Posted on Sep 18, 2015
Does anyone know if it is even possible to get your VA loan without having a credit card?
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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.
Posted 10 y ago
Responses: 21
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.
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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.
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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.
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PFC Heather Holmes
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.
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.
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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:
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:
Credit scores are used by financial institutions to determine your creditworthiness. Here we explore the six key factors that determine your credit score.
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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.
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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?
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Suspended Profile
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...
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...
CPT Pedro Meza
Setting aside $200 dollars for a months worth of gasoline and then paying with a credit card at the pump and then at the end of the month you pay the credit card with the $200 dollars you set aside is a good practice for paying a mortgage.
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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.
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What can you say about your support of common core education and how that seems to be an outlier to true Republicanism?
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