I live in Nigeria and very few people knows of the existence of credit worthiness. Most times people don’t acquire loans buy houses so they never had good chance of knowing about CS. However there’re very few real estate companies that accepts down payment and mortgage
How do people with your country purchases property than if I may ask? Without acquiring a loan are they simply paying the entire amount up front for the payment of the property or are is there a payment plan that they have with the seller of the house, similar to how they are renting out the place? If this is the case then what sort of collateral is given to the seller? Can you please explain more on the purchasing procedure in Nigeria If you do not have to take out a loan.
Most people do not own a house cause they think you can only purchase a house with cash only. For example if there’s a property up for sale by real estate agency, people make sure they’ve the complete payment before buying the property. Very few people are aware of their credit worthiness.
Credit score requirements differs from one country to another. The requirements mentioned above is mostly used in USA. For other countries, higher credit score is required when trying to mortgage a home. Also there’re some that are lesser than that
Very true, and this has been the normal thing in developing countries. Aside credit score other important requirement is collateral. It determines the amount you will be able to get from the financial institution.
Exactly @maventiger , if you do not meet these requirements, they can approve you a credit for an amount less than requested, or simply deny it. You must cover the loan in some way, since it is the guarantee that the bank has to ensure that the payment will be made satisfactorily.
This is actually considered to be a very good way to purchase the house because you are not getting yourself into any more debt. Generally when people purchase houses, and they take out a loan based on their credit rating they don't have to pay back the money in instalments. Sometimes it can be very hard to achieve, Hannah can put a severe financial burden on them and the fact their way of living as well. Paying the complete amount in cash upfront prevent this from ever happening in the future and ensure that the people purchasing their property are financially secure enough to be able to manage it in the future.
I think credit loan should not be taken because you have to return it with interest. You should buy property with your available money. If you are not doing so you are putting yourself at risk. And you are responsible for this.
I think credit loan should not be taken because you have to return it with interest. You should buy property with your available money. If you are not doing so you are putting yourself at risk. And you are responsible for this.
Not only that. In some developed countries the type of bank account you’ll be allowed to open is determined by your credit score. For example in USA, there’re some banks that do not accept low credit score for checking account such as Wells Fargo, chase and many more. Credit worthiness is very essential in those countries
@Kamon c4 I'm really impressed you know more about the financial system there. It happens in developing countries too, especially in Nigeria where banks like standard chartered, zenith and the likes looks at that before operating an account with them.
I never knew Nigerian banks review credit worthiness before accepting a user. The first time I got to know Nigeria uses credit score was when a credit score building agency showed how important it is to have a good credit before traveling out of the country for education or other purposes. What’s the required credit score to open a current account with the highly rated banks?
This is one of the best replies I’ve seen so far. However, mortgaging a house requires a high credit score in some developed countries. Credit score higher than 580 can easily mortgage a home with less down payment and monthly mortgage. The credit scores requirement varies with the location
Very true, one of the reason credit score is insignificant is because there is no let documentation and agency to monitor individual credit rating, I once saw a legal contract between a mortgage bank and a customer that had credit rating as one of the requirements for approval.
Very few people knows about This. Everyone wants to pay for their houses in full. Credit rating is easily accessible in the bank. Your personal bank can help youwith knowing your credit score and the benefits of high scores
Okay, you said something right, that credit score is used to grade people that have used mortgage before. If one have low credit score, their is every possibility that the person won't get a loan from the mortgage bank until he or she builds the credit score higher.
