Yes it is all crazy!

My poor sister was hoping to get a mortgage loan this year, and since she has no credit cards, paid her car loan with all on-time payments and saved up about 30% cash for a downpayment she really thought she would be seen as an eligible candidate.

Wrong!

Lenders (several!) have told her she needs to open 3-4 “lines of credit” and use them lol.

Why should a good score be based on the fact that you want spend more money than you have? She’s been responsible on her modest income, caring for 4 children and saving, saving, saving.

She and I talked about it and she’s decided to just continue saving cash for now, because she doesn’t want any credit cards! Maybe in another few years she’ll have enough cash to buy a fixer upper home and then put in some sweat equity.