Does anyone know if it is even possible to get your VA loan without having a credit card?

2015-09-18T01:10:57-04:00

I've never had a credit card, I don't want one, and I find it insulting that my hard earned benefits are being withheld from me because I won't conform and go into debt.

Response by SPC George Grimm made Sep 18 at 2015 1:15 AM

2015-09-18T01:15:14-04:00

It's unfortunately a necessary evil because of the fact that they base everything off of credit worthiness! I was in the same situation when I got out of the army because I paid for everything based on the actual money I had ! You pretty much have to build a credit history, and the only way to do that is credit cards!

Response by Sgt Billy Alt made Sep 18 at 2015 1:23 AM

2015-09-18T01:23:00-04:00

You may be able to qualify based on alternative lines of credit. Such as cell phone bills , utility bills etc

Response by 1SG VonErick Trim made Sep 18 at 2015 1:23 AM

2015-09-18T01:23:10-04:00

You seem to be talking about two different things. The certificate from the VA is not a loan. The loan comes from a financial institution. You take the certificate to the place you are are planning to get the loan. You dont need a credit card to obtain the certificate. The loan may depend on your credit rating.

Response by SSgt Alex Robinson made Sep 18 at 2015 1:50 AM

2015-09-18T01:50:52-04:00

yes it is possible

Response by PVT Robert Gresham made Sep 18 at 2015 2:18 AM

2015-09-18T02:18:52-04:00

PFC Heather Holmes Yes, you can. A credit card is just one form of credit. If you have any other credit, if you have bought a car on credit, or taken out a loan for anything then you can use this as proof of good credit. Note that it is important that your credit on those loans be at least fairly good. If you have never had any form of credit before then you can possibly talk to a hometown bank, or possibly the bank of a close relative who might be willing to vouch for you. It's a longshot, but it has been known to happen.

If none of the above work, go ahead and get a credit card. You don't have to go into debt when you have it. Use it once or twice a month to make a small purchase and pay off the full balance every time your bill comes due. Do this for a while and you are on your way to a great credit score.

One last tip. Don't go to an online site like "Credit Karma" to get your credit score. It is basically a club (which you will end up paying for, sooner or later) to get what you can get for free anyway, once a year, from each of the top credit reporting companies (Experian, TransUnion, and Equifax). You can request the information, online, at the website of each of the companies.

Whatever you decide good luck !! I hope you get your new Home !!

Response by CPO Private RallyPoint Member made Sep 18 at 2015 8:03 AM

2015-09-18T08:03:10-04:00

A credit card can be helpful to your credit report if used properly. I have one and it is used to pay my monthly bills, I do not use it for impulse purchases. I know how much will be charged each month and pay it at the beginning from an account that I keep just for that. It is a minor hassle going in and making this transfer but it keeps my credit score up and will help in the future when I go to buy a house.

Response by Sgt Aaron Kennedy, MS made Sep 18 at 2015 8:14 AM

2015-09-18T08:14:30-04:00

They are independent of each other.

The VA Loan, is a Loan backed by the VA. It still uses your overall credit score however to determine your credit "worthiness" but since it is a "backed" loan, the bar is lower than if you didn't have someone covering it in case of default.

Your credit score is determined by a variety of factors including whether or not you have any other credit sources including credit cards, but things like car loans count.

There is absolutely no requirement to have a credit card to have a credit score, not to get a VA loan.

If you wish to use your VA loan to purchase a house, contact a realtor, and they should be able to walk you through the process. If they tell you that you need a credit card, go to a different realtor.

Response by MAJ Private RallyPoint Member made Sep 18 at 2015 8:23 AM

2015-09-18T08:23:03-04:00

You have to have credit to get credit; simply the way the game is set up. With no credit cards, your score is likely to be to low to get a loan from the lender. That is separate from the VA process.

Response by CMSgt Mark Schubert made Sep 18 at 2015 8:36 AM

2015-09-18T08:36:24-04:00

Why do you have to do into debt with a CC? I use a CC (Freedom by Chase) to make almost ALL my purchases because I get at least 1% back (5% on various purchases). I pay off the balance each month - and I earn about $1000 or more in a 12 mo period - no debt.

Response by MAJ Private RallyPoint Member made Sep 18 at 2015 8:38 AM

2015-09-18T08:38:22-04:00

PFC Heather Holmes You will notice that most of what goes into your score is use of credit cards - use, on-time payment, how long, etc.
I had both of my kids start a secured credit card at 18 and start making regular payments.
It's admirable to avoid debt. But unfortunately our credit scores won't allow complete lack of use. And your credit score can factor in for jobs, deposits on utilities, and a lot of other things besides just loans.
Six key factors:

What Is in a Credit Score?

Credit scores are used by financial institutions to determine your creditworthiness. Here we explore the six key factors that determine your credit score.

Response by PO1 John Miller made Sep 18 at 2015 9:26 AM

2015-09-18T09:26:03-04:00

As others have said, having a CC does help your credit score but is not the only thing that goes onto it. As long as you have "good debt" and you make all your payments on time you will have a good credit score regardless. But getting a loan (which has already been pointed out that getting the VA guarantee is different) is ultimately up to your bank/credit union.

Response by MSG Private RallyPoint Member made Sep 18 at 2015 9:52 AM

2015-09-18T09:52:23-04:00

If you wish to obtain a loan and don't have an established credit history, then obtaining said loan may be difficult down the road for you. Apply for a card, and use it for small things like gas and groceries. Pay those bills. Boom, instant credit history.

Response by SGT Patrick Reno made Sep 18 at 2015 10:59 AM

2015-09-18T10:59:29-04:00

You do not have to have a credit card or credit history to apply for a VA home loan. Some lenders do not do VA loans, and I remember that the home inspection was a lot more through for the VA loan. It is a great benefit for us, would not have gotten my first home with out it.

Response by LCDR Rabbah Rona Matlow made Sep 18 at 2015 11:02 AM

2015-09-18T11:02:08-04:00

VA mortgages are not issued by the VA - they are issued by a bank or credit union. In order to get a mortgage, you need a credit history. Things such as utility bills show up on your credit report and help you establish a rating. The VA guarantees a part of the loan, reducing the risk to your bank. VA mortgages also have the advantage of not needing mortgage insurance, or a down payment...

The reality is though, that the only way to get a good credit rating is to get some credit and use it, and keep it paid off. I have two credit cards, and I use them like cash - I pay them off every month, and I never spend what I can't afford. I don't carry balances, and I don't pay interest. I have a top rating.

I would suggest you try to get a car loan or a credit card, to establish credit history so you can get a good mortgage rate...

Response by CPT Jack Durish made Sep 18 at 2015 11:40 AM

2015-09-18T11:40:16-04:00

The best indicator of future performance is past performance. Really. It's a simple rule that applies to almost all human behavior. Now think about it. How can a person's ability to handle debt be judged if they've never handled debt? Entering the debt game for the first time with a home mortgage is akin to jumping into the middle of the ocean without first learning how to swim. Maybe you are a natural and can doggy paddle your way to shore. Then again, maybe you'll drown. If it affected only you maybe we could allow you to do it. However, when you ask someone for tens or hundreds of thousands of dollars of OPM (Other People's Money), don't they have a right to know if you have a track record indicating that you can do it?

Response by CPT Pedro Meza made Sep 18 at 2015 12:38 PM

2015-09-18T12:38:47-04:00

Heather, the VA Home Loan is a 15 year or 30 year debt; that is conforming. So see for what it is, apply for a credit card use it and pay on it, because it is good practice for when you are paying off your 15 or 30 year mortgage/credit.

Response by MSgt Private RallyPoint Member made Sep 18 at 2015 1:26 PM

2015-09-18T13:26:50-04:00

If you wont conform and go into debt, why are you seeking a home loan? Loan=debt.

Response by SMSgt Tony Barnes made Sep 18 at 2015 1:38 PM

2015-09-18T13:38:45-04:00

Having a credit card does not put you in debt...that's your choice.

Response by SFC David Davenport made Sep 18 at 2015 2:09 PM

2015-09-18T14:09:22-04:00

I have no direct answer to your question. A credit card used properly is a wonderful tool. It can build your credit and make your life a lot easier. If you don't do something to build a credit history most lenders will assume the worst about you. That may not be fair but honestly the credit industry does not care...they just want to make money. I recommend that you get a credit card that does not have fees and buy something every month. At the end of the month pay off the credit card. If you use it to buy things you would normally buy with cash (gas or groceries for example) it will do wonders for your credit.

Response by SMSgt Tony Barnes made Sep 18 at 2015 2:11 PM

2015-09-18T14:11:18-04:00

What can you say about your support of common core education and how that seems to be an outlier to true Republicanism?

Response by Sgt Brian McFarlane made Sep 26 at 2015 9:50 PM

2015-09-26T21:50:23-04:00

You do not have to have a credit card to get a VA loan. A little known fact is that you do not even have to have a credit score to get a VA loan. Some lenders will manually underwriter you loan, and gather what is called non-traditional credit. This is by verifying rent, utilities, etc that do not show up on credit reports.