OfflineQuestion about Credit and buying a house all cash.
I been trying to get a Credit card that i can use just for repairs when needed. I want something with a high limit and low interest. I have found a few cards i want, applied for the two of them and declined both times.
The reason
"Does not show ownership of real estate"
My question is i just bought my first house, it was all cash still waiting on the closing part. Does this show on my credit as owning a home though?
I called Capitol one today about one offer and told them the situation and the lady and her manager were not sure - she said the applications they do for business class cards they person or company is making mortgage payments not buying in full cash.
Any help on this would be great sorry for the run on question
Your credit (fico) score is based on accounts reported to the three main credit reporting agencies. It shows your account & when the bill was paid, 30, 60, 90, or 120 days.
Paying cash for a house does not show up on your report, that's why people with no money, bad credit or no credit or smart investors try to obtain owner financing.
Remember if you have no credit, a bank is more reluctant to give out a creit card, even with a small line of credit. Your best bet would be to try to finance your free & clear house, a mortage is a secured by you putting up the home as calateral, the same as a car loan. This way it shows up on your credit report, then apply for credit cards.
Hi David,
It is said cash is king........but not always......you need to leave a credit trail so the banks, and credit card companies have some thing to go by.
If you purchase a car, boat, house in cash, it will not show up on your credit report.
Just a suggestion, but maybe you should have watched Phil Tirone's webinar last week......He is a credit expert, and a good friend of Deans.
Regards,
Sharon
Life Hands You Lemons.......Make Lemonade......
It was once said, “religion is designed to comfort the afflicted and to afflict the comfortable.”
In your situation where you paid cash for the property. Simply get a loan for the property. This can be a private loan or a bank loan. Let it sit for a few months, make several payments then take the money you received for the loan and pay it off again.
This will allow you to get the credit needed and get back to a paid off house. Indeed you will pay for some of the interest but you will now have a loan on your credit. Just remember that whichever bank or private lender you use they must report to the credit companies.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125