Q&A: Am I likely to receive a loan on a house if I have no credit established, but pay a large portion up front?
Question by Oliver: Am I likely to recieve a loan on a house if I have no credit established, but pay a large portion up front?
For example: if the house were around 90k, and I placed 40k down, would I be likely to receive the loan for the remaining 50? (30 year fixed)
Best answer:
Answer by Ocean Queen
With a big down payment like that you can get approved, but if your credit is in bad shape you can be looking at higher interest rates and higher monthly payments. Make sure to ask all these questions prior. The market is slow so it can go either way. Good luck.
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Categories: Credit Score Questions Tags: Credit, established, front, House, Large, likely, Loan, portion, recieve
How long does it take to get “established credit”?
Question by merciless_megan: How long does it take to get “established credit”?
I have tried to get financed for a car, but can’t because I have no established credit. So I thought it would be a good idea to get a basic credit card and just use it to build my credit. By doing this, how long would it take to get “established” credit, so I would at least have some sort of credit on my credit report? How long does it take to get good credit?
Best answer:
Answer by bdancer222
Use the credit card and pay the balance in full every month. Do not carry balances. There is absolutely no extra advantage to carry balances and making small payments. It does nothing extra for your credit. It just costs interest.
You have to use that new credit card for at least 6 months before it even counts in your FICO score. In a year, you might have a fair score, but still a very limited history and still not qualify for a car loan with good rates. It takes time to build good credit.
You will have better luck getting a car loan if you have a large down payment. Also, you might check into joining a credit union. You can usually get better rates and they are more likely to extend a loan to someone with limited credit history.
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Categories: Credit Score Questions Tags: Credit, established, long, Take