What happens to my credit if I buy a house in full? Meaning NO MORTGAGE!!!?
Im buying a house this summer and paying in full so that I dont have to deal with a mortgage. Will it help my credit, hurt it or not even touch it? Id like to get good credit seeing as though I have none.
- Go with the flowLv 79 years agoFavorite Answer
It won't touch your credit.
You can delelop top scores without a mortgage.
Get a credit card.
Charge small things like food or gas and pay in full each month.
Never carry balances. It brings no benefit whatsoever to credit scores.
By paying in full you never pay interest and develop credit that will amaze future creditors.
A mix of credit is only 10% of your rating.
Don't worry about having 3 different loans for the sake of a credit score - never.
You can achieve top credit (with time) with just a credit card or two.
- KathleenLv 44 years ago
Well, if you are a student then you should wait until you graduate and get a job. If you have bad credit then you should work on cleaning that up by paying off anything that is outstanding and making all future payments on time or early. Personally, I would go into home ownership debt-free. Then, you need to save up a healthy emergency fund and a healthy down-payment, plus closing costs. I would try to have a minimum of 10% down and about 3% to 5% for closing costs. Finally, you need to figure out what your payment, taxes, insurance, home owner's dues, and upkeep will be on the house. Take that amount and put it into savings EVERY MONTH. You should soon have the funds mentioned a bove AND you will know you can make the payments. FYI - the mortgage crisis was caused by folks who WANT to buy a house instead of those who wereni a position to buy a house.
- 9 years ago
I don't know if you really need to worry about having credit if you don't even need it for a house! Maybe for a car, but other than that...
You can get a credit card and pay it off in full every month. That would help you establish credit.
- lightupthesky25Lv 59 years ago
Buying a house in cash will do nothing to your credit.
Having a mortgage that you pay in full, on time, every month will build your credit.
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- 9 years ago
If you want to build credit, take out a token mortgage, that is, a small dollar amount, short term (5 or 10-year), and small payments.
- Anonymous9 years ago
Um, nothing, you're not borrowing anything. You're not using any credit. Wow, common sense here...
- 9 years ago
Nothing. You have no loan, hence no credit was extended, hence it does nothing to your report.
- !Lv 79 years ago
Won't touch it. You aren't borrowing anything.