I am a single mom with 2 grown sons at home, both with medical issues. I was raised with the belief that if you didn’t have the cash, you didn’t need it in the first place. So, no credit cards. I had one, years ago, just to see what it was like. NEVER again would I have one. I got into to debt too easy and it was difficult to get out of. I have been renting a house for 20+ years and have the opportunity to buy a house that is within my budget. my credit is not all that great but I have been told I HAVE to have a credit card in order to buy this house. WHY??? Why am I being forced to go against the way I was raised and do something I don’t believe in??? I have already taken out a loan thru my bank to help this process, but didn’t want to do that, either. I think that I may have 1 or 2 more payments left…? When I talked with the bank loan officer, HE was the one who said the paying the loan wasn’t the problem that I had ample income. I pay my utilities every month I even managed to buy a car thru a car dealership a few years ago…but none of this seems to matter. WHY DO I NEED A CREDIT CARD…???
There is different types of credit, perhaps your credit is lacking this type. I realize it’s against what you want to do, but there really isn’t much harm in getting one and not using it. Or use it for the groceries, then go home and pay it off with the grocery money the next day.
I had to jump through all sorts of hoops to buy a house. It was worth it. Then I went back to managing things the way I want to.
Only reason I can think of is that you dont have enough credit usage on your credit report. How was your score?
It’s possible that you don’t have enough debt to establish a credit score (paying monthly utility bills doesn’t usually count toward your score)… we found that out last March when buying new vehicles… my husband had no credit, as it turns out, since he retired. And no CC debt since he doesn’t have a card in his name, the one we have is only in my name.
I would ask the mortgage lender about this requirement and ask how to get around it since you do not want a credit card. I agree with you, it seems ludicrous… even if you take out a credit card now, you won’t have any payment history on it to contribute toward your credit score, which is even more perplexing.
It appears an FHA loan might be something for you to consider? This link has information about the FHA loan which may not require a credit card and may work for folks with little credit? This is not a recommendation to use the company presenting the info, just for the info itself. https://themortgagereports.com…n-assumable-203k-mip
Several years ago, I wanted to establish my own credit. At the time, all the credit cards were in my husbands (now ex) name. I opened a Penney’s credit card, bought something for $10. Paid it off as soon as I got my bill and voila! I had A-1 credit. All the retailers want you to have a card so they make it easy. This worked for me all those years ago, hope it works for you. Good luck!
Not all loan officers are created equal! Is there another loan officer at another bank or a mortgage broker you can talk to? You will likely be charged to pull another credit report by the bank, or you could pull your own thru Experian, Equifax, or TransUnion? You are allowed 1 free credit report every year with each of the “Big 3” and if you are being denied a loan based on the status of your credit report you may pull one for free, as well.
If you pull your own report you can hand carry a copy with you to another lender appointment, just to get a 2nd opinion of the need to have a credit card, likely avoiding the bank’s fee to pull the report. Keep in mind, if you actually apply for the loan again elsewhere, the lender will still have to pull their own report, meaning a fee for you now or later.
You my have to open a credit line or perhaps a secured credit card would be an acceptable compromise.