May I obtain a loan without a consumer credit card history?
How should I go about obtaining a loan ? How should I go about this procedure If I have chosen all this while to not have credit cards at all so I don’t get any debt.
Prelim. story: Like I said I haven’t ever had credit since I did not ever need or want this until now at all and was living with a relative and providing them living assistance and they had enough money for us both. I am a twenty something legal US citizen. If I am not able to get loan to buy a home at all under any circumstances I hardly see this as fair or sensible and seems they want to punish someone and throw them into the consumer rat race so they’ll have the chance of screwing up more. Are there any manners to get a loan without having built a credit history. I am so proud of myself for not having gotten involved with debt… So do I have to get involved with the risk of late fees and get a credit card just for show for the loan to be approved?
If not then how long does credit history have to be built exactly and also does this be the same by each state?
Intentions are For a land that has a small house loan. Don’t say any smart ellicky comments to me about the current state of the economy either. thanks. I know how “bad” the economy be. I don’t wan to not involved with credit card usage to build “hype” and record of up for myself longer than I have to.
If not a credit card then what types of credit do I need then?
March 10th, 2010 at 5:55 pm
Congratulations that you haven’t racked in any debt at your age! However you have to know that there is such thing as “good debt.” Consumer rat race or not, reality is that you need a credit history in order to have a FICO score for lenders to look at. You have to put yourself on the “financial map” in order to borrow any money, buy a car or home or start your own company. Although there’s a slim possibility that you may be granted a loan without a FICO score (your “credit score”), you may be given a higher interest rate which means more money for to be paying off in the long run.
So what does this mean? Unfortunately (since you seem very adamant against them), getting a credit card or department store card would be a really good option. If you’ve been doing well so far with your own money, balancing your financial life with a credit card shouldn’t be an issue. Use the credit card and pay on time. That’s all it is. So instead of using your money right away, use your credit card to pay for it. Then pay your credit card bill with the money you would’ve used to buy [insert item here] anyway. It’s not that bad and you won’t have to worry about late fees if you paid on time. At the very least, you can pay the minimum amount your credit card asks you for. It will put interest on your balance, yes, but when lenders look at your FICO score, your score and history will reflect that you are financially responsible and pay your bills on time. That’s all it is.
OR. If you still don’t want to set up your own credit, you can always get a co-signer to sign the loan with you. However this can mean that you’d need to get a co-signer every time you needed to make a big investment (ie car, home, another loan).
They look at other things outside of your credit history such as employment history, etc. Check this site out for more info: http://financialplan.about.com/od/creditdebtmanagement/a/nocredit.htm
March 11th, 2010 at 12:10 am
You don’t have to have credit cards, but you will need some kind of credit history.
March 11th, 2010 at 12:58 am
Without a credit card, you would provide receipts for Electric bills, Water bills, Cable tv, Rent, car payments. Those are a great indicator of your creditworthiness..
March 11th, 2010 at 1:10 am
Your just the type of person every loan company is looking for. start that building right now, the loan sharks will be sure to find you,
March 11th, 2010 at 1:10 am
You might try prosper.com, its a peer lending site.