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Started By
Message
Credit and first time home buying.
Posted on 2/14/16 at 8:56 am
Posted on 2/14/16 at 8:56 am
Alright MT, I come to you for some advice.
Just graduated college and have never had a credit card
so I don't have any credit...
Just got my first job last month paying a little over 50 a year.
Right now I'm living with my parents rent free and will probably stay here for about a year to save up and build some credit.
I have a couple questions for you.
What would be the best route to getting a first credit card?
Should I rent my first house or buy?
How long would it take to build enough credit to buy a house?
Throw in that I only have a couple thousand in student loans.
These might be stupid questions but my parents don't really talk about finances with me and never have so I turn to the web.
Just graduated college and have never had a credit card
so I don't have any credit... Just got my first job last month paying a little over 50 a year.
Right now I'm living with my parents rent free and will probably stay here for about a year to save up and build some credit.
I have a couple questions for you.
What would be the best route to getting a first credit card?
Should I rent my first house or buy?
How long would it take to build enough credit to buy a house?
Throw in that I only have a couple thousand in student loans.
These might be stupid questions but my parents don't really talk about finances with me and never have so I turn to the web.
6
Posted on 2/14/16 at 9:45 am to DeboseKnows
1. See if you can get approved for a card like Chase Freedom, if not you will likely need to get a secured credit card. Talk to someone at which ever bank you use about a secured credit card if you aren't able to get approved for the Freedom.
2. Depends, are you single or married? Do you anticipate living in your city permanently or for at least 3+ years? Zillow.com has the projected break even times for many cities in their website. So if you plan to own for longer than the break even time it makes sense.
3. I'd think a year would've enough time with the student loans and credit card.
Depending on your degree, job, and income you may be able to qualify for a mortgage from SoFi without a high credit score. I don't think they look at it.
2. Depends, are you single or married? Do you anticipate living in your city permanently or for at least 3+ years? Zillow.com has the projected break even times for many cities in their website. So if you plan to own for longer than the break even time it makes sense.
3. I'd think a year would've enough time with the student loans and credit card.
Depending on your degree, job, and income you may be able to qualify for a mortgage from SoFi without a high credit score. I don't think they look at it.
Posted on 2/14/16 at 9:55 am to DeboseKnows
Apply for a credit card with good rewards that fits your needs. I prefer cash back or airline miles. Request a credit limit increase once allowed. Always payback entire balance to avoid paying interest.
Depends. I believe that now is a good time to buy a house so if you have good job security and do not foresee a move in your 5+ year future then I would buy. Just don't buy more house than you need.
If you save enough money for a down payment and improve your credit score for an entire year, I bet you could buy a house. If I were you, I'd save X amount per month as if that were going to housing costs, regardless of whether you decide to rent or buy. Take advantage of living with your parents.
Depends. I believe that now is a good time to buy a house so if you have good job security and do not foresee a move in your 5+ year future then I would buy. Just don't buy more house than you need.
If you save enough money for a down payment and improve your credit score for an entire year, I bet you could buy a house. If I were you, I'd save X amount per month as if that were going to housing costs, regardless of whether you decide to rent or buy. Take advantage of living with your parents.
Posted on 2/14/16 at 10:21 am to DeboseKnows
quote:
What would be the best route to getting a first credit card?
Go to a local credit union and apply for a card. Most will give you around $500 limit.
quote:
Should I rent my first house or buy?
Buying is always preferred, however due to your limited credit, it may be difficult. At this point, a substantial down payment would be required.
quote:
How long would it take to build enough credit to buy a house?
Really depends...you need to start building credit immediately. Do you have a vehicle? If not, maybe try to find a First Time Buyer's program to help get you started. First Time Buyer Program
Posted on 2/14/16 at 11:36 am to DeboseKnows
Another option available to you would be to try to go through NACA for a loan. It's a government backed program that doesn't consider your credit when underwriting.
From what I understand, the process can be rather lengthy (they require you to "pay" the mortgage for several months- the funds must stay in your account -so they know you can afford it in your budget, for example) and they require monthly meetings with an advisor.
I had considered going to one of their monthly informational meetings myself, but ended up being able to get preapproved for a rural housing loan.
I wouldn't think you would have trouble getting a credit card- have you applied before and gotten denied, or just never tried? At the very least get a gas card and use it and pay off each month in lieu of using your debit card at the pump. If you have savings, taking out a loan with your bank using cash in savings as collateral would be another option.
From what I understand, the process can be rather lengthy (they require you to "pay" the mortgage for several months- the funds must stay in your account -so they know you can afford it in your budget, for example) and they require monthly meetings with an advisor.
I had considered going to one of their monthly informational meetings myself, but ended up being able to get preapproved for a rural housing loan.
I wouldn't think you would have trouble getting a credit card- have you applied before and gotten denied, or just never tried? At the very least get a gas card and use it and pay off each month in lieu of using your debit card at the pump. If you have savings, taking out a loan with your bank using cash in savings as collateral would be another option.
Posted on 2/14/16 at 11:44 am to nahtanojc
I have a truck that's paid off.
And my company pays for gas so I use the company card for that.
Never been denied I have just never applied for one. Thanks for the advice so far guys. I'm gonna go to the bank tomorrow or Tuesday and talk about a credit card see where that gets me.
And my company pays for gas so I use the company card for that.
Never been denied I have just never applied for one. Thanks for the advice so far guys. I'm gonna go to the bank tomorrow or Tuesday and talk about a credit card see where that gets me.
Posted on 2/14/16 at 11:45 am to Beerinthepocket
To answer more questions.
Single
I see myself in this same city for at least 5 years. Even if I get a promotion I will still be based out of the same area.
Single
I see myself in this same city for at least 5 years. Even if I get a promotion I will still be based out of the same area.
Posted on 2/14/16 at 7:28 pm to DeboseKnows
Have you ever lived away from your parents? I would rent at first, just to get a small sample on what living by yourself is like first.
Posted on 2/14/16 at 8:08 pm to Jcorye1
Lived away for 4 years in college.
Posted on 2/14/16 at 8:08 pm to DeboseKnows
Paying off the student loans would be great for your credit. I would definitely wait until you have a w2 from your job showing actual income before approaching a bank but once you do, they will very likely give you a loan based on income and debt ratio. I bought my first house with very little credit history and almost no income reported.
Posted on 2/14/16 at 8:30 pm to BayouWrangler
I didn't get a credit card till I got married at 28. But my credit was great bc I paid my student loans on time and my truck note on time. There are other ways to build your credit, I guess it depends on how long you want to wait. After 2 years of paying the minimum on my student loans I went to buy my truck not knowing what my credit was and it came it at 740.
Posted on 2/15/16 at 9:47 am to HamCandy
I delayed my student loan payments, and am now using them to build my credit back up. Save for a good down payment.
Posted on 2/15/16 at 10:02 am to DeboseKnows
you need at least 2 tradelines(credit card and student loans count) they need to be active for at least 1 yr before you try and buy a house. It is very hard to get approved for a house with credit that is less than 1yr old.
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