[legzzalot]

Can you get punished for not owing money to anyone. I swear. The mortgage chase is a nightmare. Why? because I have no outstanding bills or accounts.

I always thought it was a good thing to not owe money and to pay your debts. Apparently, this is not the case when trying to buy a house.

My bank told me to get a credit card today and start charging stuff and paying it off. I don't like credit cards. I learned that lesson the hard way when I was 18. They make me overspend and that is why between my 4 bank accounts, I have paid for everything with cash or a debit card. If I couldn't afford it, I had to think really hard about if I needed it or I had to be inventive because I do not like having debt.

This is insanity!

[4-eyes]

You don't need to do that: http://www.daveramsey.com/article/th...y_creditcards/

[Kitty]

And I'll bet that your bank will be more than happy to issue that credit card to you. Don't fall for their tactics. Your FICO score doesn't take into account the fact that you've managed to avoid debt (which is what we should all strive to do). All it does is rate how long you've been in debt and for how long you'll be in debt.

If you must get some type of credit card get one with a low credit limit. This way you can't get in too deep. I'd start with a $500 limit and use it just for grocery shopping. But, when I got home I'd repay that same credit card with my grocery money from my checking account. And always keep it at a $0 balance. No interest charges for you and a solid history of repayment.

[Dejibo]

That would be great if you had at least 20% to put down, and a good work history, but since you are using FHA stuff, you may just need to get that credit card. I have ONE credit card that I use for online stuff, or QVC and the minute the bill comes in I pay it. I dont wait for the due date, I pay it the day it arrives in the mail. The same for car loans. They get paid BEFORE the due date. All of this stuff adds up.

Even a store credit card can help boost your credit rating if you cant get a convential card. Kohls, or Sears or which ever. Just make sure that you dont go crazy. Get $50 of something, and pay it off. you dont need $500 of stuff, even the small amounts show that you are responsible with the credit.

A debt to credit ratio is a tricky thing. They want you to show some kind of debt so that you can prove you have a history of paying it back ON time, or before time. That you wont go hog wild with a limit, and that you are using it as a tool, not as a life line.

Having ONE credit card can be a good thing. Debit cards dont count. Just never lose sight of why you have it and make firm rules about its use. NOTHING can go on it, unless you can pay it in FULL at the end of that month. if you cant meet that rule, then dont buy it. I use my sears card all the time for things like lawn mowers or TVs or whatever because it can net me an extra 10% off the purchase. I always pay it off, so I dont worry about what the interest rate it.

IM so proud of you!

[legzzalot]

Well we do need new living room furniture. We have spent 3 years in the freebie set I got on craigslist and it is on the list of eventuallies I planned on. So maybe I will go that route and apply for store credit and it willl be the first "new" sofa I have ever owned.

[tkrik]

Aw, Legz! I have been there and am still there! I was looking at purchasing a home right about a year before MS hit. I didn't have any debt or anything like that. Like you, I paid my bills on time and if I didn't have the money for something, I just didn't buy it. So, I got a credit card with a $200 credit limit. I hated using it but did and made my payments on time every month just like they told me to. It made me sick though because with interest you are actually paying more than the retail price. UGH!

Anyhow, MS hit and I couldn't work so I cut up the credit card (which I had a zero balance on thank goodness) as I feel that if you don't have a job, you have no business having a credit card. I gave up my dream of owning a home.

It is frustrating to be penalized for being debt free. It makes no sense to me as if you are debt free, you obviously are less of a risk.