topic Re: How do I report private loan payments in General Credit Topics

How do I report private loan payments

Anonymous — Tue, 14 Jul 2015 20:57:21 GMT

Hello,

I'm new to the world of credit. I've gone my entire adult life thus far paying for everything outright.

But I'm now in the process of buying a house.

Since I am a 'credit ghost' (I have no credit score whatsoever) I was unable to get a loan through the bank.

my parents were kind enough to loan me the money needed to cover most of the cost. we've signed an official mortgage contract for the total as a 30 year mortgage.

However, I can't seem to find any information as to how I/they can report the payments to the credit companies.

does anyone have any insight as to how I should go about this?

Any help is much appreciated!

Re: How do I report private loan payments

Anonymous — Tue, 14 Jul 2015 22:00:40 GMT

AFAIK, the mortgage holder would have to be a reporting member of the three CRA's. Most individuals are not.

Re: How do I report private loan payments

Anonymous — Tue, 14 Jul 2015 22:12:56 GMT

@Anonymous wrote:
Hello,

I'm new to the world of credit. I've gone my entire adult life thus far paying for everything outright.
But I'm now in the process of buying a house.
Since I am a 'credit ghost' (I have no credit score whatsoever) I was unable to get a loan through the bank.

my parents were kind enough to loan me the money needed to cover most of the cost. we've signed an official mortgage contract for the total as a 30 year mortgage.
However, I can't seem to find any information as to how I/they can report the payments to the credit companies.

does anyone have any insight as to how I should go about this?

Any help is much appreciated!

Welcome to MyFico.

In short, you can't report private loans to the credit bureaus. Think about it; regardless of how actually repay your parents, they could report that you paid on time when in fact you did not. You would have been far better off taking the cash from your parent and putting a sizable down payment on a mortgage and tried to finance it thru conventional means if you wanted to establish positive credit history. What you did though was basically pay cash for the mortgage despite any agreement you might have with your parents.

Regardless of what you did in the past it probably is wise to establish some credit file thru the use of a few credit cards for those events in the future where you might not be able to pay cash up front.

If if establishing a credit file is your goal you could also talk to your bank or credit union and inquiry about the possibility of a HELOC now that you have 100% equity in your home.