A Nasty Surprise from the Bank

Hi Scott,

After saving for eight years, my husband and I finally have a deposit to buy a family home. So there would be no nasty surprises when applying for a loan, we ordered copies of our credit files. As it turns out ... we don’t have one. We’ve never had any debt before, or even a phone plan. I’ve been advised to get a credit card ASAP or we won’t get a loan. Is this true? I thought maybe our proven savings and reliable employment history might be enough for the bank to lend to us.

Penny

Hi Penny,

Lean in close, because this is very important.

The next time you meet the person who ‘advised’ you to get a credit card, here’s what I want you to do:

Cock your head to the side. Raise one eyebrow. Purse your lips. Then say, “Talk to the hand, girl, cos the face ain’t listening”. Next, lean back, and wave your index finger at them, while wobbling your head, and say: “The Barefoot Investor tells me that all I need to get a loan for a home is a good deposit, a great savings record, a reliable employment history, and the basic 100 points of identification.”

Puh-leez!

Scott