Ed's Chesprocott Region Blog: Having No Credit is only Slightly Better than Having Poor Credit

Having No Credit is only Slightly Better than Having Poor Credit

Having No Credit is only Slightly Better than Having Poor Credit

I have a couple here in the Central Connecticut area that are working to get into a home and unfortunately for them, the wife's credit has issues that have her in the low 500's in score and her husband is a cash only person. They have strong jobs and make enough money such that they save and for him, cash is always there for when the wants to buy something.

The down side is that cash is always there for when he wants to buy something, and as such he has no hard record to account for their viability to pay a bill. The do have rental receipts and also utility receipts but with the wife's issues and the monthly income needed to secure a mortgage tied to both of them a home purchase is a bit away.

Having No Credit is only Slightly Better than Having Poor CreditAs they need some time to clean up their respective issues, they will take a rental until they are ready. Their only problem may be the same problem that caused them t stop their home search.

Landlords want to see almost as god a credit history for a tenant as a lender might want to see for a mortgage. Understanding and explaining that if they had that history they would not be renting, almost a Catch-22 situation.

A home or rental search starts long before someone calls their first real estate agent. Knowing that you can buy not just how much you can buy is important.

A real estate agent's job is not just to open a door. We have many responsibilities, not all obvious.  

If you are thinking of buying a home in Central Connecticut, I am here to help you.  With the spring season not too far ahead, now is the time to make sure you are ready when you think you are ready.  Give me a call and we can start you on that road.


Having No Credit is only Slightly Better than Having Poor Credit



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Comment balloon 9 commentsEd Silva • January 23 2016 06:56AM


For those that must navigate into this realm, get a hold of Ed Silva please

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 3 years ago

Ed, I feel for your clients.  Do you know any mortgage brokers who have private investors?

Posted by Sybil Campbell, REALTOR® ABR, SFR, SRES Williamsburg, Virginia (Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia) over 3 years ago

This is a tough one.  Too bad they aren't Native American.  That loan program does not require conventional credit.

Posted by Belinda Spillman, Colorado Living! (Aspen Lane Real Estate Colorful Colorado) over 3 years ago

Ed - there are so many different nuances in the building of credit.  I am sure you gave them a plan to get on track.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) over 3 years ago

Ed both bad credit and no credit is bad. The difference is in which one is worst comes in why someone has bad credit.  Some bad credit can be fixed in as little as 30 days, and then there is the bad credit that it will take a very long time to fix.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 3 years ago

Ed Silva I see the dilemma with these clients. Not sure how I feel about "credit history", it does not work for everyone nor does everyon like it...I recently had an incident, where my buyer client has a very high paying job, 20% saved up for a very nice home, however a short sale 2 years ago took his credit down. The dip in credit score was really not justified, as he paid off EVERY single penny of the deficiency and had really not been delayed on any of his payments to the lending bank, nor in his other payments. We are currently still looking to find an investor/lender :-/ that looks beyond the credit score. Crazy, eh?

Posted by Susanna Haynie, Colorado Springs Realtor GRI CNE MCNE ePro MRP (CO-RE Group, LLC -Real estate sales and services) over 3 years ago

The company I'm with has a property management division. The software that's used to track payments also records timely and late payments and this gets reported to the credit bureaus. 

Posted by Debbie Laity, Your Real Estate Resource for Delta County, CO (Cedaredge Land Company) over 3 years ago

You point out that nowadays, tenants face the same problem when trying to rent. You just have to have good credit scores. Banks have those pre-paid credit cards for those who just don't want to get into debt. Get a couple of them and just keep paying them off. That's what my bank suggested because I'm one of those who doesn't like debt.

Posted by Hella M. Rothwell, Broker/Realtor®, Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea over 3 years ago

Ed Silva 
What a great explanation ---
A real estate agent's job is not just to open a door. We have many responsibilities, not all obvious. 
All the best - Lynn

Posted by Lynn B. Friedman, Concierge Service for Our Atlanta Sellers & Buyers (Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ...) over 2 years ago