Xan and I have made our decision of whether or not to buy a house. We’ve decided it is not the best time for us for multiple reasons; the biggest being that we can’t find a better place for a better price than where we are now. We also came across quite a few surprises.
Did you know that in order to get a home loan now, you need to have 3 active lines of credit EACH? That’s right! In order to get a big debt from the bank, you need to already be in debt… And our country wonders why so many people are deep in debt.
I can understand that those with no or low credit due to lack of credit lines can’t prove their ability to pay off loans and use credit. I get that. What I don’t understand is how people with bad credit are more trusted than those without credit. To me, it makes sense to simply say, “Well, we can’t offer you as big of a loan as these other people with fantastic credit, but we’ll still give you some since you haven’t messed up your credit either.” Apparently the banks don’t agree.
I rather would like to write President Obama and say, While you’re working on that health reform, how about you work on a credit reform and help people struggling with too much debt be able to stay away from debt by eliminating the need to have MULTIPLE lines of credit. There will always be debt due to education, cars, houses, medical, and other costs but shouldn’t we be trying to get Americans out of CONSUMER debt? How are these loan requirements of 3 active lines of credit HELPING?
We live in a society that PENALIZES those who save their money to buy large purchases. It is not impossible to save enough money to be able to buy a good, though used, car by cash as opposed to taking out a loan. It is not impossible to work part-time while going through school and graduate without any student loans (minus lawyers and doctors and a few other career paths). Should we really be penalized for AVOIDING DEBT where possible?
In the mean time, Xan and I are going to have to play the game of “credit” and get those active lines of credit by getting more credit cards. We’ll play the game to our advantage though, and simply pay the cards off each month and get the cash and other rewads back. 🙂