What Generation are you in? Does this determine your Credit Worthiness?

Lately, I have been working with tons of First Time Home Buyers just as many of you surely have as well.

I have seen a trend with many of these couples regarding credit and their feelings about credit. Remember these are 100% my observations only!

Consider the generation of the 50 and 40 somethings...... This generation seems to have been racked with all sorts of credit problems as a result of the social normalization of credit cards and easy credit. I can remember when having a "credit card" meant that you were special cause not everyone could get one!

Then this generation was bombarded with "everyone can get one" and because of the long time sterotyping that having credit available was GOOD, and desirable, this generation went for it!

Then comes along the children of this generation......

The 20 -30 year olds today..... This generation has preached and preached to the kids about the Evils of credit cards and how tough they can make your life because they are SO easy to get and to over use!

They have heard it all..."dont get them"..."Pay your bill off"..."Buy with Cash".... "live on what you make"...

These young people, our first time home buyers of today are coming to us with another problem indeed! NO credit history at all. Maybe a cell phone provider or a store credit card that they carry no balance on. But, that is it! They tout the evils of credit cards and other loan sources and say things like "As long as I have a DEBIT card, and money in my account... I dont need anything else to mess up my life".

They have cleaner credit than their parents were born with and very little debt load. As long as some sort of credit can be "established" then these guys dont seem to have too much trouble getting the mortgage.

Then we have the 55 - 75 generation....... These guys HAD great credit at one time, but were older when the E-Z credit craze hit. But, being the modern crowd they are, they didnt miss the bandwagon! This generation was truly honored (at first) when they were offered credit.

This group seems to be a mix of ones that were able to keep up and make it work and those that got all tangled in the web of credit problems along the way. In fact, many of them seem to have been entangled but now have freed themselves and are in a better place NEVER to return to the E-Z credit lifestyle again!

This group seems to be ok as far as getting mortgages. They are generally on the downsizing mission anyway and have equity in their homes if they have owned them for a number of years.

Somewhere in between all this generational stuff you have the 30- 45 year old generation...... Who, for the most part are the children of the 55-75 group and were very young adults or older teens when the E-Z credit craze hit!

This generation was right in there with their parents, Enjoying all that life and credit had to offer! Afterall, it was an "HONOR" to be given the right to have opportunities to run up debt.

They have struggled with raising young families during the 90's when" life was ALL GOOD and nothing bad could every happen!" At least that is what we all thought then. Then the new millineum and the world did not end! yippee! The economy soared and so did their debt!

My observations have been that many in this generation are still struggling the most with the economy. They have the most debt load and the most problems with job loss, foreclosure and bankruptcy. This group (in my experience) seems to be having the most difficult getting qualified for home mortgages right now. ITS not impossible, dont get me wrong. These are the ones that seem to require the most work and getting mortgages is a bit "Iffy" .

It is ALL About Balance.

Remember, these are ONLY My Observations over the past several months!

Maria Vaill

RE/MAX True Advantage.