Posted on: 09th Oct, 2013 03:12 am
I am 20 years old and have zero credit at present. Will I able to purchase a home in such a situation?
Hi Megan,
With zero credit, you will not be able to qualify for any kind of loan. You will have to build up your credit and then look out for a loan.
Take care
With zero credit, you will not be able to qualify for any kind of loan. You will have to build up your credit and then look out for a loan.
Take care
You need to start with building up your credit in order to qualify for the home loan. You can take out a secured credit card and use it responsibly. If you make timely payments on the card, then you can manage to build your good credit record.
Apart from a secured credit card, you can make timely payments towards your student loans to build a credible credit history which in turn will help you to have an impressive credit score. After your credit score has reached somewhere around 743, then you can apply for a mortgage to buy a house for yourself.
Since your credit score is zero, no lender will agree to give you a loan. This is because they have the fear that you might turn out to be a defaulter. As such, if you still want to purchase home, try to build credit. You can do so by applying for a card credit which is secured. Make sure you use it sensibly so as to build good credit record.
The above post has been made by Kate Kelley.