I have no credit
 

My wife and I are trying to borrow money against a home that is in my name, I have no credit score and my wife's is 830. The problem is that the house is not in her name so they will not issue a loan. She has to have owned the house for 6 months before we can do a loan.

How do I build a credit score without borrowing money?

This is really inconvenient.

A couple years ago, you'd have no problem

That's really weird. My dad and mom have NEVER purchased anything on credit, not even a house and they have credit scores.

Do you have a mortgage on the home?

Do you have a credit card?

Do you have bills in your name?

Do you have a car loan?

If yes to any of the above, you have a credit score. Go to a different bank, they're jerking you around or you are dealing with an idiot.

no score with any of the big 3 ?
even long dead and fictional folks have a score..

Rika

no

no

yes a cell phone and Dish network

no

You have a score, but without any kind of credit history, it's probably very low.

Even taking out a credit card and not using it would boost your credit score.

The lady from the bank is going to check the other 2. The bank had checked experian.

Go to a small local bank or credit union that manually underwrites loans and doesn't rely on FICO. Why no utilities in your name?

We are with a local small bank.

My wife and I live in a state park and the utilities are in the states name.

that's what loan sharks are for. Tough to get equity loans ever since the equity fell out of everything. Try a mortgage broker, if the house is free and clear you should be able to get a loan.

Wow, with no credit cards how do you buy parts from Pelican? :)

Are you dealing with the bank that you have a checking or savings account with?

My MIL was in a similar situation. She wanted to go on a vacation to Ireland. She applied for a credit card and he had no credit history. They had always paid for things with a check and never borrowed money. She went down to the bank and talked to the bank president. She had been his grade school teacher many years before. The bank issued her a CC with no problems once a person with brains looked at her bank accounts.

I use my wife's card.

No, I have all the business accounts with this bank. This is the bank I barrow money from.


I could get the money as long as I didn't want a 20 year fixed rate. The bank will do 7.5% for 10 years and I want 4.75% for 20 years. With this there are more hurdles, Fannie Mae.

Peppy-
Maybe take that 10 year @ 7.5% and refi out of it after 24 months into an FHA product (620 min, or zero score required depending on LTV and co borrower)
Or refinance with your local bank product.

Actually there may still be a few FHA products where no score is required...check it out with a local FHA approved broker, Wells Fargo might offer them as well!
Again, the fact you own a free and clear home and your wife has solid credit history is the key.

I'm in CA so I can't really help with NC specifics

With both of you on the loan your credit score will improve drastically as long as you manage your finances responsibly, there really isn't a quick fix for this anymore.

Just thinking out of the box here:
With you doing all of your business accounts through your local bank they really ought to think a little out of the box for you, if:

1) You have a solid history with your business accounts (zero nsf, carry positive balances, savings balance, business equity etc)

2) Verifiable income

3) Debt to income ratios within:
25% front end (gross income vs purposed mortgage payment)
36% Back end
(gross income vs all monthly debt liability incl. purposed mortgage payment+tax insurance)

4) Collateral: your free & clear home is 1st rate collateral

5) your wife has a solid credit history supporting her score

Remember the 3 C's of lending:
Credit-Capability-Collateral
- - - - - - - - - - --
Otherwise maybe having your wife put you on her credit cards would help. This is/was frowned upon due to many people manipulating scores to qualify for loans....Oh wait, never mind :rolleyes:


The cell service payment history should show on your credit report in a positive way, however if that is all you have it may not (should not) be enough to suffice a credit score YMMV

Good Luck and PM me if I can help!

SmileWavy

Thanks everyone, if I fail on the other two credit reports I will do a short term not and refinance after the six month period.

You need a new bank that can look outside of a stupid number.

Wow, I co-signed a used car loan for my 20 y/o son who had NO credit. Mine was 830 or so on all three credit bureaus. No expert, but get a credit card of any kind, pay it off, buy a car, make payments, buy a house, make payments, don't be late on anything, don't get too many credit cards.

I did buy cars a 911 and a jetta financed both with this bank both were 3 year notes and I paid the 911 off in 26 months and the jetta in 18 months. I just haven't borrowed anything since.

I think you many be right.

That financing should be on your credit report! If it isn't you should ask them to report it to the credit bureaus as they will definitely solve your credit score! Seriously!

The bank told me if it is over 2 years old there is no score.

Hmmm
It's not necessarily the "score" but rather your payment history that is important, your payment history, type of financing and length of payment history are what factor in to a score.

Sounds to me like they never reported it to the bureaus? If so they did you wrong, as without a doubt if you had ever missed a payment they would have reported that to the bureaus!

Credit financing, derogatory payment history (not that I'm saying you have any), liens, credit inquiries, open accounts etc all stay on your report for at least 7 years.

No one knows exactly the metrics the bureaus use for generating "scores" although there is a pretty good idea. With mortgage loans impacting the most, car loans, credit cards and education loans falling in 2nd. Cell accounts, Satellite TV etc falling in at the least supportive of credit worthiness...

Anyway, If they are telling you because your closed financing is older then 2 years and they never reported it, so there is no point in them reporting it now, that's one thing. (they still should have been reporting this all along)

However if you've had this financing with them payed off or not within the last 2 years and they didn't report it and are refusing to report it I call BS! Talk to the Bank Manager as they can report it. Are they willing to lose a good customer over this? Their answer will tell you a lot about them.

We use a tool called rapid re-score where we work with the credit provider and the bureaus to update, correct add credit history and/or correct mistakes on credit reports. Very effective and completely legit. Your broker has access to this through the company they use to pull credit reports.

Look into this, regardless if your loans with them were closed more then 2 years ago..

This is not good. They should have been reporting this to the bureaus from the moment they received your first payment on your car financing, no excuses!

I agree, unless they are willing to make things right, it's time for a new bank/credit union..

Thanks 911Freak, needed this kind of info.