Question when applying for a CC, Own or Rent

[adamkingadam]

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?

[Anonymous]

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@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?

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

[Dalmus]

 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.

[StartingOver10]

^^^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. 

[Anonymous]

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%.

[Anonymous]

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

[Anonymous]

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@Anonymous wrote:

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

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

[Anonymous]

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

[Anonymous]

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@Anonymous wrote:

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

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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. 

[Anonymous]

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.