Credit Trends

And sleep better at night too!

You are absolutely correct about this.

I couldn't disagree more. Maybe if you can't handle having credit and always feel the need to max out every loan you ever get, you should live debt free. But for most people living debt free lowers thier standard of living unnecessarily. Are you saying a person should live in an apartment while they save up all the money to buy a house for thirty years, rather than taking out a mortgage and living in the house the whole time? That's just silly. If you aren't an alcoholic, there is no reason not to enjoy alcohol occasionally and in moderation. The same is true of debt. If you can handle it responsibly, then you should enjoy the perks of the modern credit system.

I hate being in debt. Whenever I make large payments on my credit cards or loans, my dad wonders why. I do it because I hate the feeling of being in debt. When I finish school, I'm going to pay off my student loans ASAP so I can be free.

how can i climb out of this hole??? i have 2 r-9s but other than that i am only 2900 behind with med bills but idk how to get in contact with wehatever collection agency they are with

I could not agree more.

The average investor tries to minimize debt. The rich investor increases debt in their favor.

That's what I thought too. I have more than enough money I NEVER need to use a credit card but sadly that is not how society works.

To get a mortgage or loan of any type you have to have an established credit history regardless of the down payment %. I was going to buy a home with 20% down only to get turned down because I have no credit history.

i differ in your opinion. There is nothing wrong with debt. If not for loans how would anybody purchase a house? Secondly there are time when you can get a low interest loan to make a large purchas over many years in which the interest would be equivelant to inflation. The key is only borrow what you can affod to pay back, be educated about how much borrowing will cost (in interest, payments), and don't agree to anything crazy like variable interest mortages, leasing a vehicle instead of purchasing, extremely high interest vehicle/credit card/personal loans.

To sum it all up. Debt is fine as long as you understand it and make an educated decision.

I agree! I am twenty years old and everyone depends on credit or loans.  I was raised to never spend more than you have, and I could not be happier.  I am in college debt and loan free! Everyone else is going to be enslaved by these "student loans" that will take the rest of their lives to pay off.

So whats the point of monitoring your credit if you're against debt to the system?

I'm seeing a lot of young people with this type of credit. A high score doesn't always equate to good credit, or even if you have a high score, lenders will not always pick up for a loan. Young people tend to have hyper inflated scores because in reality, they have no credit. 1 year of paying off your card is not good enough. Lenders don't really start taking you serious until you have had quite a few years under your belt. It took me about 3 years to get a good visa card from my credit union with a limit of $7500, and only then they did it after I had several installment loans that I paid off, and an auto loan. In the same way, not using your credit but having several open accounts is also bad. Lenders will the potential debt you could get into, and if you have 10 cards with $1000 limits each,  you have the potential debt of $10,000 and they actually take that into consideration when they look at your debt to income ratio. The best way is to open maybe 2 cards (major cards not store as they have high interest rates) and use them only occassionally being sure to pay them off in 1 month.

A friend who worked at costco signed me up for an amex to boost her sign up participant numbers and there I was, 19, $10k limit amex. It ended HORRIBLY. I'm still making up for it five years later :-( At least you didn't dig yourself a whole as deep as I did. Had I known the things I know now back then, I'd be in a much different situation. I totally agree that working at a bank forces you to look at your own situation and better yourself. I started working in retail and my paychecks normally went back into what ever store I was working at. 

Get rid of the credit cards. Get rid of the problem.

way to go! you tought a lot Thanks

I'm 20 and my score is 770+, I've got 6 credit cards and always have utilization under 20%, often under 10%. I never spend money I don't have, I always pay in full. My lowest line of credit from any issuer is $6K, which I got when I was 17, at 19 I got a no set limit Amex.

Best advice: never carry a balance to the next month.

I have children fifty years old that have yet to learn what you did in a few short years. You are an perfect example of one who uses their head for something besides growing hair.My congratulations to you and whoever raised you.

I had the same problem! I saw that  my credit score was high so I was thinking hmmm why not go and apply for a credit card, thought I could manage it but then temptation got out of hand. So my credit score is EXTREMELY low, very shortly after opening up the accounts. Its good to know that if I just pay off the balances and keep the balance lower than 30% my credit will shoot back up :)

There are a lot of elements that go into a GREAT credit score including education, discipline, time. What I mean by that is the fundamentals of how credit works should be taught throughout your highshool education. There is no background on how credit cards, debt to income, and leaving within your means. I have been very blessed with not the money as my parents were not very well to do financially as my dad was a sole income earner working on a factory floor and my mom stayed at home. They saved 20% of their income paying themselves first every paycheck NO MATTER WHAT. They never lived beyond their means and budgeted their money accordingly.  I learned these principles from my parents who have taught me more than I could ever put on paper, but the financial message that I received was (1. It's not what you earn, but what you spend that matters, 2. Never leave beyond your means 3. No one cares more about your financial future than you do, so plan as if there is no assistance).  They are now just a few years from retirement and they should be set for the rest of their lives,not because of how much they earned, but because of what they did with their hard earned money. 

EXCELLENT ADVICE   ALL TRUE AND ACCURATE BRAVO

I could not have said it better myself.

It also does not help when the stock market crashes twice in the final 8 years of a person's working years. There is nothing worse than having to live on Social Security because all you worked for in 45 years went down the tubes. That happened to a dear friend of mine who spent many years since high school and the military working as a mechanic. The only thing that allows him to live on SS is because his health care is free with the VA from his military during Vietnam. And his non-taxable income (tiny) as a Commander at an American Legion.

People want to blame others for not understanding how the stock market works, but the truth is not many people have enough knowledge to safe-guard their money on the stock markets. I have seen well-educated people make mistakes that is common even among those with little to no knowledge of stocks. If you can afford it, get life insurance and put money away that is invested in a regular savings account or your mattress (fire proof) or just put it in the bank safe in incraments of $100 bills.

As a teenager I was raised to fear credit.  I thought that by turning down the countless credit card offers in the mail (especially the ones that come flooding in after high school graduation and acceptance to college). It did not occur to me that what should be feared is not having open lines of credit, but being under-informed about how to use it and making purchases without the means to pay them back. My mother has terrible credit and my father worked extremely hard to become financially stable and responsibly manage his credit. When I became a senior in college I realized I had no credit and quickly opened a card that would earn me frequent flier miles months before I graduated. Because of that, my credit history extends a measley 4 years. This, I might add, is only of consiquence to me because, upon advise of my father, I hope to get a mortgage in my name for a house during my time in graduate school instead of shelling out over $60,000 to a landlord over the course of a 5-6 year PhD program. 

I am 26, and am looking forward to continuing my relatively recent habits around credit management and establishing new ones. I find that managing my credit can be fun because, like in life, I am reminded that even small actions have a larger impacts in other areas (I open a new card, my credit history plummets. I increase my credit limit, my utilization percentage goes down) but there is always room for improvement and growth. I am thankful I that was able to survive adolescence and almost all of my college years on debit alone, making only purchases that fell within the limits of the money I had. I realize that my ability to do so was a function of my priviledge and is not the reality for many other Black Americans. I agree with jakewill05 that young people today should be educated about healthy credit habits. We often talk about giving chindren allowances, but this merely gives them a taste of what it is like to buy things they want. The concept of borrowing is often not introduced until much later, as children often think we have a right to everything our parents have, so it is difficult to think anything they give us should be paid back the way credit companies eventually expect us to. Establishing early credit will allow late teens and young adults practice responsible borrowing (and perhaps even more important, responsible paying-back) which will serve as the foundation for larger decisions in the future (I hope to take over the mortgage on the house my dad and I purchased within 1-2 years. Wish me luck!)

A lot of the people on this site (and conversations on credit in general) obsess over *the number,* some even expressing their frustration over making good financial decisions, such as paying off loans and diminishing debt, that result in a decreased or unaffected credit score. I believe what is ultimately important is our whole sense of health and peace of mind, not playing the credit score game. If having one credit card or a zero balance gives you solace, don't let that solace be tampered with by a few unobtained points in a credit score. 

Sorry to burst your bubble but your real FICO score is probably lower. Your Credit Karma score is just an estimate. When I got my mortgage at age 23, my CK score was 800, actual FICO score was more like 750. I had a credit card for 3 years, paid in full every month. My credit utilization was less than 10%. 

While a credit score in the mid 700s is enough to get approved for a mortgage, you need 740 to get the best rates. It's very easy for someone with a short credit history to slip below 740 since small changes in account balance and new hard inquiries have a higher impact when there's little credity history. For me, 1 hard inquiry (from a mortgage broker) was enough to lower my score by 15 points. 

please explain how being 19 you took good care of your credit? because having your parents help your credit as you got older does not count as taking good care of it (yourself )

. because unlike you we dont understand how important a credit score is...

Haha, well I don't know about the water, but my parents just taught me financial responsibility; they also went through a bankruptcy when my dad was out of work for 9 months, resulting in the loss of our house, and it made me very aware of my financial decisions. I'm also in my mid-20's, I own 2 cars that were paid in cash  (I HATE the concept of paying an obnoxious amount for a new car to have it depreciate right away when I can find a good used one for 1/4 of the price), and a CreditKarma score of about 715. I lack my own home because being self-employed makes it tougher, but I'm still working towards it! I have money left over at the end of every single month and still go out and do fun things (AND pay my credit cards!) because I live within my means and I budget very well.

Im mid 20s ive owned 4 cars and motorcycles all purchased on loans threw my credit union and have a home that im currently paying on at this time and is the only debt i have currently . l i dont make alot of money enough for someone who is 26 and I have a high 700 FICO score its definatly possible. I know quite of bit of freinds my age that are in somewhat the same shoes as me. if people dont take in to much debt to go overboard its definatly possible

it only takes a few years of credit history to get your credit score into the mid 700's.  I'm 23 with a score in the 760's, got my first 2 credit cards when I was 19 and didn't make a single charge on them for the first 1.5 years.  You might need the 40 years of credit history to get a credit score closer to 850 but realistically you only need a score in the upper 700's to get good credit offers/rates/deals, which I managed in less than 5 years of credit history.

Not true I am 23 and my score is in the mid 700's because I have never allowed myself to have any credit card debt.  As long as you pay your bills on time, build a decent amount of credit, and keep you debt load low, you can get a good credit score.

Im 19 with a 720. Have only had credit for the past year, my parents have had credit for 20+ years and are only in the high 700's its all about how good you are with the credit you have.

PupilOfConfucious,

Allow me to disagree with you.  You can definitely qualify for excellent ratings on a car or a house with a credit history that has only been open for 5-10 years.  When I was 22 (credit history open since I was 18) I qualified for the lowest possible rating on a $25k car loan WITHOUT a co-signer.  All I did was make sure 100% of my payments were made on time and that 95-100% of my credit card was paid off every month. 

It's definitely possible.  Age is not an obstacle to a god credit score or obtaining excellent loans on car or home purchases.

wallsoflight,

What could be more fair? The way you describe the system it sounds real just.

However, imagine imagine someone living paycheck-to-paycheck but paying all the bills on time, no problem (did I just describe 50+% Americans?).

Now, the guy gets laid off. But, let's say there's no crisis, he gets another job within 3-5 months. In the process he is late on his payments, once or twice.

DOWN goes the score, UP go APRs. So he misses more payments...

DOWN goes the score, UP go APRs. See where it's going...?

I am 29 with a credit score of 738, this chart means nothing if you pay your bills on time every time.  Don't count yourself out because you are young and the statistics don't match up.

you probably live with your mommy and rich daddy

I am 23 and have $30,000 in debt (no mortgage) and have a 765 credit rating, just have to be responsible

What is not true is the fact you saying that it is not true.  If you try to buy a house now, guess what, your credit score is not going to serve as well as you thought.  Your credit history plays a big role in big purchases like car or house.  For credit cards, your socre (in most cases) will be sufficient.

Err... "lowest possible rating" was supposed to be "lowest possible interest."

Quite frankly, I don't see that as a "handicap". It's just reality. All else being equal, teens an 20-somethings ARE higher risk.

776 here, with only 5 years credit history at 25 y/o. The more credit averse you are, the higher your score will end up.

776 here, with only 5 years credit history tops. 25 y/o

I am 22 and had a score of 744. However, when i was looking for an auto loan i got approved for zero loans. Why? Because my account was not old enough and because i paid my balances in full each month and also becuase i did not have a mix of credit. Even if you have a good score at a young age not having an old account will hurt you.

I am 22 and had a score of 744. However, when i was looking for an auto loan i got approved for zero loans. Why? Because my account was not old enough and because i paid my balances in full each month and also becuase i did not have a mix of credit. Even if you have a good score at a young age not having an old account will hurt you.

I am 22 and had a score of 744. However, when i was looking for an auto loan i got approved for zero loans. Why? Because my account was not old enough and because i paid my balances in full each month and also becuase i did not have a mix of credit. Even if you have a good score at a young age not having an old account will hurt you.

My parents have excellent credit so they added me onto one of their credit cards.  It shows I opened the account 4 months before I was born! But it boosted my score and I have a 730 credit score because I have taken care of my student loans and car loan.

I'm 21 years old with a mid 700 credit score after two and a half years of history. I opened a few lines of credit, paid in full after every month, and kept my utilization rate low. It's possible to be young and still have decent credit.

As the others have said thats not true. I have a score of 765 and I am only 21, and when I was 19 I was averaging a score of about 715. Yes I had a parent co-sign for myfirst card when I was 18 but about 6 months after getting my first one, I was able to get a card of my own and then about a year after getting the first card I had my parent removed from the first card.

One of the important things when being young would be to always make your payments, and I agree with stealthscrap that if you dont spend more then what you make then you are set!

In the end, I followed the guides that credit karma posted here to get good credit and it has really helped! Who else do yu know ever had "Excellent" credit by the time they were 21? And because of this, no deposits required by Verizon, or our Power company, etc.

O rly, you are right.  How can a person have longevity in their credit history, when they haven't even been LIVING that long.  They could have excellent credit and still be penalized for loans,jobs,etc.  There should be some other scale in which to monitor this or either do not give so much crredence to the length of accounts, and just judge their score on HOW THEY PAY...  and. what account would you have for 40years.  You would have to be 60-70.  Is this age discrimination?  Maybe someone should bring that up and make the credit monitoring/credit bureaus correct this.  maybe they will get sued for the info that they put out on a young person or for causing them to lose opportunities/income/jobs, due to the info they provided..

20 years old with a score of 693. 

I had a good credit score at 20.... I had several store cards and a car loan from 16 that contributed to it. My dad was willing to co-sign, but I had to work and pay for the loan. When I say good, I mean like 700ish... It's actually lower now! haha

That's not true either.  My brother walked into two different lots when he was 20 years old got a car and a motorcycle with nothing more than his signature.  Might not have been a house but credit history is only important because it affects your credit score but everyone mainly looks at your credit score, things that are in collections and the amount of late payments that you have. 

My credit score is higher than the average for all age groups, and I am 23.

Not charging anything is no guaruntee of good credit. It's paying on time that leads to your good score. I have a 771-828 depending on which score you're looking at and am 25 with a total debt of $72,000 (thank you Sallie Mae student loans), because I pay my loans on time! The key is just making sure you're not skipping payments or letting the interest push your balances way out of hand!

My credit history average is only 2.8 years and my score is 776, I had no problem getting a mortgage. I beleive my avg was only 2 years when I got it.

I noticed that credit scores go DOWN in the 34-44  range.  I wonder why this is?  I know in my two daughter's cases, it's because they don't pay off  credit cards, and one just takes out card after card and maxes them out, now they have just gone through bankruptcy, their second since they married!  And my husband and I also loaned our daughter $13,000 to pay off her bills in 96, then she promptly started taking out cards again, tho she'd promised us she wouldn't!  They have such low credit scores it's shameful.  And they weren't raised that way.  My husband and I were always sticklers when it came to paying our bills on time, so we just can't figure out why the girls are this way.  My son in law makes $75,000 or more a year, so there is NO EXCUSE for bankruptcy unless you consider living just for today and not thinking of tomorrow a valid excuse.  We are just heartbroken that our family values seemed to have meant nothing to our children.

Right when I turned 18, I opened 2 credit cards and ym score was 709. $2500 limit on first card. Now I'm 21, at 749. My credit is better than my dad's. They want to use my name to buy a house. The thing people don't realize, is bank accounts matter as well.

I had savings & checking sicne I was 13. The high traffic in my savings is the only thing I can think of to make my opening score 709.

So if you were going to lend out some of your money, you wouldn't feel more secure about lending to someone who has managed credit responsibly for 40 years than you would about lending to someone who has only managed credit responsibly for 2 or 3 years?

This stuff isn't arbitrary. The best predictor of future behavior is past behavior, and people with more of a known history are easier to predict. Just because it sucks to be 20 and have a lower credit score, that doesn't mean it's somehow unfair. It's just statistics.

im 24 and have a 748

@jhaddock

I"m at 25 with a score over 750, I bought my house at 22 with no issues and only 2 credit cards open at the time. Please don't talk about what you don't know.

But you see, it's not only credit cards, it's loans, time shares, hospital and medical bills, etc....

I just bought a house at 23.  Even after the mortgage (4.5% fixed 30 yr FHA renovation loan with 5% down) I have a score in the 750s.  hint: don't carry balances and pump your available credit to minimize your utilization percentage.

unfourtunatley since the recession ( which we are not out of the woods yet) it is harder to pull that. You are lucky that you got that interest rate when you did, banks and car dealerships are not takeing that big of a risk anymore. I work at a small community bank and luckily we did not need any bail out but now we need to put more money aside to cover any risky loans from the past that might not be able to get collected on. People just dont want to take the risk, you need a cosigner for everything these days!

there is a way around this........................ I am 26 I got my first  credit score when I was 20 years old. My score now is 740 which is great.  I just got a home loan before that my score was 784.  Here is how to beat the system.  IF you cant get a loan or a credit card or you just want to boost your score this is how you do it if you are a young person.....    1 )  Only have open 2 credit cards   2) only have 2 installment loan open At one time.  3) only use no more than 7% of your available credit.  If you do this for about 18/mo your score will be Great.  4) close all other accounts.  Don't worry about the average age of accounts.  that is a small amount of your score.  Keep in mind 35% of everyones score in any age is based on if you've paid on time.  The most important thing to remember is if you are young like me and need help getting a loan of any kind student, car , House, credit ETC.  Only use local banks Regardless, move your FDIC accounts to them first.  Then speak to loan officers Directly.  Major banks only go by score not each person.  If you have 2 Grand in a bank and have a 620 score or higher go to a local bank and tell them what you need. Even if they suggest a secured loan product go for that.  IT will help you in the long run thats what I did.  TRUST ME ON THIS.  IF you need any more help contact me   Bugman@nc.rr.com    put in the subject line Credit Karma Question.

you need more than a good score to get good offers/rates/etc on major purchases. You won't be able to obtain decent financing for a house with only 2 credit cards...sorry dude

danger...it's cool that you've had a couple credit cards that helped you boost your score. However, keep in mind that in order to obtain any amount of substantial financing (house, business start-up, high limit cc, etc) you'll need more than just a couple credit cards, in today's market that is.

I've read a few posts down below too. It seems like most of the young people here think they've already figured out the entire system. It looks like you're on the right track. Try and go for a high limit card or maybe a revolving line of credit through your bank for around $5k. The larger the dollar amounts are on your credit report (provided you actually use them and pay them off within terms) the better your report and score will be.

Having a credit score of 700+ doesn't mean much anymore when applying for larger purchases and lines of credit. Dollar amounts of the tradelines, age of the trades, and types of trades also play a big role.

Here's an example of how things have changed...in 2005 I was 18 years old. Just got my first credit card and cell phone in my own name. I bought a house with 3% down payment on a FHA loan. I barely had enough credit history to generate a score. This would NEVER happen, nor should it ever happen in today's market. Thank you.

Could be true, but I got my first credit card about 3.5yrs ago, financed a $50k bmw with their best financing rates, and have 4 credit cards with combined credit limit of $28k. Score is 750+.

 ditto to most of that

Yoozer: That's exactly right: Longevity--or the age of your credit lines--is just ONE of the keys to great credit. Young people do have a bit of  handicap on just this one key. For them, paying their bills on time, keeping their hard pull credit inquiries to a reasonable 1 to 2 per year, and having a mix of different types of credit--like car loans and various credit cards becomes all the more important. But we shouldn't look at this as discrimination in a negative sense. EVERYONE must be willing to porve to their lenders that they are responsible at the credit game. Over time, the payoff is obvious: your scores will rise. Act silly or irresponsible, and the result will be a stiff drop in scores. It's really the fairest system ever devised. The deadbeats get what coming to them. The responsible folks get showered with ever more credit. 

Now really, what could possibly be more fair?  

To the person who says the other person could not have had a good credit score when they turned 18:

My friend (as well as everyone in her family), had an AMAZING credit score when she was 18, because her parents had added her name onto many of their accounts when she was still in High School.  Her dad was smart and gave them this huge advantage in life, as well as sending them all to a class at the local university that taught them how (important it was) to keep the scores he had gotten them.  So, it is possible... just not very likely, because most people's parents don't do that for them.

you could not have had a score of 709 when you turned 18. 18 years old is when you can start to get credit, because that is when you are legally an adult. You cannot obtain credit berfore then. Your score does not start out that high. It starts low.

Do you realize that you cannot just "get" you citizenship? It's a process that takes 3+ years depending on your visa. Yes you do need a visa to live and work in the United States. And you can not just "get" a visa either without meeting certain requirements. Only certain individuals can visit the US for less than 3 months without a visa. Please inform yourself before making such statements.

I've been reading the comments and I'm thinking most of the younger people are doing a great job and being responsible.  However, when you are doing well, planning your retirement, paying off your mortgage and loans and all of a sudden you get sick, lose the job you set to retire from in 8 months, the savings get eaten up with legal fees trying to save that job from unscruptulous supervisors, all of a sudden the medical bills hit you, bankruptcy is staring at you and the nightmare is out of control!!  So you start over after losing your profession, going on disability, paying outrageous insurance premiums and thanking the good Lord that you haven't had to fall even farther.  You look at your credit score and are hopeful that a score of 693 will rise into the 700's and even though you are only 423 dollars in debt you owe nothing else, save the routine monthly utilites, drug bills, groceries and Dr. visits and the insurance premiums for health, life & funerals, which will come eventually.  Sounds grim, huh?  Not really, at least you wake up every day & can thank the Lord for another day to worship and serve Him.  Growing older or getting sick doesn't come with guarantees.

DieuSoldat -- it gets progressively harder to gain points as your score gets higher.  Because, well, how much difference is there really between someone who has always made payments on time for 10 years, and someone who has done the same for 11, 12, 13, or even 14 years?  Certainly a whole lot less difference than between someone who has just applied for their first credit card, and someone who has paid on time for 1 year, or two, or 3.

Takeaway: if you do all the right things, your score will keep going up.  But, it probably won't go up as quickly 5 years from now as it is now, for doing the same things.

Do you know that if you are not an American citizens (citizenship) you can't even get a loan for mortgage?

Many of these comments are sickening and ill informed. One it's extremely nationalist to claim that they are stealing "our" jobs. They have children too they have to feed. Also having immigrants work here makes the economy grow. A growing economy CREATES (doesn't destroy) jobs. Trade of any kind (Including labor) is good for an economy. It can cause both parties to be better off than they were before. But if your ethnocentrism is so great that you would rather America suffer than so be it.

@cecefun2 - You can get a loan without being a citizen, you must, however, be a permanent resident.  If you don't have permanent residency, there is nothing holding you here, and if you leave, well, the bank can't come after you in a foreign country.  Sorry.

So get your citizenship. Do u realize in most of the world yu cannot eventravel thru without a visa?

cecefun2 as a real estate broker and former loan originator I can tell you that your comment is not true.  As long as you are a permanent resident that is permitted to work in the United States and have a Social Security number then you are eligible for mortgage financing.  Of course, the same credit, income, work history, down payment, debt-to-income and debt-to-credit ratios apply to non-citizens as they do for US citizens.  Under the current policies non-citizens are even eligible for FHA secured financing, so you should really double check your information and the credibility of your source.  I would hate to think that you might dissuade other immigrants from purchasing a home simply because they read your post.  You may also want to check with Immigration and Naturalization Services to make sure that all of your paperwork is in order and that your visa has not expired.

Not so. I got a home loan in 2000 but I didn't get my residency 'till 2004 (the application had started however). I'd been on work visas since 1994. I had good credit and history (750 or so) and the mortgage cost me no more than the broker expected.

I'm not sure you understand how the foreclosure process works.  Please explain how a person's citizenship would have any bearing on foreclosing on a property.  Surely you don't believe that a foreign citizen is capable of taking the home that they financed in the US with them if they leave the country.  The bank should have no trouble located the property that is being used as collateral for the loan, and the service of foreclosure notice would go to the property.  So there would be no reason to track this person down.  You realize that they do not have to track down a US citizen that abandons their home either, they can just foreclose on the property.  In answer to your question, if the foreign citizen met the lending requirements for funds to close and credit score then I would absolutely lend to them.  Thankfully, I can tell that you are in no position to give a mortgage to someone from any country

I'm curious adavis425 - what harrowing experience earned your citizenship?  Was it handed to you as it was to me? Simply because you were born here doesn't mean that you earned your citizenship, it just means you feel entitled.  I don't know why so many people on this forum feel the need to express their ignorance. 

Chances are they would be giving money to an American citizen, to an American bank, using American repairmen, American real estate, mortgage, insurance, title & escrow - shopping in American stores in the neighborhood they are purchasing a home in, and paying income taxes on the money earned to pay all of the aforementioned expenses.  Furthermore, they will have to pay a tax that you do not have to pay as a US Citizen for any profit earned from the sale of that home; whereas, a US Citizen would be exempt from taxation on the first 500K.  So there are still perks to being a US Citizen, including the freedom to express your opinion. But please don't make such uninformed comments on a public forum, because you're making the rest of us (US Citizens) look bad.

i love this site now i know i need to pay everything off.. Im a 25 year old black male and my credit score is 690.. it would be better if i had look at this soon... I forgot i have things to pay off... 

Thanks Karma.... YOU GUYS ARE GREAT!!!!!!

I HAD A GREAT CREDIT SCORE AT 18, I HAD CREDIT CARDS AND BILLS BEFORE EVER TURNING 18, AND THAT DOES AFFECT IT...SO IT IS POSSIBLE.

I ALSO STARTED WITH A HIGHER "THAN AVERAGE" CREDIT SCORE, B/C YOU CAN (AND I DID) HAVE CREDIT CARDS BEFORE I WAS 18Y/O...SO YES, YOUR CREDIT STARTS BEFORE 18!! JUST TOO BAD SOME KIDS DON'T REALIZE (OR CARE ABOUT) IT, AND MANY OF THEIR SCORES SUFFER...

Your parents can add you to their credit cards or at least some of them let you do such a thing. If your parents have great credit history and their credit card account is additionally linked to your name then yes you could have a super high credit score at 18. I know USAA lets you add your children to your credit card accounts and get a credit card with their name on it, but that is linked to your credit account and thus the history of that account.

I work for a Title Company. So let me understand this: Are you people saying that if Paul McCartney, the ex-beatle, wanted a loan for a mansion in California- that Bank of America COULDN'T give it to him if he's just a British citizen?

I find that unlikely.

yea my credits 722 so im doing alright just not great. wish i was near 800 had a PRE foreclosure which hurt me but got it outa foreclosure... Holla! lol.

thats not true....my parents werent citizens until a few years ago and theyve gotten mortgage loans since the 1980s

Good - and that's the way it should be and stay !

Tell this to the 2500+ illegals living in Storm Lake IA

I would think that the banks need to have legal jurisdiction to recoup their losses in the case of a alien who leaves the country.  Makes sense to me.

@amandaaassen

Unless you have personal experience living in another country facing the difficulties of citizenship acquisition you have no place to make that argument. I was born and raised here, and many of my friends (family, too) have gone through the process of citizenship: It can be hellish, unfair, and discriminitive. 

"stop taking everything away from Citizens of the United States." Like what? The crappy jobs that are offered to these people at a below minimum wage pay?

Have you ever visited Arizona without citizenship? No? Oh, well the immigrants who ARE trying to follow the rules, pay taxes, and correctly assess government procedures get treated like second class humans. Amanda, I can understand your position, but your statement is arrogant, rude, and against what an American Citizen should represent and embody. 

I wonder why EVERY discussion board on the net attracts people who just can't resist getting all self-righteous, calling other people names (the asterisks don't disguise the fact it's name-calling), and telling people what THEY should do, because obviously, YOU know what's best for the world at large. Oh my god, just shut up all you know it alls! - For one thing, it's not easy to get into the US legally, let alone be allowed to staylegally and obtain citizenship.  Second, not everyone who wants good credit gets the breaks in life to rate a high score, or didn't any of you loud-mouths ever lose a job or get sick when your insurance didn't cover your pre-existing condition?  You all yell at each other like you've never walked in another man's shoes. You make me wonder how we will ever live peacefully together if all it takes is a stupid credit site to get you hating people. Stop denigrating non-Americans for a start. I'm born and raised in the USA and can't believe how hate-filled some of you people are.

That's not true my friend.  One of my clients is a Chinese citizen and he is purchasing a condo here in the US - He has a work visa, but hasn't even qualified for a greencard yet.  There was even an act in 1980 FIRPTA (Foreign Investment in Real Property Tax Act) that was written just to be able to tax foreign citizens for profits earned on real estate.  Just wanted to clear that up for anyone that may have been discouraged after reading that comment.  Cheers!

Not true. I am a resident alien (on a green card) and I have a mortgage.

Not really. I was a legal resident (not citizen) and got a loan to buy mi first house 2 years before getting my citizenship.

They don't need to track anyone down, they reposesse the house that'snot going anywhere :)

I had a really high credit score before I turned 18, because I was an "authorized user" on someone else's credit cards. When they made on time payments, I got the credit for it. However, if the person does not make on-time payments, it will really mess up your credit before you turn 18. I was lucky to have help me build my credit. 

SAVE THE RELIGION FOR ANOTHER SITE. THIS ONE IS ABOUT CREDITWORTHINESS, ETC.

So stop your whining and "get" your citizenship. If it's not worth the time and trouble, then don't "get" it.

I am  British citizen,permanent resident in  Alaska USA, I have a mortgage,so your statement saying "if your not an American citizen you cant get amortgage" is incorrect. 

Of COURSE he could have - others could have made him an authorized user of long-established accounts which would immediately give him positive tradelines AND a high AAoA.

I never cease to be amazed by people who simply state conclusions they've decided upon with absolutely NO basis for deciding upon them.

why would paul mccartny get a loan in the first place...........come on now.

Exactly, it's called investors. You do not have to be a citizen to make investments, you just have to be accountable. There are TONS of Europeans that own homes in vacation states such as FL, CA, HI etc. and rent them out to people such as myself who do not want to stay in one room hotels for a week. 

Why should something so important to a nation be easy? They cannot just open the flood gates and let anyone in, you have to have something to offer to benifit the nation or you are not needed. 3 years is not a lot to ask considering what you are getting out of the deal. 

...And that's as it should be.

So do the work and earn citizenship. What? are we supposed to hand you citizenship?? I don't think so.

Thats the way it should be, I think you should have to be a American citizen to sign any sort of loan document.

I hope to be where you are when I get there! I'm 20 and just hit 745, I know those last 50-100 points are the hardest.

Thats not true,you just need a green card to get a SS# then you can get credit , I should know as I have a green card and have lived 14 years in the US..

I was not an American citizen in 2008 when I purchased my house. I became a Citizen in 2010. Citizenship has nothing to do with loans...as long as you have a SSN number you can get a loan. If you are a foreign national without an SSN you will not be able to obtain a loan.

PS: I also work in a finacial institution ...where we grant loans to non-citizens with SSN all the time!

My score was 709 when I turned 18, now it's 749 and I'm 21. 40 points every 3 years, I hope mine hits 810 by 29 : D I have been letting a credit balance sit for a while and paying it slowly. Should probably pay that off...

Which score are you comparing ?

This credit score is the average it doesn't mean that's what your score is. Just pay your bills early and you will get a great credit score. I'm 29 and have a score of 810 which is higher then the 55+ bracket. And my score is 810 after having recently refinanched my home which lowered it about 30 points.

Where did you get that information? This is not true.

That is not true. I am a legal resident but not a citizen and just purchased a home here in CA. You can get a loan as long as your credit score and finances are fine.

Mine was 750 when I was 18, it has since dropped to 709 you can start with a fairly good score, but as I am figuring out having the high score makes no difference if you don't have a lengthy credit history, as I could not get a loan for more then $3,000 when I applied 2 months ago.

Of course he could. He is who he is, for heaven's sake. They're talking about ordinary everday working groups of people. He wouldn't need a loan anyway, he'd just pay in cash.

Wow, some of you are making me so proud to be an "Mericun!  Yeee-haaww!!  Get them no good for-ners across that border, because us Mericans need jobs.  We want to pick crops and work in factories, yes we do! 

I just wonder what would happen if Native Americans decided to kick us all the hell out!  Then what would you do without your good ole "Merica then?  Pathetic!

You can have an INDEPENDANT credit line at 18, but there are plenty of options besides opening your own account. From my personal experience, most banks offer some sort of teen- or youth-centered credit building process. In my case, when I was 15 or 16 my parents opened a prepaid credit card for me that they paid into and used. When I was 18 I already had a history based on that card. Now I'm 22 with a score of 725.

fico

Did you realize that in most countries, not just the USA, foreign nationals are prohibited from owning real property?  So you might want to inform yourself before making inane accusations and brushing aside the work necessary to obtain citizenship.  If you are born in a country, citizenship is a right, if you immigrate it becomes a privilege and subject to the rules and procedures of your adoptive nation for approval.  If you think citizenship in the U.S. is too hard to achieve, find an alternate locale or simply go home.  Not rude, just practical.

credit score start at 650 if you have 700+ at 18yrs old then probably your parents/guardian add you when you where 15 or 16. so dont be arrogant you have 700+ when you are 18, be thankful you have a good parent/guardian that give you the edge. and even you have 700+ at 18 one missed payment will drop it to 600. just be thankful ok kids... hehehe

teenagers (18) who have 700+ credit score have  a good parents/guardian because their parents already set them up on the credit as an authorized user which by the time they are 18 they already have 2 to 3 years of credit history and if their parents are paying their debt in full every month then they get good score. I know this because i did it this to my younger brothers and now they even have better score than me hehehe :)

untrue. check your facts.

not true.

Actually you can have a credit score of 709 when you are 18. When I was 18 mine was 714. I had a motorcycle loan and 2 credit cards.

if you have a work visa you can get a SSN

you don't have to track down the person to forclose on a property

not true they could care less where you are if you don't pay they don't come after you they froclose on the property 

not true

A "lawful permanent resident" is NOT sucking the US dry.  In fact we pay the exact taxes you do.  We are penalized by NOT being able to vote.  In other words, "we pay with no say".

You must be a "lawful permanent resident" to get a mortgage.  You do not have to be a citizen.  They will ask for a photocopy of your resident card to process it.

nonsense. just get the loan from a bank where the person comes from.

Yes you can, my daughters boyfreind is from Ireland and has had a mortgage for 11 years. He is just now trying to get his citizenship.

It is very very true, If Former Beatle Paul McCartney wanted a loan

ANYWHERE in the U.S.A. he would be turned down due to the fact

he is NOT an American citizen.

Same way if you went to anywhere in the UK. you couldn't get a loan

due the fact that you are NOT a British subject.

It's called the Financial Protection Act.

Every country has it in place to protect that countrys' monetary assets.

Not true.  You can be a foreign national without SSN and can get a loan from a portfolio lender.  The interest rate will be higher and the down payment requirement is higher, but you can get a loan.

Amen!!! I moved back "home" to care for my mother who had a stroke. I therefore had to pay for two residences (my choice)....because of the housing market my house in NC did not sell. This lasted for two years.... the costs ate up my savings, retirement, etc.... I became ill myself and unable to work.... that = no $; however, the bills kept coming. No matter if you have a perfect credit history ....paying bills early, paying more than minimal amount, paying loans off early, etc..... ONE (yes, ONE) late payment and your credit is screwed for life!!!!! Even if I paid off the balance of my loan it will only raise my credit score by 20 points!!! I think this whole credit "system" is a scam by the lenders to raise the rates, etc.

Have been trying for a YEAR!!! to refinance our primary residence under a FEDERAL LAW that OBAMA wrote several years ago when the economy tanked.... "Make Your Home Affordable"... problem is.... the financial institutions have found loopholes in the system and ways around NOT having to assist you in doing it!!!!

For those "Non-residents" .. are you SURE you want to be here???

PS. I have a friend of mine from Germany who I assisted in studying for her citizenship.....I could not pass the citizenship test if I had to take it!!!

This is not true. You can get a loan for mortgage  even if you're not an American citizen. I know a lot of people who bought their homes (and get their mortgage) when they was not an American citizen.

If you were only here right now to listen as I play the worlds smallest violen. It's magical!

Too many people come to America and/or Canada who disrespect our Countries, and don't like what we stand for. The freedom and opportunity has been taken forgranted by recent immigrants. I've long said that if you come to the US it should be mandatory that you take a lie detector test of some kind. "Do you Love the opportunity you're about to get from this country?" "Do you respect others free speech and freedom of religion?" "Could you ever see yourself trying to bring harm to America / Canada or her citizens?" After you answer those Questions (and any others suitable) satisfactorily, we MIGHT think about granting you citizenship.

If so many illegals didn't take advantage of our openness, you wouldn't have to wait so long (I know the wait it longer in Canada). Americans can't just drop into any country they want and receive the benefits immigrants receiive when they migrate here. So, save us the pitty talk, complete what you're supposed to, and we'll gladly welcome you with open arms.

I guess you had better get started right away.

as it should be

I agree. Although some people seem to believe that religion should be everywhere, including bowling alleys and my front door. Keep it to yourselves.

your so cool

This is completely wrong.  I know for a fact that you can get a mortgage without being a citizen.

This is completely wrong.  I know for a fact you can get a mortgage without being a citizen.

Forgivenandloved, you are so right.  Just because you plan & save hard and long, does not guarantee a happy and secure retirement.  Life just happens as you are striving for the best life you can achieve.

I quite agree with your statements.  People who think it is a simple method to achieving an American citizenship, should educate themselves before giving curt or simplified answers to serious concerns.

hahaha so true

WAAAAAA i'm crying

many countries if you want to purchase a house and are a not a citizen you must pay in cash....no loan.  Only makes sense.  Would you lend to someone who could walk away from a loan as large as a home? 

Then they better get to steppin on that citizenship huh?

Yes of course... why would you expect a loan if you're not even a citizen?

Being older and being responsible do not seem to matter if you have 1 or 2 bad comments in your file!  I pay off my credit cards at least every 3 months completely!  I think this tends to hurt me more than help me!  I need the security ofr knowling I have a line of credit for rough spots that happen to us all... but, I cannot get it without putting my own money in reserve!  What am I or people like me to do?

Love the USA. You are not a citizen but you can own land. You are welcome for the taxes I pay so you can live. In most counties if you are not a citizen, you go to jail

the test you take to become a legal citizen is easy so i don't want to hear how hard you've got it the questions are very basic i know because in high school our teacher made us take the test to show us the difficult of it. its not hard really...unless you don't know how many stars are on the flag and how many stripes in which case your an idiot.

Actually, you can cosign on a signature loan as young as 16 and that is exactly what I did. When I turned 19 and wanted my first auto loan I had no problems and needed no cosigner. I was reasonable about the financing as well (13k, 48 mos on a 1 yr old car, with 1k down) unlike so many young people today who want to try and run before they can even crawl.

Wow, that's great! And that is why I'm teaching my children about credit, how it works, what it should be used for and how to build it and have it available for when you want to buy a house or expand your buisness.

Boo-Hoo....You have to go through a process.  FYI...There's a process for virtually everything and anything!!!  Deal with it.  As far as "having to be a US citizen to get a mortgage"   well...DUH!!  I'm not against letting others into this country LEGALLY, so they can become US citizens.  This country was built by immigrants. However, you cannot just arrive here and expect all of the same rights and privilages as those who were born here, without some sort of lengthy process. Virtually anyone is welcome here, and can become a US citizen.  It's one of our country's basic rights.  If you don't like the criteria or process that's in place, you can exercise another of our basic rights.  That's the right to LEAVE.

Do you realize you can not just "get" a college degree?  It's a process and takes 4+ years depending on your major.  You know what, if you want to be an American citizen, just like getting a college degree bad enough you will do what it takes.  If there are restrictions to receiving a citizenship it's probably for a good reason.  This process will weed out those who think being an American is an entitlement and not a privilege!  Stop whinning! 

Paying a credit card balance month to month is not a bad thing to do, it shows/builds a payment history that paying in full will not, but(!!!) carrying a balance with interest (especially high interest) doesn't benefit you (obviously).

not true. I have got 1 mortgags and 2 refis with a green card, and another mortgage when all I had was a work visa

do you have a mortgage? a very high percentile had a mortgage and had to short sale thier home due to hard times, until you have had these hard times you can't even imagine....

¨"Do you know that if you are not an American citizens (citizenship) you can't even get a loan for mortgage?"

This statement is totally wrong. My parent recently bought a house being both residents.

amen

i hope you have a ss card and pay income taxes

I find it unlikely Paul M would need a loan LOL

not ture.  I had my fist credit card when I was 17.

Fedi, 23yrs old, Score 755

its true. you either have to enlist, or get lucky and get a job that keeps renewing your work visas. I know all about it. When my mother got a job in the US we all moved down here. First she also got a job for my dad in the same university she works for, and then that same summer we started in one of the top highschools in the nation. It was rough - i didnt know a word when i moved down here - especially when youre 16 and youre expected to keep up AP level courses. Then I graduated with 3.8/4.0 from HS and got accepted to a military college. Got my green card through my mother 2 year. Then enlisted in the army and got my citizenship 3 month after i applied for it, because I got lucky and talked a lady into processing my documents along with active duty personel. Ill tell you one thing - I had it easy, my brother for example, still doesnt have his citizenship.

Word of advice - find a job with a good boss, who is willing to sign your work visa for you. Push your residency asap. and then youre set, unless you want more - like i did.

if you have any questions: email me at ilya.fedarovich@gmail.com ill be happy to give some pointers about the whole process.

Good Luck!