No credit loan :: Apply for a mortgage if you have no credit history

Mortgage Lending Guide: No Credit Loans

Getting a Loan when you have NO credit

There's a difference between bad credit and no credit. Bad credit means you've failed to make payments on time, but no credit means nothing shows up on your credit report - good or bad.

Often people believe that they're doing the right and honorable thing by never going into debt. And who could argue with that? But in the eyes of a lender, it means you haven't proven your ability to make payments.

What can you do? Begin saving paper.

When you have no previous house payments, credit card payments, or car payments to fall back on, your Mouse House Mortgage Loan Advisor can fall back on other things.

Unless you've been living with someone else who pays all the household bills, you have been making payments. These include:

• Utility payments for electricity, sewer, water, and garbage
• Phone bills - either for a land line or your cell phone
• Cable TV bills
• Internet service bills
• Insurance premiums
• Union dues
• Rent

You may also have an account with some local merchant that doesn't show up on a credit report. This could be the drug store, the furniture store, or the tire shop. Even if you pay these accounts in full monthly, they do show that you pay your bills.

The catch is, you have to show proof! If you have a checking account, save your cancelled checks. If you pay everything with cash, be sure to get signed receipts and file them carefully for later use. Staple the checks or the receipts to the bills!

This includes rent. Ask for a signed receipt with each rent payment, showing the month covered and the date paid. Sometimes a statement from the landlord saying you have faithfully paid rent on time will suffice - but only if your landlord is a management company. Banks often reject statements by individual landlords.

You may feel annoyed, knowing that you've been so responsible that you never buy things you can't pay for, and that annoyance is justified. But it doesn't matter. You still have to show proof that you pay your debts.

Your Mouse House Mortgage loan advisor will help you decide which receipts to show, and will help you get a home loan in spite of having no credit.