You have to pay if you want a CREDIT SCORE.
You have decided that you would like to buy your first house. You've checked out all of the aspects of owning a home, whether it's new or uses, location, neighborhood, zoning, insurance, down payment status, and monthly rates. Then you proceed to the Realtor's office where you find out "YOU HAVE A ZERO CREDIT SCORE"!
Most likely they are going to tell you to take out a loan, to open up your credit and give you a score, before proceeding with your mortgage loan. They may advise you to get a credit card, or take a personal loan. After about six months of repaying the debt, you will have established a credit score and shown how well you pay back the debt.
But what they are not telling you is that know matter how you achieve this credit, you have to pay for it. Taking out any form of credit card, or loan means that you have to pay interest when paying the loan back. You can take out a loan, and immediately return the money. But the second you sign those loan papers, you owe the company the interest fee.
Even the alternative of going to a company that helps you to establish your credit, will charge you a fee. Using a company that reports your monthly rent payment also charges you a monthly fee. Most utility bills do not report your good behavior to the credit agencies. In the long run, you are out of pocket for achieving a credit status.
Once it used to be that if you paid cash on the barrel for all of your purchases, you were a number one consumer. There was no need for a credit score, or to have credit because you paid out right. But in today's economy, everything we do is based upon a credit score. Without it we are black listed from things we want or need. Until there is way to establish credit without paying for it, we will continue to be taken advantage of. Lawmakers should take a serious look at just how much money the public looses and find new ways build credit.
Most likely they are going to tell you to take out a loan, to open up your credit and give you a score, before proceeding with your mortgage loan. They may advise you to get a credit card, or take a personal loan. After about six months of repaying the debt, you will have established a credit score and shown how well you pay back the debt.
But what they are not telling you is that know matter how you achieve this credit, you have to pay for it. Taking out any form of credit card, or loan means that you have to pay interest when paying the loan back. You can take out a loan, and immediately return the money. But the second you sign those loan papers, you owe the company the interest fee.
Even the alternative of going to a company that helps you to establish your credit, will charge you a fee. Using a company that reports your monthly rent payment also charges you a monthly fee. Most utility bills do not report your good behavior to the credit agencies. In the long run, you are out of pocket for achieving a credit status.
Once it used to be that if you paid cash on the barrel for all of your purchases, you were a number one consumer. There was no need for a credit score, or to have credit because you paid out right. But in today's economy, everything we do is based upon a credit score. Without it we are black listed from things we want or need. Until there is way to establish credit without paying for it, we will continue to be taken advantage of. Lawmakers should take a serious look at just how much money the public looses and find new ways build credit.
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