Asked by Carla  |  Submitted December 02, 2015

What would be the best way for my son to build his credit in order to qualify for a mortgage?

My son and his wife recently applied to buy a house and were turned down because he has not built up his credit. His wife has great credit. What would be the best way for him to build his credit?

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  Answers  |  2

December 02, 2015

Carla - does he have no credit ? Or limited credit? Does he have scores? Most lenders like to see a minimum of 3 open "trade lines " (accounts) with a minimum payment history of 12- 24 months.

1) add him to his wife's accounts
2) have him open minor cards somewhere (department store / retail establishment) have him use the account and pay off the account as needed

There are some lenders that will allow a borrower to use what is called "alternative " credit (such as verification of rent payment / utility account payments etc.....) but this approach can be a challenge as compared to using "regular" credit history.

One other idea is that a relative could be a co-borrower for them (if needed)/

I hope this helps.
Thanks and all the best

$commenter.renderDisplayableName() | 09.29.20 @ 04:20


December 09, 2015

Building, maintaining, and protecting one's credit is very important in today's world. As your son is married and has not built up his credit indicates that he is behind the power curve and or does not know enough about credit to properly manage it. My suggestion is to first have your son research credit in order to learn the pro's and con's of credit, and what has both a positive and negative impact on one's credit score. I cannot stress this enough. I also suggest that you son find individuals with great credit scores and ask them to teach, coach, and advise him on how to use credit wisely. King Solomon, the wisest man on earth, once stated "that plans succeed with many advisers," indicating the importance of having multiple advisers in order to be successful.

While it may be tempting, I never recommend that anyone ever seek a cosigner or be one. Cosigning situations tend to end badly for everyone involved.

$commenter.renderDisplayableName() | 09.29.20 @ 04:20