Credit…….And living the simple life.

So….most of my 3 faithful readers know that I decided to purchase my very own little home.

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No…not one of these awesome things, but a small home in a community.

I really thought this would be not an issue.  Until they ran my credit score.  and it came back “0”.

What?  you say?  What on earth?  Do I just not pay my bills?

Actually NO.  About 2-3 years ago I paid off my student loans entirely.  This past year I celebrated paying off my car.  I became debt free. I also lost any credit score. In the past I have actually had a stellar credit score. Debt free is a goal for many many people. It actually wasn’t a particular goal of mine, but as a Quaker, I believe in living a simple life.  If I can’t afford it, I save for it, and do no buy it until I can.  This is a fantastic philosophy when it comes to flat screen TV’s….(I still do not own a flat screen.) It obviously isn’t as great when it comes to a home purchase.

So the loan company is working on establishing “non-traditonal lines of credit” I just needed to provide proof of payment (regularly) of things like electrical services, cable, phone, etc.  So I thought great no problem.  Then I pulled my statements.  It seems that in April and in July, I got a bit distracted, with travel and work, and decided not to pay my bill until the next month.  So WOW, that really put a crimp in my application.  I have no one to blame but myself there, for somehow forgetting or being unable to get the bill paid.

So I had to write a letter of explanation.  I firstly had to explain that I really do have an aversion to debt.  I had to explain one of the tenets of Quakerism is to lead a simpler lifestyle.  It isn’t actually spoken about much these days, which is too bad, but it is pretty obvious when one thinks of simplifying life, that a lifestyle full of credit and debt is not exactly in keeping with the teachings.

George Fox, a prominent early Quaker once said indeed that we should “Owe no man nothing but love”  (I am paraphrasing from memory here, so please don’t kill me if I’m wrong on the exact words.)

He probably also had something to say about paying your bill a month late. I was very irritated that I had done that, mostly due to travel/work, but it sure made things difficult.  If he were here today he might have had something to say about automating payments…which would have been wise for me to do…grrrr.

Secondly I had to explain that I do indeed pay large bills, such as rent, on time. And THANK YOU JESUS, for the past 6 years, I have never been late on the rent.

So I wrote the letter.

Then darn it all, I got a hefty payment for my Nigeria work….all of my friends have been jokingly calling this home purchase “The house that Ebola built”

So I then had to provide a contract to prove that a random foundation didn’t just decide to loan me a house down payment.

I am really tired of providing these documents.  It’s so frustrating as I am really pretty good at managing my money, but apparently…I failed to really understand the way the “credit world” works and thus…placed myself in an uncomfortable position.

Of course I am comforted by the fact that I don’t have any missed payments for months now (Having been at home for months now) so if this application fails, I suppose waiting a few months for the missing payments to drop off is an option. I might get a different home of the units they are building, but I am not that partial anyway….

Still.  Debt free… Grrrrr. I would have been better off trying to buy while the car loan was still open.  Funny thing about that?  I would have been less able to pay the mortgage because of the car payment, but it would have probably secured me the loan.

The financial world does not work in ways that I really understand. It’s a bit much.

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6 thoughts on “Credit…….And living the simple life.

  1. That sounds so frustrating. I know I have a poorer credit rating next to my fiance because when he was at university he got a student credit card where I worked and never lent a penny from the bank. I always thought that you could show that you didn’t need credit you’d have a good rating. Funny how these things work….

  2. Also what is frustrating in my process to become debt free…if I close credit cards as they are paid off, it will severely affect my credit score and my husband’s score as well. Doesn’t make sense to me….if I have no credit bills I guess, like you, it is not seen as a ‘good’ thing. So very frustrating; should be the opposite, really. Good luck sorting everything out. Real estate purchases can be a pain.

    • I so agree. I just can not believe it. But admittedly, I should have been a bit more careful about making some of those payments on time. It just drives me insane because I know that people who have terrible credit and are high risk, are getting loans and mortgages….but me…who paid everything off…

  3. First, let me say I love the new theme you chose for your blog. I’ve been thinking of switching mine to another template, but I haven’t had time to explore all the new ones offered by WordPress!

    I thought it very funny that back when I had massive credit card debt, I had a credit score of over 800. After I sold my house however, I paid it all off and cut up all of my credit cards to get that plastic monkey off of my back. Since then I’ve lived very frugally and paid for almost everything with cash. The only things I’ve charged on my one credit card are car repairs (which are always expensive and always come before payday) and travel expenses, mainly because I’m scared to carry large amounts of cash when I’m on the road. As a result, my credit score has fallen into the low 700s. My attorney said I could increase my credit score by applying for and using another credit card, but I just can’t convince myself to do it.

    I’m due to pay off one of my student loans this month. I’m happy, but I know my credit score will plummet below 700 after that. Hope you have an easier time once you’ve completed all of the ridiculous documentation.

  4. We find anything to do with a bank or a lending facility is so incredibly stressful that it is almost not worth the strain and tension. Hang in there – and just think you will now have a great credit rating due to your mortgage!

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