Many of you advocate living debt free and paying cash for everything. So do I. I paid cash for my car and have no debt other than a mortgage (which I even pay a little extra on each month, though not at the expense of retirement and other savings).
But I qualified for that mortgage--at a great rate, right out of college, with no work history--largely because of my great credit score. Which I got by having credit cards. I use them only for big purchases and always pay them off, but I established a credit history and earned cash rewards in the meantime.
Like it or not, your credit score is the #1 thing any lender will consider. You are fooling yourselves if you thing it will be easy to get a mortgage with no credit--and you'll pay way higher closing costs/fees in addition to a higher rate if you manage to find a manual underwriter who will. Also, employers and even apartments now regularly check the credit of applicants.
Why try to fight the system?
2007-03-01
06:13:22
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6 answers
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asked by
lizzgeorge
4