What to Do When You Have No Credit

If you have no credit, and you aren’t sure where to start, you can become a co-applicant on an account, or in other words be added to someone’s account who has established credit. While I don’t encourage making a habit out of this, it can help you get something on your credit history. There is risk in this, as anything could happen at any time, an no one is exempt from job loss or hard times. Being a primary applicant you can’t remove yourself since you originally applied for the account in your name, but you can always be removed as a co-applicant or secondary borrower on a credit card. Remember, just paying your bills on time is not the only way to keep your credit healthy. You can also drive your credit score down by maxing out your lines of credit.




Once you are able to get some credit, you will able to move toward paving the way to your fulfillment of the FHA loan requirements. The guidelines are always subject to change, and they have become a little more stringent than they were a few years ago, so keeping up with the knowledge of the market is always essential as well. Avoid the mistakes that can affect your buying power for years to come. Making bad credit decisions can limit your options, so think of credit as a tool, not a joke.



Your credit score will also need to meet the FHA loan requirements if you want to buy a home. If you are a first-time homebuyer then you will need to plan on how you much money you can bring as a down payment. With a credit score of 620 or better, you can start with as little as 3.5% down, but if your score is 580 or better you will need to come up with at least 10% down. This was a fairly recent change, but rightfully so. The idea behind this change was to get the homeowner to invest more into the home upfront. Statistics show that those who put more down on the home are less likely to default on their loan.



For more information on credit repair, and steps to getting your FHA loan today, visit http://www.fhaloansnow.net/.

-Mayer Dallal