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No Credit – How to Establish Credit Before Purchasing HUD Homes

While some potential buyers have a problem with their credit report, another common problem for potential buyers is no credit at all. The good news is that buyers can work on establishing credit before purchasing HUD homes. Many measures may be taken by buyers to establish credit. For instance, simply borrowing some money and paying it back in a timely manner can help to establish some credit

Another excellent way that credit may be established by potential homeowners is by using Pay Rent, Build Credit, Inc. (PRBC). This service helps consumers to use recurring bill payments and rent payments to help build a positive credit history. Consumers can build a historical credit file by using various multiple payment accounts, including phone bill payments, insurance payments, rent payments, utility payments, student loan payments and more.

By making use of credit card, online, ACH, phone, and debit payments, electronic recipes that are date stamped can be sent to PRBC to help build credit files that are independently verified. Without having to take on any new debt, those without a credit history can easily show that they are ready and able to handle larger financial obligations, such as a home mortgage on HUD homes. This offers just one excellent way that potential buyers of government foreclosures can establish and show credit worthiness to potential lenders.

Buyers can work on establishing credit before purchasing HUD homes.

Next: How much can buyers afford?

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