topic Re: Question when applying for a CC, Own or Rent in Credit Cards

Question when applying for a CC, Own or Rent

adamkingadam — Tue, 26 Jan 2016 00:37:06 GMT

If you own a home but no mortgage (not on the mortgage or paid off) If you apply for a credit card, should you be checking the box for own or rent? If you check "own" but they pull the CR and show no mortgage on the CR, would that auto deny? Should you be applying as a "renter" instead?

Re: Question when applying for a CC, Own or Rent

Anonymous — Tue, 26 Jan 2016 00:53:38 GMT

@adamkingadam wrote:
If you own a home but no mortgage (not on the mortgage or paid off) If you apply for a credit card, should you be checking the box for own or rent? If you check "own" but they pull the CR and show no mortgage on the CR, would that auto deny? Should you be applying as a "renter" instead?

Check the own box. You own the house so it's the truth. In reality though, it makes no difference which box you check.

Re: Question when applying for a CC, Own or Rent

Dalmus — Tue, 26 Jan 2016 17:23:25 GMT

99% of the lenders won't care whether you own or rent. They really just want to know what the payment is for their risk evaluations.

Re: Question when applying for a CC, Own or Rent

StartingOver10 — Tue, 26 Jan 2016 17:31:07 GMT

^^^all the pp are right. For the monthly obligation for ownership you would put in the amount of your taxes and insurance (divided by 12) + HOA or condo fee if applicable.

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 02:30:25 GMT

Just as a general observation, hubby and I rent a small single-family home, and it doesn't appear that the singular fact of being a renter has harmed me in getting credit at all. I have close to $40K total tradelines, including being AU on one of hubby's cards. However, our rent is only 0.0053% of our annual income. Yes, you read that right: 0.0053%.

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 02:36:47 GMT

If you click own and no mortgage shows up on your report. Flags may be raised.

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 06:27:43 GMT

@Anonymous wrote:
If you click own and no mortgage shows up on your report. Flags may be raised.

So legally you can't be an owner if you have no mortgage?

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 06:37:16 GMT

We choose 'own' because we're doing an owner finance. Haven't had any issues with a mortgage not being on our reports

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 08:12:20 GMT

@Anonymous wrote:
However, our rent is only 0.0053% of our annual income. Yes, you read that right: 0.0053%.

Hmm... If your rent is only $50 for the entire year, and that $50 represents 0.0053% of your annual income, then your annual income must be nearly a million.

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 10:18:17 GMT

It doesn't really matter to the creditor whether you own or rent. Just always tell the truth. I have friends back where I used to live, who are executives, making $250k +/- per year. They do not buy real estate, simply because their tenures, geographically, are relatively short. They have lived in high end condos, but they seem to get transferred all over the world, so it doesn't make sense to buy. The friends I have also have some very, very high end and high limit cards.

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 11:40:12 GMT

$50 a yr for rent with $1,000,000 annual salary would be 0.00005 according to my math.That poster said rent was 0.0053 of annual salary.Not that any of it has anything to do with the op's question

Re: Question when applying for a CC, Own or Rent

takeshi74 — Thu, 28 Jan 2016 14:48:21 GMT

@adamkingadam wrote:
If you own a home but no mortgage (not on the mortgage or paid off) If you apply for a credit card, should you be checking the box for own or rent? If you check "own" but they pull the CR and show no mortgage on the CR, would that auto deny? Should you be applying as a "renter" instead?

The question is own or rent, not mortgage or no mortgage. If you own the home you're not renting it. Answer as is appropriate for your situation -- not what you think may or may not lead to a denial.

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 19:14:43 GMT

@Anonymous wrote:
$50 a yr for rent with $1,000,000 annual salary would be 0.00005 according to my math.That poster said rent was 0.0053 of annual salary.Not that any of it has anything to do with the op's question

They said 0.0053%, not 0.0053. And the OP's question is absurd anyway.

Re: Question when applying for a CC, Own or Rent

bdhu2001 — Thu, 28 Jan 2016 19:22:16 GMT

@takeshi74 wrote:
@adamkingadam wrote:
If you own a home but no mortgage (not on the mortgage or paid off) If you apply for a credit card, should you be checking the box for own or rent? If you check "own" but they pull the CR and show no mortgage on the CR, would that auto deny? Should you be applying as a "renter" instead?
The question is own or rent, not mortgage or no mortgage. If you own the home you're not renting it. Answer as is appropriate for your situation -- not what you think may or may not lead to a denial.

Be honest. The creditor only cares about your monthly expenses and your honesty (i.e. you aren't trying to commit fraud).

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 19:30:35 GMT

@Anonymous wrote:
If you click own and no mortgage shows up on your report. Flags may be raised.

Well, there are cash sales to consider.

Re: Question when applying for a CC, Own or Rent

adamkingadam — Thu, 28 Jan 2016 19:30:47 GMT

@Anonymous wrote:
@Anonymous wrote:
$50 a yr for rent with $1,000,000 annual salary would be 0.00005 according to my math.That poster said rent was 0.0053 of annual salary.Not that any of it has anything to do with the op's question
They said 0.0053%, not 0.0053. And the OP's question is absurd anyway.

Absurd? Its a logical question. If you own a home but paid it off and thus have no mortgage and you apply for credit and they ask if you own but no mortgage shows up on your CR, logically it might throw up a red flag. I don't see how the question is absurd.

Re: Question when applying for a CC, Own or Rent

Anonymous — Thu, 28 Jan 2016 19:36:18 GMT

@adamkingadam wrote:
@Anonymous wrote:
@Anonymous wrote:
$50 a yr for rent with $1,000,000 annual salary would be 0.00005 according to my math.That poster said rent was 0.0053 of annual salary.Not that any of it has anything to do with the op's question
They said 0.0053%, not 0.0053. And the OP's question is absurd anyway.
Absurd? Its a logical question. If you own a home but paid it off and thus have no mortgage and you apply for credit and they ask if you own but no mortgage shows up on your CR, logically it might throw up a red flag. I don't see how the question is absurd.

Yes, absurd. The question is do you own or rent. Owning a home does not imply you have a mortgage. Don't overthink things and start questioning whether you should lie.

Re: Question when applying for a CC, Own or Rent

Involver — Thu, 28 Jan 2016 19:55:42 GMT

@Anonymous wrote:
If you click own and no mortgage shows up on your report. Flags may be raised.

No they wouldn't.

Re: Question when applying for a CC, Own or Rent

JcT21 — Sat, 30 Jan 2016 03:29:30 GMT

i own my home with no mortgage. when i applied for my discover card i had to fax in proof of my identity and speak with an account specialist about my home ownership. they had to verify that i owned my home without a mortgage. they didnt need any documents, just my verbal confirmation. so in my experience, if you check own, and a mortgage dont show up on your report, the lender might want some sort of clarification. im sure it varies lender to lender because discover was the only one so far that has even brought that up.

Re: Question when applying for a CC, Own or Rent

Gunnar419 — Thu, 28 Jan 2016 22:14:33 GMT

@Anonymous wrote:
If you click own and no mortgage shows up on your report. Flags may be raised.

Never raises any flags for me. Plenty of people, especially the older crowd, own but have no mortgage.