Wondering.....

[Anonymous]

thanks for all the great input!!!! I have decided to stand my ground. I am not going to cave and get a credit card that I don't want or need. I'll wait until the score requirements go down or my score just goes up on it's own. The banks will have to lower the standards a bit eventually or the housing market will never recover. Even with the tax credit the gov't offered the increase in buying was minimal because of the banks refusal to grant loans. The credit scores didn't get us into the mess it was the banks who gave gave loans to people for much higher amounts than they could afford. When they come to their senses I will still be here.

[daisyduke]

HI DaisyMae,

I would suggest that you cruise on over (if you have not done so)  to the Understanding Fico Scoring tab on this board. You will see that FICO likes 2 bank cards reporting - that HELPS your score.  Just b/c you have the CC doesn't mean you have to max it out. You can use it in a responsible manner. Why not do everything possible to manipulate your score so that you get a good interest rate on your mortgage?   the longest loan of your life....

Also there is a good post about the new CC law and new FHA requirements on this board. Read this if you have time:  http://ficoforums.myfico.com/fico/attachments/fico/creditcardact/1/1/Credit%20CARD%20Act%20and%20new...

Just wanted to share with you a few things/thoughts.

Good luck to you and best wishes.  

[Anonymous]

I doubt we'll see the credit scoring system disappear any time soon.  The FICO score is a method designed to predict likelihood of future default.  Unfortunately, it's just statistically that on average people with lower scores are more likely to default on a debt than people with higher scores.  Lenders want something to help them qualify loan prospects, and unless there's something better out there, they'll use FICO.

You're right, it isn't fair.  There's a lot about it that isn't fair.

Who knows what the future holds, but mortgage rates are at historic lows right now.  Those who can claim some expertise in the subject say that interest rates are unlikely to stay this low forever.

Also, the experts that I've read seem to be pretty confident that the credit market will not get easier any time in the foreseeable future.

Finally, I've read a number of sources that say that eventually we'll see higher inflation than we currently see now.

Of course, experts are wrong all the time, but if those trends are true -- interest rates rising, credit not getting easier, higher inflation, then it seems like owning would be better than renting.

Maybe it's worth getting a few credit cards, just to play the game.  There are some fairly good credit card options out there.

[trdmlc]

Have you considered NACA loan program?  It sounds like it might be ideal for your situation, since credit score is less emphasized than spending habits.  Here is the thread on these boards:  http://ficoforums.myfico.com/t5/Mortgage-Loans/The-Official-NACA-mortgage-thread/td-p/341849