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31 with NO credit score...

We really want to buy a house this year... We have talked to a few mortgage companies and tried to get "pre-approved" for a mortgage so that we knew what we were looking at... We have gotten the same story from all of them. Although I have a good credit score and we have the income, my DH has never been issued a credit score - NONE AT ALL - which is worse than a low score in their minds. He's 31, and has never had a load, credit card or anything like that.

So how can we build him a credit score? We tried to get him a credit card, they all turned him down for "lack of credit history." We tried to get him a store card (Macy's, Sears, JCPenny's) they all turned him down for "lack of credit history." So, we tried to get him a loan - same deal! Then we tried to have him cosign on my mother's loan, which was also turned down... And because I'm a SAHM, I can't get a loan in MY name...

What can we do?

Answer Question
 
Anonymous

Asked by Anonymous at 2:17 PM on Jun. 11, 2010 in Money & Work

Answers (16)
  • you only have 1 real option. One of those credit cards, in his name only, where you pay like $150 or so to get it started
    hibbingmom

    Answer by hibbingmom at 2:18 PM on Jun. 11, 2010

  • You need to keep looking for a company that does manual approvals. There are some out there. You don't need a credit score. Get out the phone book and start calling. Don't just look for well known banks. You can also call the major real estate co. around you and see if they know anyone who does it.
    itsmesteph11

    Answer by itsmesteph11 at 2:22 PM on Jun. 11, 2010

  • Do you have a credit card you can add him to? Or can you open a new account as the primary and him as a secondary?
    Anonymous

    Answer by Anonymous at 2:24 PM on Jun. 11, 2010

  • Add him to one of your credit cards. Hasn't he ever bought a car or had student loans?
    2BlondeBabies

    Answer by 2BlondeBabies at 2:27 PM on Jun. 11, 2010

  • Everything goes on your credit now days Try to put a bill in his name.
    My DH was like that 15 years ago. We kept putting in for store card tell one gave us one in his name. Then we used it. tell a visa card would give him one. After that his credit got better.
    louise2

    Answer by louise2 at 2:27 PM on Jun. 11, 2010

  • OP here - All the utilities are in his name. But no, he's never had any kind of loans. We always paid cash for our cars and he had grants for school and didn't need loans.

    I only have on Card, and it's a Macy's card with a really low limit - I don't even know if I can add him to it... Anyone know?

    Also, we tried Credit Unions and Mortgage companies - we didn't talk to any Banks at all because we figured they would be harder to work with...
    Anonymous

    Answer by Anonymous at 2:31 PM on Jun. 11, 2010

  • Get a prepaid credit card to start with. After he uses the prepaid a while, he can get a "regular" credit card and start to build his credit that way. But most credit unions will take a credit history from utility companies if you can just get the utility to issue a statement saying you've never been late on your payments.
    missanc

    Answer by missanc at 3:14 PM on Jun. 11, 2010

  • Im sorry, why are you trying to get into debt? Cause a house is not an asset and a loan causes the national debt rate to go up.

    The bank has to borrow money on your promise from the government who has to print new money.

    You are better where you are.

    And of course they dont like that you dont have debt, cause that means they cant get paid to get more money on more debt.
    IraqiVetWife

    Answer by IraqiVetWife at 3:17 PM on Jun. 11, 2010

  • I think that is beautiful, really! There are banks out there that LOVE people with NO credit! They know that people with no credit are RESPONSIBLE and only buy the things that they have money for. Do not let your husband feel ashamed of this situation, it's awesome. What you are looking for is a bank that UNDERWRITES their own mortgages. They will take into account that he does pay his rent and other bills on time. You will need at least a 20% down payment to show good faith. One company that I know of that does their own underwriting is Churchill mortgages, they are recommended by Dave Ramsey. You can apply with them online and also read about getting a mortgage with no credit score.

    Don't get in debt to 'help' your husband's credit score! He's a smart man, don't let him start doubting that now. Look into Dave Ramsey also.
    slw123

    Answer by slw123 at 3:17 PM on Jun. 11, 2010

  • Iraqy - How are we better where we are? We are paying $500 a month to rent a home that isn't ours... The house we wanted was going to cost us about $300 a month ($30K for 20 yrs) and we would OWN it... And yes, that included all the taxes and everything... How is paying someone else almost double what we would pay to own a good thing? All we are doing is making someone else rich... I'm sorry, but that's NOT a good thing! Paying it back isn't an issue, like I said we are paying double what we are looking for - around here $30K is about average for a 3Br - which is what we now need... The house we live in is only 2...

    I'm sorry, but you can rent if you would like to, but I want something better for my family!
    Anonymous

    Answer by Anonymous at 4:10 PM on Jun. 11, 2010

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