cancel
Showing results for 
Search instead for 
Did you mean: 

Is family financing wise?

tag
Anonymous
Not applicable

Is family financing wise?

25, with 2 credit card history's - score is great. About to buy condo and was considering family financing. Since that won't be credit building is that a bad thing for my future? Paid cash for this car and l will have cash for next car too. Just not sure if the money savings will be to my advantage if I don't have that history when going to my next home and may not have same family situation. 

7 REPLIES 7
CGeorge
Frequent Contributor

Re: Is family financing wise?

I don't understand what you mean by family financing??

Message 2 of 8
Anonymous
Not applicable

Re: Is family financing wise?

I heard Family Financing is Chex sensitive.

 

 

Honestly, I would avoid it if you can, especially as big and as long a commitment as buying a condo. Life is long and can be unpredictable, mixing money with family/friends can complicate things in more ways than one.

Message 3 of 8
CGeorge
Frequent Contributor

Re: Is family financing wise?

Thanks oldman87 - once you capitalized Family Finance - and I looked it up. I learned something new!

 

I agree with oldman87 - mixing money with family and/or friends - can be very hazardous - to your relationships.

 

If it were me, I would look for a differnent solution.

 

Good luck!

Message 4 of 8
Anonymous
Not applicable

Re: Is family financing wise?

 


@Anonymous wrote:

25, with 2 credit card history's - score is great. About to buy condo and was considering family financing. Since that won't be credit building is that a bad thing for my future? Paid cash for this car and l will have cash for next car too. Just not sure if the money savings will be to my advantage if I don't have that [credit] history when going to my next home and may not have same family situation. 



The other folks have chimed in on the wisdom of mixing money with friendship and/or family.  In my experience, they are right to view that with worry.

 

But your initial question is whether, by failing to get a mortgage (and developing a history of mortgage payments), you are doing something bad to your credit future.

 

Having a mortgage is not important for getting best terms on a future mortgage (or any other credit product).  Nevertheless, people can sometimes be a bad judge of whether they currently have good scores and a good credit profile.  We do not know what your scores are, so if you tell us what those are (and where you are getting them) we can help you assess that better.

 

You only have two credit cards which is not ideal for building a strong credit profile for the future.  It also sounds like your credit reports have no loans on them (though we can't know based on what you have told us).

 

PS.  If you circle back and tell us your scores, see if you can start by giving us your true FICO 8 scores -- tools like Credit Karma are valuable for the reports they offer but the scores are worthless.

Message 5 of 8
CGeorge
Frequent Contributor

Re: Is family financing wise?

CreditGuyInDixie - that is a GREAT answer!

Message 6 of 8
SouthJamaica
Mega Contributor

Re: Is family financing wise?


@Anonymous wrote:

25, with 2 credit card history's - score is great. About to buy condo and was considering family financing. Since that won't be credit building is that a bad thing for my future? Paid cash for this car and l will have cash for next car too. Just not sure if the money savings will be to my advantage if I don't have that history when going to my next home and may not have same family situation. 


Since you say your "score is great" I don't see why it's of concern to you whether or not getting a mortgage will help your credit future. Your scores aren't going to go down because you didn't take out a mortgage.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 7 of 8
Anonymous
Not applicable

Re: Is family financing wise?

Although family financing is the easiest option, but I would suggest you to avoid it. Plain and simple.

 

Money can ruin relationships. Plus, I guess the amount is huge. If you're borrowing money from your family, then get the terms and conditons of the loan documented properly so that there is no place for miscommunication. Okay.

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.