How you can buy a house with NO CREDIT
ฝัง
- เผยแพร่เมื่อ 11 ต.ค. 2024
- Watch the other episodes here!:
• Video
Stay Connected:
Instagram: / georgejanko
Twitter: / georgejanko
TikTok: / georgejanko
Join Bubba Club For Exclusive Content!
club.bubbatown...
Business Inquiries Please Email
Biz@bubbatown.com
Cinematography / Edit:
Reed
/ reed.mp4
Blessed are the ones who are humble.
Unfortunately Dave it’s not 1970 anymore and 99% of banks don’t do manual underwriting. This is coming from someone who does finance for a living everyday.
You can literally goggle no credit loans and thousands will pop up.
Dudes a idiot and can't just say boring money is fine. It's his thing even though it's wrong. Boring money for assets is fine just don't borrow money for liabilities
Dude, it isn’t 1970 anymore. You can now spend 5 minutes on google and find the banks that do 😂
Well you obviously suck at your job, because banks do manual underwriting all the time. The go to is credit score + income = auto decision. But they can (and will) do manual underwriting. You can even appeal a decision and ask for manual underwriting.
Well you suck at your job. Banks do manual underwriting all the time. Yes, their default is to auto-approve through the system. But they still do manual underwriting. Fyi: counting your allowance doesn't mean you "do finance for a living."
Bro accidentally exposed that his advice is 46 years out of date
boomers slippin
Bingo😂
@@ivermektin6874it’s only gunna get worse
Exactly what I was gonna say
How is it out of date when you can literally still use it. And you typically get a better interest rate because they have verified you and not just looked at a number.
Not American so this obsession with credit is really alien to me. Credit score doesn't really matter here in Ireland, it's based on your job, your income, deposit, if we give you this loan will you be able to pay it back? It can help a bit if you have previously paid back a loan but it doesn't make much of a difference. Credit cards are rare here as well, you'd only really get one if you've a mortgage and three kids, other than that you just use cash and debit card. Had a mate who moved to the US and struggled to buy a house precisely because he came from Ireland and had never owned a credit card, he had never needed to take out a loan since he worked a good job and was good with saving his money and it was so difficult for him to get a mortgage as a result.
Never mind just read the rest of the comment ,US Irish don't really use credit cards as much as folks in the US
@@IrishPablo94 yeah I'm Irish and really just can't understand, like I get why people use credit cards now in the states because the system requires it, but the system is just weird.
Most of Europe follows this ‘underwriting’ thing. They look at your debt, your intake, your expenses, and your savings and whether you can afford the loan. Higher risk = higher interest rates or being denied.
I use credit card to get miles for airplane trips. But essentially always pay back with 0% interest rate at the end of the month
I’m in the uk and i could be wrong but I think we have a system more like the american one beacuse everyone uses credit cards and people care about credit scores. Sorry if i’m wrong i’m only 14. I wish our system was like the irish system.
It’s the same in Saudi also. Based on the job
As a mortgage loan originator, good luck finding a bank who doesn’t have a minimum credit score and that does manual underwriting. Manual underwriting simply means the AUS doesn’t make the final decision, after getting that denial an underwriter can the review and make the ultimate decision. However, they must adhere to the lending institution’s policies. Just because FHA doesn’t require a credit score, doesn’t mean the lender won’t have a minimum score to lend their funds. He’s not wrong, but he’s preaching about a unicorn lender.
Thank you
Exactly
Not just that, but you will get a worse priced mortgage than every single other borrower who has a good credit score because all lenders view borrowers without credit histories as riskier.
Also, every lender still verifies job and income even if the borrower has a credit score, unless you're getting a non-QM loan at which point you're getting a much higher rate anyway.
He actually has mentioned a lender that does it. I forget the name but there are companies that do it.
Church hill Morgage and tons of small local credit unions. Find a new job buddy
That’s exactly what we do in Italy. The bank looks up your checking account’s history, your job, your income and they may ask you to have a co-signer. And there you have your mortgage, obviously it’s a percentage of your income, let’s say 30%. Not more than that. There’s no credit score, credit score is just bs that exists in the 🇺🇸. The rule is very simple you either have the money or not.
Same in France
Same here in New Zealand. It’s hard getting a loan . A perfect credit score won’t get you a mortgage. It might get you a credit card. You have to prove every dollar earned and spent for the last 90 days.
The us is almost 4X the population of Italy , credit score actually makes sense when you have too keep track of so many people
LOL, my Italian friend, you have a credit score too. You just dont know what it is. You are just oblivious to the reality. You can stick your head in the sand, doesnt change the world. Also, to be sure, just about every person in the world (maybe except sub saharan africa) has a credit profile and score.
Well he's an American and what he's saying is nonsense in the US. No bank in the US will issue a mortgage to a person without a credit score. Minimum lending standards set by banks all include minimum credit scores in the US.
Wow, the manual checks are still done in the UK, thankfully.
And they will take your house if you post against govt. On Facebook
Same as Australia. I don’t know many people with credit cards.
I went to hire a care in the US and she was shocked I didn’t have a credit card. Ended up having to talk the manager into letting me put a cash bond down
same in my country (slovakia)
Same in Germany
Even with a down payment in cash, a job and a co signer, we couldn't get a mortgage when we didn't have credit! Ended up using that down payment money to buy a foreclosed house at auction, fixed it up ourselves and lived in poverty for years until we finished school and got good laying jobs. Thank the lord we own our home and can afford to pay back my student loans while having plenty left to live and save.
@@Eileen49654 that's the goal! We're in Michigan also and I keep telling him we need to buy another house as a rental
Sorry to hear that,I had no problem I put down 40% and only had to provide job info, maybe you should have went with a credit union like I did
@@wesleypepple7525 nah, I'm very pleased with the way it worked out. We are 32 and own our lake front property, payment free. Our ignorance in our early 20s paid off big time. A little elbow grease and patience and our 50k investment is worth 4x what we paid. Not being able to buy our first choice years ago forced us into a home in the country with better schools, lower property taxes, no crime, and more space. We lucked up in the end
Sell the house and get a hooptie
@@wesleypepple7525 yah but with no credit u have to pay that 40% it cuts ur limits down a lot on what u can actually afford for what rates. Guys not saying shi that with crappy credit u get normally crappier rates for mortgages
News flash: it's not 1978 anymore
He doesnt understand this which is why most of his advise is useless. He got into the market when it was easy and he would fail if he tried today. Not a single normal job can buy you property without credit
@@Angrod98 do you know his history? Dave was such a moron back in the day doing everything he says not to do; and lost everything in the 08 mortgage crisis because he didn't understand finances. Now he's anti-everything because he got burned so bad from real estate.
Insane though. In the Netherlands this described method is the only way to buy a home.
This is still very much true. Individual mortgage lenders can still do that.
@@evansl9652yeah....for 3x the interest
As simple as going back to 1978
Great advice!
Contract employees and buisness owners have to undergo manual underwriting here in the US. Goes to show that there is so much you don't know
Basically every other country currently dies what Dave prefers so you’re just American
no not rly, more accurate saying would be just don't go to America.
We all buy houses in the Netherlands using this described method.
So manual underwriting?
@@Johnny91832 we don't have credit score in Europe. They will check if you had previous loans, how long you had job, your income and down payment and that's it
Same in Saudi Arabia
Greece too.
Same in Malaysia
My sister works for a finance brokerage...her entire work life pretty much revolves around manual underwriting here in Australia 🇦🇺 how we got our mortages in the 90's still continues...
I've gone through the manual underwriting twice, each time with a 0 credit score, to purchase both houses I've owned. Its a bit more detailed of a process but can be done without too much headache. Neither one costed a hit with interest rates, either.
Europe basically function this way even today. I personally haven't seen anyone who uses credit card or talk about credit score.
What year is this ? What countries? All applications in Scandinavia take 10 secons to be checked different types of scores no physical banks in sight in years . @@BH-cs8lb
@BH-cs8lb totally untrue.
I'm a mortgage broker in the UK and if you're with a lender that does manual underwriting chances are you're paying almost twice the interest rate
@@tomcampbell9081there are credit scores in the uk? Never heard of it before. Rest of europe just looks at your pay, ratio of debt and checks with the central bank to verify if you didn’t defaulted.
@@tomcampbell9081 We europeans don't count uk in eu 😀
That’s literally almost the same way we have it here in Germany… a mortgage is not needed
Grüß Gott Kamerad 😃
Same in Sweden 😅
If the bank loans you money it’s a mortgage. I think you mean credit is not needed. Unless you’re all buying your houses in full before you move in.
@@kristoffersoderstrom9172precis
That’s a cultural thing though, continental Europe doesn’t have the same desire for home ownership as the US or Western Europe
This comment section makes me realize why we have such a debt crisis in the US
How? They can say something that's true but they themselves be irresponsible with their money. Just because they might suck at saving as individual doesn't mean what majority of the comment section is saying isnt true
yeah bro these people are screwed lmao
They verify your income and expenses and if you qualify they will give money for house,apartment,ground, car...
People are obsessed with being in debt and they just repeat the lies that the credit card companies tell them. As if they credit card companies have your best interest in mind😂 They literally survive off of you being in debt and everybody in the comments here is just vomiting back up whatever they are fed by those corporations 🤡
Dave: don't get a mortgage
Also Dave: rent from my building
he never says dont get a mortgage lol he literally says the only form of debt you should have if your going to have some is a mortgage.
@@jamesviera85 🧢
@@PlusBones th-cam.com/video/xCqTKZcpzqA/w-d-xo.htmlsi=tyxAGwytfqzUHXv4 you welcome
He's never said don't get a mortgage. He literally has advice on his website about the terms of a mortgage you should get.
And renting isn't debt ,
The correct advice is don’t be irresponsible, not don’t borrow money.
Sometimes the unexpected happens and now you're left holding a bag you can't spend. He is just very very debt risk adverse, probably a bit too much but being safe and smart never hurt too much
"don't be irresponsible" is such a vague meaningless advice
If you can't afford it with the cash in your hand don't buy it, simple. Obviously for houses and cars and the like that don't work but that's not what people use credit cards for.
@@theformalmooshroom9147Yeah, as someone fiercely critical of Dave Ramsey, he's 100% correct about this one. Banks are casinos, and the house always wins.
@@princedevitt1158 Don’t be irresponsible as in only borrow what you can afford to pay back. My first credit card was a Discover secured card that I paid the balance off in full at the end of every month… it helped to build my credit as well as teach me good spending habits. As long as you have self control and don’t borrow more than you can handle or make unwise purchases there’s no sense in handicapping yourself by never borrowing money.
He never explained how this is applicable to 2024, he never explained how your rent a car or a hotel without a credit card
You ... Can't pay cash for a hotel? I've done it tons of times. Renting a car, maybe, I've never done it But anything that requires credit, 100% of the risk is transferred off of them and onto you and is almost never a smart idea.
With a debit card bro
Have you heard of debit?
Can’t use debit cards to rent a car.
@@caryphillips4885 you pay cash when you leave. You need a credit card to put the room on. You pay however you want to during checkout. Jesus Christ man
Dave is an excellent advisor for those who are 60 and older
or those that don't live in dystopia that is US
You build credit to get MORE in debt that gives you more credit to get MORE in debt. The cycle continues. 😂
Not true at all but ok.
So accumulate a bunch of residential property on debt, hold for 5-15 years for property appreciation to kick in while collecting rent money, sell off half and you have a fully paid for business that cash flows a shit load per month. My family has 65 units paid for and that was the exact strategy lol. Dave Ramsay gives great advice for most people but people with proper money management can use debt to their advantage.
You build debt if you are irresposible with your finances. I pay everything with credit and pay off my credit cards every paycheck. I get cash back for using a credit card and the rest of the money that is not invested goes into an hysa. Cash on hand is just paper that is how i see it.
@@WeoutherewildinThis is exactly how it works! Its one giant scam!
If you’re a dumbass
From what I've seen, it's mostly just America where your life revolves around your track record of owing other people money.
False a credit score shows you how well you can handle finances which is what Rich Dad Poor Dad teaches
America is one of the most financially stable countries in the world because we have strict Financial standards that you must meet before you start borrowing. Number one know the difference between good debt and bad debt
@@dustinolney3977 A credit scores reflects how well you pay back your debts. Obviously, being financially responsible has a lot to do with that, but there are people with 0 credit scores that are fantastic at managing their finances and have no debt.
@@dustinolney3977 tell that to the millions of your civilians who can't afford to eat
Debt crisis, does that ring a bell?
As someone working for a mortgage brokerage, we do this with every single one of our clients buying their first home. It is just a much more sensible way to go about it, and the banks require the information to be able to lend the money.
Americans: « you can’t do that anymore » « good luck with that » « you’re living in the past »
Europeans : « we do exactly this without a problem »
Most people in Europe rent
@@byron9630no, only in a few countries in Europe most people rent, I believe it is mostly Germany and Netherlands.
@@byron9630complete and utter bs, 70% of europeans own a home
@@rogerdinhelm4671 about 60% of people in the netherlands own a home, about 50% in Germany
@@guusclaes2928 yes, these are the lowest rates of ownership in EU
That credit score shit exists only in the USA ...some communist shit 😅
no it does not and its way worse in asian countries lol
It’s in South Africa too 😂 and most of the world actually 🥲
😂😂 we have credit scores in the UK too.
Uuuuhhhh define most of the world as im pretty sure majority of Europe doesn't have it. Half of Asia for sure doesn't have it. Arab countries...
@@avantech6120 Half of Asia also can't go get $10,000 cash at 18 (personal loan)
I'm not saying it's a good idea, but it's possible, and I know $1,000 goes a VERY long way in the same places that don't do credit. In the US 10k is a small personal loan that anybody with a bank account could get.
*Achieved debt freedom and built a 230k savings in record time, I now have a good house and cleared off my mortgage- thank you, Stacey Neal*
*Brooks*
I keep seeing different commendations about this Stacey, she must be really good for people to speak so highly of her.
She is really a good investment strategist. I was privileged to attend some of her seminars.
That was how I started my cry’pto investment journey
I remain eternally grateful to Stacey as well, for her efforts that got me to this point, finally paid off my mortgage and all debts, what more could l've asked for. She changed my life for good.
Nice meeting people who also work with Stacey, she's the only one I could trust, she got me proflts of 14,OOO with a little start up of 2,5OO and ever since she has been delivering.
Stacy Brooks has really set the standard for others to follow, we love her here in Ontario Canada as she has been really helpful and changed lots of life's
I bought a house last year and I’ve never had a credit card in my life. It’s quite do able actually.
what do you do ifyou want to buy a plane ticket?
@@cavelleardiel debit card lol
@@paulcovey6632so instead of using a low limit credit card to protect yourself from fraudsters, or identity theft, you use a debit card on minor purchases.
@@paulcovey6632 ok. But what about a rental car? Don't they require one? What about booking a hotel? I didn't realize you could use a debit card for flights. It would make sense but now a days it is as though you get held hostage if you don/t have one
@@cavelleardielBro a plane ticket is not exactly the most expensive thing in the world lmao
In my country there is no credit score. Just manual underwriting.
We basically don't use credit cards. The only things you should get on credit is 0% rate RTV or AGD goods.
Which country is that?
@@hichamdbajat9778i bet it's not western because everything that the west put their hands on to modernized turns up toxic trash. Just like the modern females..
@@hichamdbajat9778anywhere outside USA borders
@@hichamdbajat9778 Poland. You should not have higher mortgage than 3x your yearly income.
In times like this with high inflation you can carefully take electronics or so on 0% interests directly in store.
7 years earlier there was also good 100% (not higher) car lease, but this is another topic.
@@hichamdbajat9778 entirety of Europe.
Finally some thing worth seeing.
I followed his program and have been debt free and also own my home. Dave Ramsey is the 🐐
His advice is generally terrible for anyone that is financially responsible. Take this clip for example, he shows how clueless he actually is. Bank lending standards in the US all require minimum credit scores. This isn't 1978 and what he says in the video is moronic.
@@2011blueman wrong, it requires more paperwork but it is possible. I purchased my home this way
@@BoodgerThe additional paperwork you had to do, was because you didn't meet the minimum credit score requirement. See how that works?
@@2011bluemanyou are wrong. There are tons of banks out there that don’t require credit scores
@@fabes326no there is not. Coming from someone who has been writing loans for the literal last decade. There is always a score requirement
This is how it still works in The Netherlands…
And the rest of the world, America is just dumb.
Dude want us to go back in time wow 😂😂😂 such a great advice 😂
I make over 330k a year,always bought things cash never built my credit,when the day to buy a house came ,I was rejected by my own bank where all my business earnings are,all that because my credit was 630😂
Exactly what everyone in this comment section agrees on lol, I learned this the hardway as well, got my credit score up to nearly the 800s now thanks to credit cards like ol ramsey hates, I simply purchase what I'm going to be spending anyway and pay it back on time and in full it's as simple as that
If you never built credit how would you even have a score in first place (630). You are just making bs
#1 You sincerely and honestly have bad credit. #2, For a fact, to have a score that low, you have deliquency and unpaid (potentially) lingering debts in your past. #3, 330k with bad credit is not a flex. #4 Doesnt matter what you make, if anyone pulls your credit for a rental car, insurance, a job, mortgage, to do business with you, you would be preliminarily turned down. #5, Moreover, to be turned down with a self proclaimed 330k salary, means YOUR own bank could not verify your income either. #6 Something doesnt add up with your story, but I am rooting for ya to get it turned around.
@@thewatchfuleye8401shut your mouth
It's so ridiculous I hate how credit scores mean more than if you can afford it
Honestly he’s right, if a credit card wasn’t a necessity today I wouldn’t have one. You shouldn’t borrow money to pay for something you know you can’t afford right then and there, stupid thing that was created to keep you in debt
A lack of discipline is the problem. Getting a credit card doesn’t give you money you don’t have, it gives you access to money you don’t have. Don’t be stupid and you’ll be fine.
My credit card is a $500 limit it's used for gas food and emergency. I don't want the limit any higher
I use my credit card for the points, there's no reason you should buy anything cash, when rewards points exist, Because reward points exist credit card companies make their fees higher in turn stores making their prices higher to cover the fees, making products just that much more expensive even if it's a few bucks more it would be less if fees from credit cards weren't so high so if you use reward points you're actually just paying a fair price for goods because you're off setting the credit fees and junk by getting money back, so unless you're terrible with a credit card then you're spending more money paying cash because you're not getting anything in return just the merchandise you paid for. Anyone saying they don't use their credit card as some sort of flex is either terrible with credit cards or misunderstanding how reward points work
Smh listened to this guy when I was 15 and got my first cc at 21
I use credit cards for everything. I do have an 810 credit score, but that’s not why I do it. You get points or cash back when using credit. As long as you’re responsible there’s no problem. I’ve never paid a penny in interest.
You’re spending more on credit than if you used debit though… there’s studies on it.. they give you hardly anything don’t be fooled into that crap…
You're a good example but studies show that many people go into credit spending with that mindset and at some point fall into the debt cycle
@@daltonmm3675 that's based on an average. The average credit card debt in the USA is like $6000 doesn't mean everyone is in credit card debt doesn't it?
They never said they spend more than what’s necessary because they have credit cards. They said they use credit cards for everything. I spend all my needs for the month with my credit card and boom it gets taken right out of my account at the end of the month. Literally exactly the same thing as when I used a debit.
Same@@betolara4701
The biggest lie we’ve been told was you need credit to buy a house. As a kid they make it seem like you’re doomed if you don’t got credit.
Where I get lost at is when he says do you have the down payment in the bank. so if your putting a down payment on the house don’t you still have to make payments? So don’t you technically still have a mortgage? Isn’t it just to circumvent having to use a credit score to show your worthy of the loan and instead just using your monthly income?
@@racclandtv2292
Dave Ramsey suggests putting 20% down on a house, keeping your monthly mortgage at no more than 25% of your take-home pay and getting a 15-year fixed-rate mortgage. This approach is designed to help you buy a home without stressing over payments. Ideally, you’d pay for a house in cash, but most people can't do that. Yes, a mortgage is technically debt, but you don’t need a credit score to get one. Ramsey believes a mortgage should be the only debt you take on because the goal is financial freedom. For many, this is the best and only way to achieve it because idk about you but mommy and daddy didn’t leave me any money.
@@racclandtv2292Dave Ramsey suggests putting 20% down on a house, keeping your monthly mortgage at no more than 25% of your take-home pay and getting a 15-year fixed-rate mortgage. This approach is designed to help you buy a home without stressing over payments. Ideally, you’d pay for a house in cash, but most people can't do that. Yes, a mortgage is technically debt, but you don’t need a credit score to get one. Ramsey believes a mortgage should be the only debt you take on because the goal is financial freedom. For many, this is the best and only way to achieve it because idk about you but mommy and daddy didn’t leave me any money lol
@@racclandtv2292he’s saying you apparently can get a mortgage with no credit by then verifying income etc. problem is every time I’ve bought a house they verify your income job bank statements and all that anyway plus use your credit so idk what he’s talking about
Down payment, i think he means the first big amount of money. Usually 20-30% of the total cost.
I bought my house in Spain with no need of credit score (we dont have that in our country), no need of credit card ever in my life. Bank gave me 100% of the total cost and i'm just paying It off for the Next 25 years at 3% fix interest.
I like having credit. There are many uses for it even if you’re not actively utilizing it.
Dave Ramsey is so out of touch with modern day finances.
No, the vast majority are out of touch with finances. Most people can't even cover a $500 emergency because everyone lives outside their means.
It’s actually the opposite lol. Americans are out of touch with financial responsibility. I don’t like Dave Ramsey on a personal level in a lot of ways, but his ideas could get of America get back on track
@@williamcox7190 I agree that most people are out of touch but that doesn’t mean Dave Ramsey isn’t out of touch. His advice may have worked 35 years ago but modern day is different.
@@kasebuttram9542 I agree that most people are out of touch but that doesn’t mean Dave Ramsey isn’t out of touch. His advice may have worked 35 years ago but modern day is different.
@@williamcox7190both are true..
What he also ignores is that while you can indeed get a mortgage with no credit score IF you have strong enough alternative credit (car insurance, utility bills, etc) you will actually pay more in terms of interest., and his formula to buy a house is woefully out of touch in todays mortgage environment
Dave is stuck in 1970s. That was 50 years ago and if you listen to him you and buy his books you will be poor and invisible.
Stfu lol. He’s helped millions of people and you probably just spilled cereal in your lap in the couch.
Absolutely well said; he needs to just go sit next to a window and stare out... call it a life Dave, please.
What's wrong with being invisible? Having a quiet, peaceful life is apparently underrated.
Wrong. I've been successful with this route just 2 months ago.
Exactly lol he even smiled when he said 1970s because he knows that deep down
If that Kiyosaki hears you he will write another book😂😂😂
It’s crazy this way doesn’t exist today in the states…every other triple A country does this due diligence. The us is so far behind the times it’s wild
For all you US citizens out there bagging this gentlemen, you’ll are so far out of wack with the rest of the world it’s hillarious
What do you mean due diligence? Even if you have credit score, US banks still verify your income. Indeed, your income to debt ratio is significantly more important than credit score. All credit score means is that you make payments and rent on time, but that alone won't get you a loan.
just find a bank that does manual underwriting. you americans are crazy with getting yourselves in debt.
Dave Ramseys philosophy is a perfect prescription to stay in the middle class. Everything he did to get where he is is the opposite of his advice.
He didn’t build his wealth using debt. He used his income, which is what he teaches. What else are you referring to when you say he does the opposite of his advice?
@@danielgiordano3238 permanent life insurance. He had millions of it and says you shouldn’t get it
Being middle class in todays standards isn’t too bad, 170,000 dollars year sounds great to me
@@AJ-vj3esthink about why its so high
What’s your advice? Dave is preaching do not take 100k in car loans, rack up credit card debt and finance your living room furniture. These are sound ideas. If you are starting a business and taking a loan, are you really working for yourself or are you essentially working for the bank?
My husband and I are in our 20s with no credit card but we have taken out loans and are continuing to build out credit WITHOUT credit cards. We have been approved for a house as well.
Same in Australia. Never even heard of a credit score, and I deal with banks ALOT as a real estate investor.
Income test they call it. (and past history of dealing with banks).
Same in NZ. Now we have credit companies trying to convince people that they need to build a credit score
There is mutiple things the bank would be looking at income test is one part but The banks/finance companies would do credit checks on you as part of the process. Just because they don't explicitly tell you about your score doesn't mean they don't do a check on you. If you sign a applicationform of a lender or broker chances are a check has been run on you (I work in finance and it's literally unheard of not to do a credit check)
My husband and I are in our mid 50's, we own our home and our vehicles, we carry zero debt and are self employeed. We have a great life!! It takes hrd work, but anyone can do it, dont be a slave to your debt!
lmao please share more
I'll keep that in mind whenever I travel back in time in my DeLorean. 😂
Lender here … all those items are checked in a “normal “ mortgage as well. This dude has sonme great advice - his baby steps to get rid of debt are great- BUT unless you are “cash rich” you need credit in this world today. It truly isn’t ‘78 anymore and lastly… NEVER CLOSE A CREDIT CARD ACCOUNT!!!! Cut up the card , don’t use it, put it in your safe … but never do what he says and close these accounts
What is the drawback to closing the accounts?
This ain’t 1978 bro
Apparently you can still buy a house like this lol. I have literally never heard of this though until right now and I’m 30
yeah its 1984
Churchill Mortgage... they're the route I should've taken when buying my 1st home. I pray you and anyone reading this has victory over their finances!
I built my first home last year with no credit score, the bank just looks through your statements and pay slips, and does a debt to income ratio and determine what you are approved for, also needed to confirm i had been employed for more than 6 months
When buying something meant you could afford it, what a shock 😮
I’m an underwriter, and part of my “manual underwriting” process is checking your credit. Lots of people have the ability to pay their bills, but don’t.
Manual underwriting is where they calculate your credit score manually instead of relying on the credit report
No it’s not. It’s verifying you can afford the loan and you are reliable to pay
@@joyfulhomemaker8053which is what credit is🤦🏾♂️🤦🏾♂️ they just simplified it, If you have a low credit score it shows you’re either irresponsible or haven’t had credit for long and if you have a high credit score you’re quite trust worthy
@@joyfulhomemaker8053which a credit report essentially does lol
@@joyfulhomemaker8053what do you think a credit score/report is?
@@joyfulhomemaker8053but then aren’t you technically still borrowing money because you did say afford the loan?
If you don’t have credit but you have money you’re considered an anomaly to banks and the rules are different
Also if you’re low income, but have a lot of assets, mortgage lenders will quote you a high interest rate and then act like they’re doing you a big favor lol. Give all cash offer via low interest margin loan, no down payment, no closing costs 🤠
Great advice when a home costs $30,000
Now is $400,000
Regardless of his out of date advice, dave proves that there are so many credit shills. People that will swear they know how to use credit, yet our credit debt surpasses our car debt. I agree with him in a sense of not getting into unnecessary debt
Yeah and I think what he’s trying to say is nearly all debt is unnecessary. If you can find a way to not get in debt (eg manual underwriting) then take it.
Obviously you shouldn’t take out credit you can’t pay back. But his advice isn’t just out of date, it is absolutely wrong in the US in 2024. Everyone checks credit scores. Everyone. And to get a home in the US, you have to go into some debt. That is inevitable
@@piglin_gold64 not true - im close to paying off my debt and its been a long time coming. Needing debt is just what they convince you and try to force you to believe. If you save and really stave off your impulses, you become more powerful to yourself, more dangerous to these loan sharks, and mostly, more able to withstand financial hardships.
When you take out money, you're borrowing against your future...remember that...
Ramsey is an out of touch clown. Every place I have rented and every job I applied for checked my credit score. Your credit is checked for cell phone plans, insurance, job applications, renter applications, ect. Not having any when I was young closed so many opportunities off from me, so for some 'financial guru' like Ramsay to say it's not needed unless you need to borrow money shows how much he is behind the times and unwilling to learn how things are
It’s so weird how the states do it being from Australia. Manual underwriting, exactly as he explained is precisely how we do it here for everything.
He doesn’t care, he has suckers that listen to him and he gets paid
The US is broken. Unless you’re in regulated markets why tf does your job need your credit score that’s never been true in my case. Plus manual underwriting exists here. Ramsey might be out of touch but your government wants you to lose 🤷♂️
This guys an idiot no job ask for credit check 🤣🤣🤣
Do you know what works better than a credit score? Actual money
Thank you. I am 25 and don't have a credit; I never had one. I bought my car cash down and hope to buy a home the same way.
Credit score is the dumbest thing Ive ever heard of
Its literally just a number that represents if you reliably pay back borrowed money, you can say borrowing money is stupid but a system that tracks that information is needed in a country where the average debt is 100k
Then what kind of interest rate do you get?
That's the real question right there! Dave is going to say people have to put 20% down.
It’s just as good apparently
@@karinaalvarez332no they say at least 5-10% on the first house
Usually around 2% higher.
People with no credit present a higher risk so lenders account for that by charging a higher rate
@@TartarianTopG Patrick Fuller is right. I've been a Mortgage originator since 2005. Expect 2 point increase on rate for manual underwrite at a minimum
Thank you for this information.
We went through the manual underwriting process for our home loan. It is possible. Yes we live in the US.
Can you give me more tips on this?
Interest rate?
What bank
Im a realtor and my client who was a VA client had no credit which was better than having bad credit. They literally did this to him and he bought a house
VA's are different animals because of the nature of the loans.
@@patrickfuller1806exactly. Was gonna say the same thing
VA loans are backed by the government. Apples and oranges
@@natescode ok so how about my other client who had the relationship with his bank to get one with no credit?
Dave Ramsey “I don’t have that stuff because I’m rich selling my books on how to get rich!”
You didn’t listen and just decided to be mad.
@@toomanyrads3827 I listened, he built his wealth off of borrowing money. He won’t tell ya that though!
Dude is giving advise from 1978. I'm not saying that it isn't possible but when I bought my first home there was absolutely no one willing to do "manual underwriting" and I'm pretty sure it hasn't changed too much in the last 15 years. If it has changed, it hasn't changed in favor of the customer.
@@Me-nq4gzPlenty of banks in the U.S. do manual underwriting
@@Me-nq4gz He also pushes mutual funds as a vehicle and he owns several mutual funds so I am not onboard with his teachings.
People dont know about Europe apparently
we don’t care about europe
This is the US buddy.. we're not focused on buying a home in a country we dont work or live in or have citizenship in..
Stick to driving in the left side of the road, buddy. We’re talking All-American over here🦅🇺🇸🎆
@@Oscar61985 dp you realize how stupid you sound? Europe drives in the right
@@nhellson American people don't even care about de US hahaha
I got manual underwriting here in WV, smaller lending institutions still do it and they’re easier to work with.
Yea man. Tune in to Dave Ramsey. You’ll realize you needed it. Become debt free 🔥
🦄👉this is the same man who filed for bankruptcy because he was irresponsible with his credit cards!!!
I have 18 credit cards. never paid a penny and interest! pay my cards in full! cash is stupid!
cash is not King.... if I don't like the product or service all I do is call my credit card company... and many times they give me back the money.
I've actually made money doing this! plus every time I get a new credit card I get bonus!
We need to go back to those times.......
Is still available you can ask to the bank and I see even 18 years old with sport contracts with no credit history at all buy a house this way.
Manual underwriting has so many restrictions! I’m a loan officer. What Dave is talking about it buying in cash 😂😂😂😂
As Nigerians, we dont borrow, we simply create a savings plan and save up the money for the house.
If the money is not yours, you aint rich
Interesting how Americans think debt is their money when it's debt - something you borrow from someone and accumulates interest.
The average sales price of a house in the US is $501,000. The average income is $38,000. Even with a dual income household, home ownership would be literally impossible in this country for many without loans. We are lucky to have paid off our home, but we bought many years ago when prices were more reasonable.
I’m 30 years old in California and have never used a credit card and my life is perfect with no debt on my mind
20 here no credit, paid of car , apartment, parents have no credit taught me Dave's method , they have a million+ in the bank no debt
credit card is basically a debit card if you pay on time, not really something to brag about.
He knew that his answer couldn’t fly
You need Kiyosaki on your show
I would pay to watch that
RK would make DR look like the over confident financial dinosaur that he is
Debatable. It everyone can be RK but everyone can be a millionaire following DR.
740 credit score.
Never had a credit card.
800 credit score 4 credit cards, 23 years old
@@vartanpashayan297791 credit score 1 credit card 21 years old 😏
How?
@@Bosnian.Spartan could be they are authorized user on parents credit cards with no access.
@@Bosnian.Spartan If you're parents have good credit tell them to add you as a authorized user. You inherit their credit history.
so many places, especially out of the country, don’t take cash as payment at stores and restaurants.. so yes you DO NEED A CREDIT CARD not to borrow money but as a form of payment.
Dave's advice is great for anyone who is absolutely terrible with money to get to a point of stability. For anyone else, enjoy your 2% cash back on credit card purchases.
Vast majority of ppl are terrible with their finances and shouldn’t have a credit card. The 2% back is for ppl who completely pay them off every month and don’t carry a balance. Again, the vast majority of ppl won’t do that and the credit card companies hope for that.
@RyanDesmarais I just looked it up, and I'll admit that it's higher that I expected. Apparently 47% of credit card users have carried a balance for at least 1 month in the past year. Still though, I think the advice should be centered around the importance of not spending more than you make rather than recommending this highly conservative tactic universally for everyone.
I have 2% cash back on all purchases, plus 5% on restaurants. So smart me only uses the credit card for food/restaurant purchases and I only use it up to a certain amount. Then pay if off every month. It's a win win 🤷♀️
What if you have bad credit? Would a manual underwriting work?
No
No, you have to wait for 7 years for your credit score to dissipate (meaning, you can’t add to it during that time). Dave Ramsey has a daily podcast and so many resources. Check him out
Depends on how bad , why it is bad and when it went bad.
Here in Australia every mortgage is still manually underwritten.
you need to prove your income, expenses ect.... and everything get's reviewed to see if you can actually borrow the money.
We do this in norway
Very interesting….
Dude. This ain’t the 70s anymore. Bank sees you a number. The higher your number. Your value grows
Australia operates on similar 1978 rules that's why we didn't flinch during the 2008 financial crisis.
His advice is for people with zero self control. Credit comes with more benefits if you aren’t a loser
78% of people with a credit card carry a balance. Most people think they will handle it responsibly. Most people do not.
I wouldn’t call those people losers but agreed that if used responsibly it’s essentially free money
Lol what benefits do you get for having a credit score? 😂
@dmiller4088 credit cards give you points or cashback. I pay off my balance every two weeks and have never gotten a late payment charge on my credit card. Yet once a year, I earn $700 on it. Just because one guy on the internet tells you something, doesn't mean you have to believe it.
In Australia I’ve seen banks recommending that you close your credit cards before you apply for a loan.
It’s free money, cash back. Even billionaires have credit
People who buy things with credit cards spend more money than when they pay with plastic. You’re not smarter than the banks.
Proof that not everyone should give advice.
Just like how things work in Saudi Arabia 😂
That's how we buy houses
When you scam broke people for money giving finical advice of course you don’t need a credit card.
He doesn’t scam listen to his podcast maybe you’ll learn something
@@joshuas.8239 lol, clearly if he is teaching you this nonsense for $19.99 USD, he is a scammer.
He literally doesn't teach anything relevant lol @joshuas.8239
Funny how podcast is free and he talks about all this shit.
He’s giving advice based on a 1978 economy 🙄
This is exactly the system we have in France (and this whole credit thing I only heard of it in the American system so probably most of Europe)
They just check how much money they can realistically loan you based on your income and deposit.
While we still have a credit system, it's really not used broadly and usually just for occasional buys (buying a new fridge or couch those kind of things)
Your system is based on credit, ours is based on debit, both have pros and cons
Credit is modern day slavery. This dude does it right.
Nearly but not quite. He still thinks mortgages are ok. Islam has been saying no interest for over 1000 years. One day y’all will understand
That just goes to show you know nothing about credit
@@Rocioslane No.. You actually are the one who doesnt. Thats why all the big religions forbid it. But of course you are too dumb to understand my statement..
@@joshrentos216 not just Islam. Christianity, and so does Judaism. But with judaism the talmud perverted its meaning. To where they dont charge eachother but they do charge the goy…
This advice is almost 50 years outdated.
That’s how it’s done here in France, no credit score. The closest thing to a credit score here is a Central Bank registry that shows some financial data about you and if you’ve ever bankrupt or banned from getting a loan.
This isn’t the 80s though. It doesn’t work like that now.
go to a better continent like europe
I live like this, works just fine
Yes it does you’ve just been deceived into believing debt is necessary
In Europe it is always like this, the boss's declaration last 3 salaries 10% of the value of the house and it is validated that after the fixed expenses you have money to pay installments. It even helps if you don't have credit debts in your name
Based on the comments it sounds like that's how it works in the majority of the world. American is crazy to get their people in debt.
Dave when he finds out not having a credit score raises you insurance bills
He's right on some things and so far out in space on other things.
All loans go through a manual underwriting process. It’s why we have underwriters and if don’t have a credit score they won’t lend to you. Now you can be a co borrower w a zero score if the main borrower has what is needed for the loan you need.
as a western european i can tell how its still down here. buying a car or whatever on 'credit' is seen here by everyone including the bank as bad money management.
I’m a french citizen. In France, we only fo manual underwriting. Credit score doesn’t exist in our country. They look up your bank statements, to check if you missed due payments in the past 6 months, they check your payslips to verify your salary, and they ask the European central bank if you’re black listed for some reason. If all the lights are green, then you can borrow money 💰
So happy this is the standard in Europe. They just look at every one’s personal finances and than decide what the maximum house may cost.
Dave is correct and you can still do this at least in my state you can this was how I bought my first house in 2016 all I did was put a down payment down while putting up an asset I had for a little collateral proved I maintained a job for 5 years and made the mortgage payments
The elderly man is right on point. Thats how it's still done in Germany till date!
I love the fact he’s describing how you get a mortgage in the UK 😂, I got my house 4 years ago and the process was I wanna buy a house, went through finances and it’s was right well birrownyou this much.