Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Need to build credit?

We applied for a mortgage. And we were told we didn't have enough credit. So we asked how to build it. She said, get a car loan. SO, we tried to get a car loan. BUT, we don't have enough credit. We asked how do we get it, he said, get a small personally loan. SO, we applied. BUT, we didn't have enough credit.

I own 2 businesses, I'm finishing school to open business #3. My DH works full time... But He has never been issued a credit score because he has never had credit of any kind. I only have one (out of the 3 agencies). I HAD a credit card once upon a time, but that was ages ago, and now can't get one because I "don't have enough credit history"...

HOW DO WE GET CREDIT???? If no one will extend it?? Income isn't the issue. The house we were looking to buy would cost us less a month even with taxes & insurance than the rent we pay... What do we do?

Answer Question
 
SabrinaMBowen

Asked by SabrinaMBowen at 10:29 AM on Jul. 23, 2009 in Money & Work

Level 40 (122,988 Credits)
Answers (9)
  • Captial one will give you a credit card even if you don't have credit. Granted you will have a very small credit limit, like maybe $250 - $300. That's what I did, but no matter how you go about it, it's going to take some time to build credit. Also, some mortgage companies will work with you if you have a "generous" cash down payment. Unfortunately, most of us don't have stacks of cash just laying around...lol. Anyway, all you can do is start small; low limit credit card, gas card, small loan w/ collateral, etc.
    HisMommySince07

    Answer by HisMommySince07 at 10:35 AM on Jul. 23, 2009

  • I had a Capital One card YEARS ago. Now, I can't get one at all because of lack of credit! Even the stores like Sears are telling me I need more credit history. I don't get it. I got a CC when I was 18 and broke. Now, as an adult with a good income, I can't get one?
    SabrinaMBowen

    Answer by SabrinaMBowen at 10:43 AM on Jul. 23, 2009

  • Credit it being tightened right now and it is harder to get a loan or credit card now. We have a very high credit score it is over 800. We still had a difficult time getting a home loan and had to jump through a few hoops to prove income. We had an easier time getting a loan when our credit was bad 10 years ago but that is why the housing market crashed getting a loan was too easy. I would get a secured card first you will have to put money into an account. Over time you will build a credit history. It will take a long time to build it up but in that time save money. You being a business owner will hurt you since self employed have a harder time proving a set income. So even when you get credit you have that hurdle to jump. Good luck to you.
    Anonymous

    Answer by Anonymous at 11:37 AM on Jul. 23, 2009

  • I feel so bad for you! The mortgage broker or loan officer should have NEVER taken your application knowing that you don't have an established credit history! And to tell you to get a car loan - They are more strict in alot of instances than mortgage companies. And for them to tell you to get a personal loan - They should KNOW BETTER!!! It is hardest to get a personal loan than anything else!!!

    What you need to establish credit is 3 revolving accounts reporting to all 3 bureau's monthly. I would try http://www.capitalone.com to start. Then after a month or two of using it just a little (maybe just for gas) and paying it off each month go and get a JC Penney or Kohls card and do the same thing. The key is to not pay the minimum payment - to pay at least three times the minimum amount - or better yet - pay them off every month.

    The bad news is that you are already going in negative because these people have run your credit a
    RutterMama

    Answer by RutterMama at 11:49 AM on Jul. 23, 2009

  • cont...

    These companies have already run your credit several times and that will impact your score negatively. For the mortgage loan - they run through at least one lender - if not two or three lenders. For the auto loan - they run it through at least five lenders - for the personal loan - who knows how many banks/lenders they run you through!

    So, I would do this - Get the cap one card, use it & pay it off EVERY MONTH - and ON TIME - for 2-3 months. Get a dept store card & continue to do the same with the cap one & the new dept store card. Then get another dept store card & do the same thing with all three for a few months. You should continue this for at least 6 months - if not 12 months - which will be better (mortgage lenders want a 12 month payment history).

    This is going to build your credit, be on time, never pay minimums (pay off every month) and be patient.

    Hope this helps!!

    God Bless
    RutterMama

    Answer by RutterMama at 11:54 AM on Jul. 23, 2009

  • If cap one won't approve you, do a google search for "guaranteed approval credit card to establish credit."
    RutterMama

    Answer by RutterMama at 11:57 AM on Jul. 23, 2009

  • What you need to do is find a bank that underwrites their own mortgages. This is going to likely be a smaller "hometown" type bank. Not having credit is not a negative, even though they make you feel like it is. When you get your mortgage underwritten, they will look at your income, your history with paying your utilities on time, if your percentage of income to mortgage payment is in line and they can write you a mortgage. It's just a matter of finding the right bank to work with. Don't go around trying to get "debt" in order to buy a house. In the meantime, save as much money as you can. When the bank sees that you have a 20% (or more) down payment saved, that makes it all easier to get underwritten. Good luck to you!
    slw123

    Answer by slw123 at 2:48 PM on Jul. 23, 2009

  • Start with a credit card from a retail store, like Old Navy (great for back to school; weekly coupons, etc.).
    rkoloms

    Answer by rkoloms at 2:58 PM on Jul. 23, 2009

  • LOOK NO FURTHER !!!!! TYPE THE WEB ADDRESS BELOW IN YOUR BROWER AND GET THE HELP YOU NEED RIGHT NOW!


    BadCreditDoctor.ws
    Patience654

    Answer by Patience654 at 4:41 PM on Jul. 23, 2009

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.