The first thing most lenders look at when you want to buy a home is your credit history. If you don’t have credit card debt or take out loans, your credit history might be harder to establish. That could make it tough to find a lender who will work with you. But don’t give up, it’s not impossible.
The first thing most lenders look at when you want to buy a home is your credit history. Most people have traditional lines of credit such as credit cards, auto loans or a current mortgage that form a track record of how they manage debt. But if you don’t have credit card debt or take out loans, your credit history might be harder to establish. That could make it tough to find a lender who will work with you.
But don’t give up, it’s not impossible. If you’ve been renting a home, paying utilities, watching cable TV or talking on a cell phone for more than six months — and making those payments on time — that history can be used to build your credit score. The only catch is that your landlord or service provider has to report payments to one of the three main credit reporting agencies.
Learn more about:
- Evaluating nontraditional credit history
- Consider a government loan
- No delinquency on rental payments
- Turn to smaller lenders
- Next steps
Read more here.
