In rare cases some customers do not have a credit score for a bureau to disclose. This usually occurs in young home buyers. That is because some people do not get a credit card or some type of loan while in high school or college. It is a great idea for parents to open a small account with their children on the account to get them started on building a credit history.
If there is no score, then lenders have to manually create a credit score. This is done by having a customer report to the loan officer at least 4 accounts they have had for at least 12 months with a good paying history. Some popular examples are rent payments, car payments, cell phone payments, a gym membership payment, or any other monthly payment made on an account for 12 months or more.
The key is to avoid the manual score by the lender. If you are thinking of buying a home within the next year, be prepared. Open up a credit card account. Buy a cell phone. Become a member that requires a monthly payment. Rent an apartment, house, duplex, or town home for at least a year. Ask a parent to add you to a credit card account or loan payment account.
Buying a home will be one of the most exciting and biggest investments you will make in life. When there comes a time that a home that you love and can afford becomes available, be prepared by having your financing options in line first. It all starts with your credit score.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
If there is no score, then lenders have to manually create a credit score. This is done by having a customer report to the loan officer at least 4 accounts they have had for at least 12 months with a good paying history. Some popular examples are rent payments, car payments, cell phone payments, a gym membership payment, or any other monthly payment made on an account for 12 months or more.
The key is to avoid the manual score by the lender. If you are thinking of buying a home within the next year, be prepared. Open up a credit card account. Buy a cell phone. Become a member that requires a monthly payment. Rent an apartment, house, duplex, or town home for at least a year. Ask a parent to add you to a credit card account or loan payment account.
Buying a home will be one of the most exciting and biggest investments you will make in life. When there comes a time that a home that you love and can afford becomes available, be prepared by having your financing options in line first. It all starts with your credit score.
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
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