can borrow. In order to obtain a mortgage, or a credit score, or even any other type of loan, we require a good credit score. None of the lenders or the creditors would approve your credit application, if you do not have a good credit score.
Nevertheless, what if you do not need to borrow anything in any form? What would you do with a credit score, when you have never thought of borrowing any money? In order to build the credit score, you will have to borrow first. Yes, without actually borrowing any money, it never would be possible to have a credit score under your name. That would mean, you are incurring debts because you need a credit score. Even if you need to borrow, you may not require a credit score as always.
Still, you must be wondering how would it be possible to buy a home without credit score? Is it possible to buy a car without financing it, which again would require you to have a good credit score? Is it possible to rent an apartment without a credit score? What about the insurance policies – can you get any of the insurance policies without a credit score?
It is possible to do all of the above without a credit score. However, the main problem is our society. We have now become totally and completely dependent on a loan and credit cards, and all of the other options through which we borrow. It is mainly with the credit cards that we shop and even make payments on other debts. In fact, businesses too use credit cards for completing their transactions. We can’t even think of the resources which could otherwise be used for buying a car, or renting an apartment and so on. BTW, if necessary you can gather information on credit card consolidation from DebtConsolidationCare.
One of the easiest, but lesser known ways to buy a home without a credit score is the manual underwriting. This is the process in which, the people involved with the process require you to provide your real life information. These can be the details of your utility bill payments, rent receipts, income and so on. Furthermore, try to save up quite a lot, so that you can obtain a mortgage through this, as it may not always be possible to buy a home without a mortgage.
As for the rent. you can start using eCredable.com which has the provision for you to build a payment history, based on your previous rental history, utilities and so on. If you actually have no debt, lenders would be ready to offer you the rent. You would not even be required to obtain a loan. If you can’t believe in this, you can at least try it for once.
Categories: Credit Score Articles Tags: Credit Score, interest, need, possible, without
Where can I purchase all 3 of my credit reports without having to enroll in a membership program?
Question by Anthony N: Where can I purchase all 3 of my credit reports without having to enroll in a membership program?
I just need a one time report I dont want to enroll in a monthly thing.
WHAT!?!!? America is not a socialist nation? You’ve gotta be f***cking me! Thanks for the help guy! I never said I wanted it for free. i said where can I PURCHASE it without having to enroll in something.
Best answer:
Answer by cz73
You can do it at any of those free credit report sites, you just have to cancel it before they start charging you the monthly fee.
What do you think? Answer below!
Categories: Credit Score Questions Tags: Credit, enroll, having, membership, Program, purchase, Reports, without
What’s a good effective way to establish good credit without hurting your report?
Question by Mike D: What’s a good effective way to establish good credit without hurting your report?
with inquiries? I got a new car, but even though it’s under my name, my father co-signed since I have “limited credit”. I have my student loans and now my car loan to help establish credit, I know that will be big once it’s paid off……but I won’t to establish more WITHOUT having to worry about bringing my score down?
Will my score go down for a while or just temporarily?
Best answer:
Answer by Akbar B
Your score goes primarily by how promptly you make payments on your loans. If you are late your score will plummet like a rock, and if you pay on time it will keep shooting up. Good luck.
What do you think? Answer below!
Making Big Money Investing In Foreclosures Without Cash or Credit, 2nd Ed.
Making Big Money Investing In Foreclosures Without Cash or Credit, 2nd Ed.
The key to making money in real estate is finding motivated sellers. Financial trouble is often the single biggest motivator. From finding properties in foreclosure, to negotiating with sellers in financial distress, to reselling the properties to realize healthy profits, Making Big Money Investing in Foreclosures without Cash or Credit is a comprehensive money-making guide.
In this thoroughly updated guide, bestselling author Peter Conti shows real estate investors how to:
Understand the concepts involved in investing in foreclosures
Find a motivated seller
Structure the deals, including how to buy with little or nothing down
Negotiate with sellers in foreclosure, including how to overcome obstacles and close deals
Avoid costly contract pitfalls
Hold on to newly acquired properties and grow a portfolio for long-term equity build-up
Peter Conti pulls all the pieces of the transaction together into a step-by-step action plan, so that investors can apply what they have learned and start making money.
List Price: $ 18.95
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Categories: Credit Score Products Tags: cash, Credit, Foreclosures, Investing, Making, Money, without
Q&A: Are there ways to get “good credit” without owning a credit card?
Question by ssmith: Are there ways to get “good credit” without owning a credit card?
Because people say you need good credit to get loans for houses, etc., but then they say “don’t get a credit card, they are bad news”… so how can you get good credit other than by having a credit card?
P.S. I also already have a debit card, that works as a credit/debit card and I buy a lot of stuff online with it, which is always billed toward the credit feature… so does that mean I already have somewhat of a credit value built up?
Best answer:
Answer by cpaige517
I own a credit repair agency, ( one of the legit ones) The best thing to do is get a credit card and be responsible with the card. You can’t get credit in the future if you can not show lenders how you have handled your credit obligations in the past. The way to help your credit and be able to obtain credit whenever needed is to keep the balance of the credit card or line of credit you use under 30%. Use the card to fill up your car every two weeks. All you really need to do is show activity on the account and keep the balance relatively low. To answer your question, you can always piggy-back or mirror someone else credit. They could add you on as an authorized user to a credit card or line of credit that they already have. Be careful though because with some cards, once you’re on , you’re on and if that person defaults, it will show up on your credit as well. Rumor is that this trick is not going to work much longer because the credit bureaus have caught on and are going to stop including these type of accounts in their credit scoring process. Hope this helps.
Know better? Leave your own answer in the comments!
What Credit score do I need to get the best rate without a co-signer?
Question by David L: What Credit score do I need to get the best rate without a co-signer?
I have around $30K in private student loans that I had my brother co-sign with me on. I am paying Prime + 0% which is really nice, but I wanted to consolidate and use the LIBOR rate (which is lower than prime, I would save over $2000 in 10 years by dropping just 1% point). I have what I think is a very good credit score (760) and wanted to get the best rate so I could try to avoid asking my brother to co-sign again. Is my score high enough to go in alone without a co-signer and get the best rate? Thanks in advance.
Best answer:
Answer by spifiman1
Your score is fine. It depends on what your score is made up of.
Credit score is based on the following;
1. Pay history 35%
2. Time in bureau 15%
3. New credit 10%
4. Type of credit used 10%
5. Debt to income ratio 30%
As you can see 1, 2, and 5 are the most important as far as score is concerned.
The problem that people run into is that they have nothing to qualify them for what they are attempting to borrow money for. Lenders look for whats called “like credit” when they look at a application.
I see people every week with 700+ scores that are made up of nothing but 1 credit card with a $500.00 limit paid 15-times and a couple of student loans and I can’t get them approved to buy a car because they have no “like credit”.
Score is not everything no matter what anyone says.
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How do I refinance my house without a credit score?
Question by Luvinmylife2: How do I refinance my house without a credit score?
I have excellent credit and zero debt. My house is paid for, debt free, and I do not have any outstanding debt. I have had loans in the past, but I’ve paid them off. Therefore, I do not have a credit score. I want to tap into the equity on my house and take out a second mortgage on my home, but the bank says that I do not have a credit score. Does anyone have any ideas on how I can get a competitive rate with no score?
Best answer:
Answer by Major Mortgage Lender
Many mortgage loans do not require credit scores. Typically, FHA loans and loans provided by the Federal National Mortgage Association (Fannie Mae) do not require credit scores. In addition to your past credit history you may also provide alternative credit histories for these loans to help you qualify such as utilities, cellular phone bills, and car insurance. A consistent savings history is also acceptable as alternative credit.
You may be running into more problems by looking for a “second mortgage”. More often than not these mortgages are credit score sensitive. However, if you have a small locally owned bank who makes thier own decisions or a credit union you belong to coupled with NOT trying to take a high percentage of your equity out in cash you may find some takers.
What do you think? Answer below!
How do you lower your credit limit without lowering your overall credit score?
Question by Tim: How do you lower your credit limit without lowering your overall credit score?
I have only have one revolving credit card, and I have a very high credit score. Because of this overall score they subsequently increase my credit line, even though I don’t ask for or use this revolving line of credit. Question? I have been told if you ask for a credit line decrease they lower your overall credit score? Why? What can you do to minimize a lowered credit score?
Best answer:
Answer by missoctober003
I say keep the cards open because with a low balance on the card and a high limit it definitely makes your credit look better. Don’t worry about having that much credit in your name unless you plan on purchasing a loan from a bank. You aren’t using the card anyway, right?
Add your own answer in the comments!