STUPID Credit Reports?

Question

Can someone please tell me why I read on here that when buying a house they should not pull you and your spouses credit together??? My credit is better then his but he makes like 4 times the amount that I do. So in order to get this house that I found we need his income on the loan????

Answer 1

Credit reports were not created by the banking industry. A long time ago any Joe could walk into his town and get things on credit. Why? Because towns were small and everyone knew everyone. Store owners and banks knew you and they knew your reputation for paying back money. AS the world became larger businesses had to find a way to inquire about a persons credit. So what happened is a credit bureau was created to hold peoples credit on a file and companys could access the database to check on a person. Then make their decision as to whether or not to extend credit to that person. It is not a scam and it is not there to hurt a person. People have bad credit becasue they abuse their credit. If there is a discrepency on a persons credit file they have every right to contact the bureau and begin a dispute - for free. As for the answer to your question - you may want to check with the company you are getting the mortgage through - and if you do not get a good answer go higher in the company. It is very logical that they would need to check both partners credit - you are right. If both you and your spouses names are going to be on the mortgage, then yes both parties credit needs to be checked. I worked for a credit bureau and that is what happens. I had many people who were checking the file to make sure both his and her credit was checked by the mortgage comp.good luck..

Answer 2

With a married couple, both partners credit can be figured into the approval process. You may need to deal with the negative information on his credit history in order to report his additional income. Traditionally bankers don't want to offer loans which create debt repayments greater than 36% of monthly income, and they don't want your house payment to be greater than 28% of your monthly income. You have great credit, but your income is lower than his. If you could meet the credit and debt-to-income ratio on the home loan, then by all means, get the loan in your name only. His income is higher, but he has poor credit. If the home you are buying depends upon his income being available to you, then his credit has to be considered.

Answer 3

Credit reports are a scam by the banking industry to raise interest. Ever wonder why something bad goes on there (sometimes twice) but pay offs never show up ..