Living Without a Credit Score
Picture this: You’re on the hunt for a new-to-you car. You walk into the dealership only to hear Billy Bob say those dreaded few words: “Let me pull your credit report.” Sound familiar? Of course it does!
Instead, picture yourself walking into that same dealership with your head held high, pockets full of cash. When Billy Bob mentions checking your credit, you respond confidently, “No need, I’m paying in cash.” Yeah, you are . . . because you’re living without credit.
This “dream” can be your reality! Seriously, have you ever stopped to consider what life could look like if your major life decisions (and purchases) didn’t revolve around your credit score?
How to Live Without Credit
Buying a Home
Don’t have a credit score? Good. Despite what everyone says, you don’t need one to buy a house! And if you’ve never gone into debt, that shouldn’t be too difficult, right?
Now it’s time to focus on one thing: making sure you have a large down payment to buy your next home. Without a credit score, your down payment is a big factor (along with your job and how long you’ve been employed in that line of work). You’ll also want an outstanding history of rental and utility payments. Look for a mortgage company that uses a process called “manual underwriting,” sometimes called “nontraditional credit” or “no credit score” lending.
More than 5 million have beaten debt this way. You can too!
If you’re just starting your home-buying journey, be patient. Rent for a while if you need to and save up even more to put into a down payment. And whatever you do, don’t buy a house until you’re ready. That means you’re completely out of debt, you have 3–6 months of expenses saved in an emergency fund, and you have a good down payment. Of course, if you really want to, you could always just pay straight cash for a house! Cash is king, baby!