Finance tips: how to get a loan without a credit card
Improve your credit score with these alternative methods that do not require the use of credit cards.
Problem solved, USA TODAY
Most people planning to buy a home need mortgage…
Mortgage loans are usually very large, with homeowners borrowing hundreds of thousands of dollars. And most mortgages are paid back over 15, 20, or 30 years. This means that borrowers pay interest on their large loans for a very long time.
For all these reasons, it is important to have the greatest possible credit rating before applying for a home loan. This is because your loan can affect the interest rate that you charge. And even a small difference in the rate you pay can cost you tens of thousands of dollars in additional interest.
Most of the steps you take to improve your credit history can take time. This can be a problem if you are trying to buy a home now.
Fortunately, there are ways quickly build a loan… In fact, here are two that you may not have heard of. While they won’t suit everyone, they might be worth trying. Keep reading to learn more about writing goodwill letters and how to become an authorized user.
1. Write a letter of goodwill to remove negative information.
Even one late payment on your credit history can lead to a sharp drop in your credit rating. And if you have several late payments, this may be enough to make you lose the right to the most profitable mortgage rates…
If you find yourself showing one or two late payments from different lenders in your credit history, you may have the option to remove them from your record and quickly raise your score. You can just write goodwill letter and ask your creditors to remove the black marks from you.
This will not work in every case, as many lenders will not do this if you are legally late. However, if you are still a customer and paid on time in most cases but only had one or two problems, your lender may be more than willing to work with you.
Or, if you still have an outstanding balance, the lender may agree to remove the late payment record if you do a deal to pay your balance in full in exchange for doing so.
Getting late payments out of your record can be the quickest and best way to improve your credit, if you can.
2. Ask a loved one with a good reputation to make you an authorized user.
If you have a family member or friend with a solid credit history, they can help improve your score. Ask if they are considering adding you as authorized user on one of their accounts with a good reputation.
This will mean that the account appears on your own credit report. You will benefit from their timely payment record and their old accounts will help your average age of account history as longer credit history is better than shorter one. And they don’t even need to give you credit card access to do so.
It won’t help if your credit history contains a lot of negative information, but it can still matter. And it can definitely help you quickly create a credit profile that makes an impression. mortgage lenders if you don’t already have a long credit history of your own.
Both of these steps can make a big difference to your credit score. Give it a try if you’re hoping to get your mortgage as soon as possible and just need a little extra help to earn a great rate.
Historic opportunity to potentially save thousands on mortgages
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