Establish Credit Without Using Credit: Most Important Questions Answered

Although the credit companies and credit rating agencies might want you to believe that the credit score is the beginning and the end of your life, it is simply not true. There are plenty of ways to live without a credit score at all. This lifestyle simply takes a little more foresight and planning.

The only reason that people are afraid of having a bad credit score (or of having no credit score at all) is because they believe it will prohibit them from accessing large assets like houses and cars. This is also not true. Below we will discuss some of the major questions that people have when it comes to credit and large assets.One – How can I obtain housing without credit?In order to rent an apartment, you will usually have to provide three months worth of rent up front. Most of them will try to ask you for credit score, but as long as you have the money in place, credit becomes much less important. If you do not have a credit score, simply tell him that you do not use credit in your life.  They may want to do a comprehensive background searchon you.In place of a credit score, many rental agents will accept a referral from your previous landlord. Although it may be a bit more difficult to find your first piece of housing, someone will eventually want to work with you.Two – How do I get a mortgage with or no credit?

When you do not have credit and you’re trying to take out a mortgage, you should focus on having as large of a down payment as possible. You should also get rental referrals and have your job history prepared to show. The more stable that your entire life looks, the less relevant that your credit history will become.

There are also mortgage companies that use a process that is known as “manual underwriting.” Another way to refer to this process is “no credit score” lending. Although these winning companies do not have as much exposure as the traditional types of lending companies, you should know that they are there and that they are available for you to use.

Three – Will I be able to get a job without good credit?

More and more employers are trying to take a look at the credit score of their potential employees before hiring. Although this is becoming a more accepted process, if you do not have a credit score, there is no way that an employer can hold this against you.

Simply explain that you do not use credit in your life. Your potential employer will likely then have questions about how you compensate for the lack of credit. As long as you can give an answer that shows you are organized about your finances, this should not be a strike against you.

Remember that all of these procedures are for people who do not have a credit score at all. For those people with a bad credit score, other measures should be taken to repair any financial damage.