Posted on: 28th Feb, 2012 11:38 am
My husband and I will start looking for our next home in June of 2013.
We've qualified for a mortgage and bought a home in the past, but things are very different now. We were offered our first loan in 2005 and they really pushed taking the full amount - $120,000. My H and I crunched the numbers and at 19 years old, we were only able to afford a home for around $70,000. We ended buying a $64,000 forclosure. All mortgage payments were made on time and we moved out in 2009. We've been renting in another state ever since.
My only open line of credit is a credit card that I share with my H. It has been open since 2004 and has been paid in full every month. I wasn't added to the credit card until 2009, though.
My worry is that I simply don't have enough credit history to get a mortgage. For our first I had no credit, but the bulk of our income, so it wasn't a problem. I understand that's out of the question now. I'm also a SAHM, so I'm not really sure I should even be added to the loan application!
The good news is we have absolutely no debt and barring some major downfall, will not when it's time to search for a loan. The minimum payment on our one credit card is $15, but it's paid in full every month. I'm unsure if that counts as a debt or not.
My question is, should I attempt to open another line of credit? From what I've been reading there needs to be 24 months of on-time payments or it will be seen as a negative. Is that correct? I wouldn't mind opening a store charge, but I'm reading conflicting views on store cards. I'm willing to make a big purchase and pay it off monthly as well.
Thanks for your help!
We've qualified for a mortgage and bought a home in the past, but things are very different now. We were offered our first loan in 2005 and they really pushed taking the full amount - $120,000. My H and I crunched the numbers and at 19 years old, we were only able to afford a home for around $70,000. We ended buying a $64,000 forclosure. All mortgage payments were made on time and we moved out in 2009. We've been renting in another state ever since.
My only open line of credit is a credit card that I share with my H. It has been open since 2004 and has been paid in full every month. I wasn't added to the credit card until 2009, though.
My worry is that I simply don't have enough credit history to get a mortgage. For our first I had no credit, but the bulk of our income, so it wasn't a problem. I understand that's out of the question now. I'm also a SAHM, so I'm not really sure I should even be added to the loan application!
The good news is we have absolutely no debt and barring some major downfall, will not when it's time to search for a loan. The minimum payment on our one credit card is $15, but it's paid in full every month. I'm unsure if that counts as a debt or not.
My question is, should I attempt to open another line of credit? From what I've been reading there needs to be 24 months of on-time payments or it will be seen as a negative. Is that correct? I wouldn't mind opening a store charge, but I'm reading conflicting views on store cards. I'm willing to make a big purchase and pay it off monthly as well.
Thanks for your help!
The easiest line of credit to open is a credit card. There are many credit cards who, for higher fees and interest rates, specifically target people with poor or no credit. Otherwise, if you open a line of credit with your bank (i.e. get a loan) you have to prove financial stability, and dependability.
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