Home : Blogs : Ashley Berg *Seattle's Green Real Estate Agent* : Ashley 's Blog

"Now Accepting Credit Cards For Down Payment and First Month's Rent!"

I came across a post on Craigslist today that read:

"Now Accepting Credit Card For Down Payment and First Month's Rent!"

Seriously? I was appalled when I read that and immediately had to email the person who posted it and give them my two cents. I know that sometimes I react first and then think later but I really feel like these people are doing a disservice to their clients. The reason I love my job is because at the end of the day, I know I helped someone to build their wealth and realize their dream of being a homeowner. If I knew that they had to charge their credit cards to do this, I would almost bet that they would probably sink pretty fast. If they have to charge the downpayment and first month's rent, where will they get the funds to take care of the the big and little fixes that come hand and hand with being a homeowner?

Please don't buy a home until you know you have the funds to cover all of the things that can happen. Leave those credit cards alone and use them when you REALLY need them. I hope this company gets their act together and helps us to clean up this industry rather than being a contributor to the mess.

Posted by Ashley Berg *Seattle's Green Real Estate Agent* on 11/16/2008 11:50 AM

Comments (12)

Credit Crisis in the ActiveRain Channel

credit card downpayment

12 Comments on "Now Accepting Credit Cards For Down Payment and First Month's Rent!"

NOV

And this is why we are in a credit crisis, Some people will do anything to make a sale. Some people have no morals Please do not beleive you can buy someting just because you have a credit card...

Well, it is Craig's list. They are trying to rent themselves rather than hire an agent and so they don't know any better. Desperation has set in.

Ashley, I've been told of someone who used an advance from their credit card to make the downpayment on their house. I can't help but wonder if they had a Realtor "representing" them because that definitely doesn't sound like it was done in their best interest.

yow! That is crazy!

Wow. Just amazing what people will push these days. Every single credit advisor will warn people and potential buyers to reduce thier credit card balances and revolving accounts. Dont make any large purchases. Prepare to budget and plan wisely.

Now someone offers something like this to scam consumers who shouldnt even be purchasing in the first place. Didnt they learn thier lesson the first time? This is why we are in the current mortgage mess.

We are still a society that does not like to use "spent money", but I think we are finally getting the message. The layoffs and profit losses of big retailers is a clear sign that we are slowly getting better at saving our money. I hope the trend continues.

Not only can the large transaction hit their credit score and really hose the deal, If the purchaser disputes, it really will hit the fan.

Ignorance can be corrected, stupid is for life!

Nuts' on the application for a mortgage it clearly states; "Is any part of the down payment borrowed?"

OMG, That is crazy! Thank you for posting that! I just wrote my own blog about another craigslist post in which a loan officer had mentioned to email him a brief description of what they were looking to do, and he would email back a rate quote! If my job was that simple-that just makes us look bad!

NOV

I see it as a rental vs a home purchase and most people who rent don't have what it takes to buy a home and are usually living month to month and if they are being evicted from their present home because a landlord is selling, then maybe the credit card is the only option they have to come up with the first and last months rent to get them into a new home.

Just a thought, but as for a purchase...I'm with you, no way should a credit card be used for a down payment.

NOV

Ashley, I have to agree with Todd. I see people in the Tacoma area doing this and they have to have pretty good credit to be able to charge that amount anyway. The banks I'm dealing with wouldn't allow this with a home loan...

DEC

I remember when grocery stores started accepting credit cards. I was appalled. I thought that if you needed to put your groceries on a credit card, you might need a second job. Then the credit cards started offering airline miles, car rental miles, shopping miles, hotel miles, Zoo miles, this miles, that miles, everywhere a mile mile. And guess who started charging his groceries? Not to mention everything else -- telephone bill, car payment, anything and everything. And those airline miles, hotel miles, and car rental miles have let me go places, stay places, and rent some cars that I otherwise would not have gone, not have stayed, and not have rented.

Isn't credit what makes the world go round?

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?