Partner Has No Credit History - Going for a Combined Mortgage?

jmal4580 on 29/08/2017 - 09:18
Last edited 29/08/2017 - 12:04 by 1 other user

Hi all,

My partner and I are looking to apply for a mortgage at the end of 2018. My partner requested her credit report and received it today, although she does not have any history.

She has never had any line of credit, and her mobile phone is provided by work.

My question is, when going for a loan in 18 months time is it better to have no credit report, or to apply for a low limit credit card now (I.e Qantas MasterCard) and just use it as a savings card for the next 18 months paying the bill before the due date each month to build her credit.

As always, thank you.

• 

  boomramada on 29/08/2017 - 09:35

  I bought my first house with bad credit rating and 20% savings for capital, had no issues. But always get rejected when applying for CC back then.
  In my understanding, credit history only help you to borrow more.

  Edit: if you still worry, get a pre-approval, now

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  [Deactivated] on 29/08/2017 - 10:31

  Credit ratings are a mystery.

  I get declined on credit checks for some post paid plans.

  Yet i can successfully apply for one of thise ridiculous 40k+ credit cards.

  Never paid any interest etc.

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  CLoSeR on 29/08/2017 - 10:37

  +5

  No, when it comes to purchasing a house not having a credit rating will not affect the application.

  What is more important is how big your deposit is (i.e LVR), evidence of long term savings and your ability to pay down the loan (your income).

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  JimB on 29/08/2017 - 11:18

  +2

  Credit history is like the number of sexual partners your prospective girlfriend has had.

  None is ok but you just don't know how good/bad she is going to be or how she will handle her first debt. Hopefully no tears when she gets her first deposit.

  A few can be a good thing, she has some experience and she will handle my debt just fine.

  A shit load of names on the history, with multiply entries on the same day, A bit of a red flag, I'd be concerned and would want to ensure I protect myself before I extending my credit to her.

  • 

    [Deactivated] on 29/08/2017 - 12:06

    +6

    You're weird.

    • 

      JimB on 29/08/2017 - 13:34

      I've been called worst things.

      • 

        [Deactivated] on 29/08/2017 - 13:39

        +1

        • worse
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  myfuturej on 31/08/2017 - 22:22

  My credit rating was not high, no credit card, limited employment, living in Au less than 3.5 years. My partner was denied cc 3 times because of limited history as well.

  My partner and I got approved for our home loan late last year. The process was very quick and smooth, took less than a month. We got pre-approval then we submitted documents, then full approval. I was sure we can't get approved because I do not have regular employment and we have kids (almost single income and 3 dependents), but the broker was very confident we will get approved. He saw that we are saving more than 30% of our net income religiously.

  We were approved and with a very competitive rate.