Do I really need a credit score?

**farminclone** · 10-14-2012, 08:40 PM

I am graduating in the spring and looking to buy a home to move into immediately after graduation. I haven't ever had a credit card and don't have a credit score. It is my understanding that a credit score is absolutely necessary to buy a house and get a mortgage, is this true?

I will have 20% for a down payment and on a 15 year fixed rate mortgage my payments will be below 25% of my monthly income. (for the price range that I am looking at).

I guess I feel that if a college grad has no debt, the down payment in hand, and a stable income that easily supports the house payment, they should realize that I am a good money manager and they shouldn't need a credit score.

TIA for your comments!

**ISUAgronomist** · 10-14-2012, 08:41 PM

They'll pull your scores for sure.

20% down, low debt ratio, and small payment:income will help you.

Just speaking from previous buying experience.

The big banks will probably have issues approving you with a "lack of history" but a credit union or small town bank will likely be more willing to work with you especially with 20% up front.

**Rabbuk** · 10-14-2012, 08:43 PM

You could get a credit card and just make like one purchase a month on it and pay that in full. I've been doing that for about 4 years now.

**stateofmind** · 10-14-2012, 08:43 PM

That is an interesting case. I'd be surprised if you don't have a credit rating, even without credit cards. My guess is the right lender will give you a loan, but the interest rate may not be the best. If nothing else, get some credit cards and use them as credit. Build your credit AND earn some nice kickback perks. We use our card for everything we can, then pay it off every month. Every few months we deposit a $250 check for using it.

**TallKidIsTall** · 10-14-2012, 08:45 PM

good credit score equals lower interest rates

despite having a job and no student loan debt they have no idea how well you will manage your money once you do have debt to pay off

get a credit card

**IcSyU** · 10-14-2012, 08:45 PM

You're going to get nicked on the interest rate for the credit score, and your (probable) lack of W2s showing a solid income for the last two years.

And having all the things you listed doesn't necessarily make you a good money manager. A skeptical mortgage officer is going to say "well mommy and daddy made sure they were taken care of."

**Naughtius** · 10-14-2012, 08:45 PM

Sorry. Right or wrong, the system is set up so that you need a credit score. You might have to put your plans of home ownership on hold, unless maybe you could find a seller willing to sell on contract.

Otherwise, get some credit cards and pay them off every month.

It's a longshot, but would your parents be willing to cosign? That could work, but like I said, it's a longshot.

**kingcy** · 10-14-2012, 08:49 PM

Some advice from a bad experence I had. Make sure you are where you want to be and doing what you want to be doing before buying a home. You may think it at first but once you get out there it may not be the situation you thought it was.

**thatguy** · 10-14-2012, 08:50 PM

holy **** yes. Your Credit Score is pretty much the most important thing from here on out.

Also what college grad wants to buy a house right out of college? And for that matter what college grad has 20% down?

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**Let's Go State** · 10-14-2012, 08:51 PM

You could just focus on a small bank.... But in reality you will want to get a credit card and not have to mess around with the game. Put $100 on it and pay it off

.Btw- holy crap, way to go. I am very, very jealous!

**dabears32** · 10-14-2012, 08:52 PM

You want one, I have a good job, have no debt, etc but have never had a credit card so therefore no credit and had to pay an extra months rent deposit at my apartment.... just bs but get one and use it once a month and more importantly pay it off

**kingcy** · 10-14-2012, 08:54 PM

Go get a credit card right now, one with cash back, put what you buy on it, and pay it off every month.

**50244** · 10-14-2012, 08:55 PM

First go to annualcreditreport.com to get your free credit report. Check to see if it is accurate. Any file will be scored and there are many scores used in the industry but save your money and don't purchase a score

**Senolcyc** · 10-14-2012, 08:59 PM

First question any good banker will ask you is: where did you get all your money? You're graduating from college flush with cash? They'll need an explanation for that before they even hand you a pen.

Originally Posted by farminclone

I am graduating in the spring and looking to buy a home to move into immediately after graduation. I haven't ever had a credit card and don't have a credit score. It is my understanding that a credit score is absolutely necessary to buy a house and get a mortgage, is this true?

I will have 20% for a down payment and on a 15 year fixed rate mortgage my payments will be below 25% of my monthly income. (for the price range that I am looking at).

I guess I feel that if a college grad has no debt, the down payment in hand, and a stable income that easily supports the house payment, they should realize that I am a good money manager and they shouldn't need a credit score.

TIA for your comments!

**nj829** · 10-14-2012, 08:59 PM

Bad, No Credit Score Loans | Mortgage Info

I have spoke with Churchill in the past and they were great to work with, I would contact them to help with any questions, the person I worked with was super friendly and easy to ask questions/speak with.