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

By
Real Estate Agent with Realty Executives BRIO

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.

Comments (12)

Paula Reno
Astro Realty (Buyer Agency) - Cedar Lake, IN
Broker, Owner - Cedar Lake Indiana Realtor, Astro

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...

Nov 16, 2008 03:58 AM
Portsmouth NH Real Estate Agent - Rebecca Skane, Realtor®, e-PRO®
Keller Williams Coastal Realty - Portsmouth, NH

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.

Nov 16, 2008 04:03 AM
Tracy Williams Pender
Carolina MaxRealty, Inc. - Raleigh, NC
MBA, Knightdale & Raleigh, NC Real Estate

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.

Nov 16, 2008 04:04 AM
Courtney Cooper
Cooper | Cartwright - Seattle, WA
206-850-8841

yow!  That is crazy!

Nov 16, 2008 04:16 AM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

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.  

Nov 16, 2008 04:39 AM
Thomas R. Martin Broker/Owner ICPM
Investors Choice Property Management - Sacramento, CA
Property Management the way it SHOULD be.

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.

Nov 16, 2008 04:46 AM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

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!

Nov 16, 2008 05:29 AM
Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

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

Nov 16, 2008 05:55 AM
Jennifer Brinson
Mortgages Unlimited, Inc - Eagan, MN

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 16, 2008 06:05 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

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.

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Nov 21, 2008 04:12 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

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...

Nov 28, 2008 12:39 AM
Not a real person
San Diego, CA

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?

Dec 05, 2008 01:14 PM