The Biggest Credit Hurdle for Renters Who Want To Buy
What's the biggest payment you make every month? If you’re a renter , it's probably your rent. But did you know that you can pay your rent on time, every time, for years, and it may never show up in your credit history? It's pretty frustrating, especially if you'd like to buy a home someday and you’re trying to build your credit. The good thing is that’s changing right now. Here’s what you need to know and why it could open a door you thought was closed. The Problem for Would-Be Buyers You’re not the only one frustrated. According to Zillow , nearly a third of applicants (32.88%) get denied a mortgage due to insufficient credit history - not missed payments or too much debt. Just not enough credit history for a lender to say "yes." It’s the most common hurdle would-be buyers have. As Zillow explains: “Nearly one-third of mortgage applicants are denied a loan because of insufficient credit history , making it the most common reason for a denial .” But there’s...
