All the talk these days is about how credit scores affect your ability to get a loan, mortgage, or any type of financing. But is it really possible to buy a home if you have NO Credit Score?
It is possible if you’ll follow these four steps:
1. Find three or four bills that you pay at least quarterly. Examples include Car Insurance, Cell phone bill, Life Insurance, Cable, Internet, Apartment rent, Energy Bill, Phone bill, Medical Insurance Payment, etc. Any bill that you pay every month or at least quarterly will qualify.
2. Pay these bills using a check or by setting up an automatic bill payment through your bank or Credit Union.
3. Make the payments on time for 12 months and be sure not to bounce any checks or allow your account to go negative during that time. All pages will be reviewed and must show good cash management.
4. Collect 12 months of your bank statements (all numbered pages).
These 12 months of account statements will become your credit report if you have no credit score.
Once you have a mortgage on your credit report and have made payments on-time for a few months, you’ll not only have a credit score, but it will soon be a very good one.
Borrowing money to prove that you should be able to borrow money is no way to start out in life. So if you’re committed to living the rest of your life without consumer debt, then don’t start.
Keep good records and you’ll be just fine.