I am a full time student (about to be 22 years old), with relativity new credit. No student loans. I do not have an occupation.I have had a credit card since I was about 16. My current credit cars Amex 14,500 limit (no balance). Chase Visa 2,500 (no balance - had balanced for first year because it was zero percent for first year). Target card 500 limit? (no balance). BB Mastercard 1K limit? (no balance). Never have missed a CC payment. Other things affecting credit. I own 5 houses (some are just my name some are me and my father). Primary residence has 150K loan and a 52K second HELOC (which is maxed - to buy other houses). My last credit check a couple of months ago was 765. Is there a way to improve this? I plan to buy more houses in the near future and need as high of a score as possible to be able to be approved because of my lack of occupation. I have 5 rental properties that produce money, my father helps me, etc. Do I just need to put houses in my dad's name till I get a job? How to self-entrepreneurs get approved for a home loan in their first year before filing taxes?
Your score is certainly high enough to get loans. Have you tried and been denied? If so, what were the reasons given? Anything over a 720 usually puts you at a prime level. You may need to use your credit cards to show you can use revolving credit.
Lack of income aka No income. I used to valet part time, but that was all cash and I reported like 3,000 in tips for last year w2
Rental income from your properties should be included in your tax returns. Do you have an LLC or S-Corp for your real estate business? If not, you should set one up with your father and start building credit in the name of your business. Even if you have a personal credit score above 800, getting any type of loan is difficult right now for the self-employed. That's because it's generally more difficult to prove income, and most lenders are following strict investor guidelines these days. That means you need to provide 2 years of tax returns, so you're out of luck if you've been self-employed for less than 2 years. Do you have a personal banking relationship with a credit union or a smaller local bank that lends its own money? You might be able to work something out with them based on year to date audited financials that prove your cashflow can support another investment property.
2 of my houses are paid in cash if that helps any. I do have an LLC set up but it has only been accepting rent, paying mortgage, etc for 4-5 months
Yep, you need to attempt setting up credit in the LLC's name. Good luck with that. Business credit is getting harder and harder to build. Your personal score is good enough though.
