Need More Debt

[bellmeister]

I got a call today that was both amusing and disappointing. I applied for pre-approval on a home loan and got turned down because I had never incurred any debt with the logic that if I had never owed anything how did they know I could pay it back. Forget the fact that I've saved plenty of money over the last four years. Apparently I should have

Comments

[pfctdayelise]

Having a credit card doesn't have to be scary man. Just set it up so it the bank automatically debits you for the full amount each month, easy. Get one with no yearly fee and it will literally cost you nothing.

[bellmeister]

I was considering getting one a few months ago, but my point is that it is ridiculous that the ability to save doesn't count more than having paid off debt. It's like a penalty for being responsible.

[aetherfox]

I think what happens is that credit ratings are available to be checked by any institution, however bank balances can only be accessed by the bank itself. I suspect if you applied for a loan from your home bank your track record of savings would count. At least that's what happened with mine, in fact my bank was pushing me to take a loan before I was ready to buy.

[bellmeister]

Apparently there is some credit score system out there which works out whether to give the loan with no human input which results in this. Anyway applying with a different lender that doesn't use the system.

[neo_leviathan]

I really should get myself a credit card from my bank.
I was knocked back for a different one that I applied for a while ago, same thing as you, no debts->no credit history->no thanks.

[bellmeister]

Yeah, you better get a card because obviously getting a mortgage will cause people like us who don't spend money we don't have will go on a large spending spree once we find out the power of credit.