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So DH started listening to the Dave Ramsey show, and is now convinced that we do not need a credit score to get a mortgage. DH wants me to close all of the credit cards, because he believes it will make our credit scores "disappear". I don't know if this has any truth to it, does it? We are currently paying down our credit card debt, so we can save up a 20% down payment for a 300k house, and we were thinking of going with a Credit Union. We also want to go with a conventional mortgage/loan. Our scores are currently hovering around 670-697, and I was hoping by the time we were ready for a mortgage our scores would be around 720-750. I would hate to make a drastic decision of eliminating our credit score, especially if it will only hurt us in the long run.
Closing all credit cards will cause a significant drop in your scores. I am 100% sure your score will not disappear by closing CCs, it will get worst. Dont know who that Ramsay character is, but my recomendation is to do the opposite of whatever he tells you to do. Good luck, imsure people here will clear all your questions.
No good will come from closing all your credit cards. Besides damage to your score, lenders want to see active tradelines.
NACA will do a mortgage without a credit score, but they have loan limits, and in most areas it is way under $300k. I love Dave Ramsey, but I disagree with him on the whole "no credit" thing. Pay off those cards, yes. Close them, no.
@Anonymous wrote:NACA will do a mortgage without a credit score, but they have loan limits, and in most areas it is way under $300k. I love Dave Ramsey, but I disagree with him on the whole "no credit" thing. Pay off those cards, yes. Close them, no.
Agreed, it doesn't hurt to make small purchases on a card every so often, and then PIF every month. We love Dave too, he's the reason why we've been doing so well getting out of debt.
Thanks, everyone.
@Anonymous wrote:Thanks, everyone.
Please don't close your credit accounts. I have never listen to Dave Ramsey and respect those who do but don't buy everything he says hook, line and sinker. I wonder what data he has to back that up.