How long does it take...?

Question

to establish enough credit to buy a house?

we (me and my husband) just got a few credit cards a couple of months ago, because when we went to go get a loan we were denied becuase we didnt have any credit

i have a credit card and i dont work...im a stay at home mom but my husband works...dont ask me how i got a credit card w/o a job i dunno!!

Answer 1

Mortgage companies like to see at least 2 years of a positive credit history before they will even consider you for a loan. Positive history means that you show activity, pay on time every time, and don't use more than 30% of your credit limit. A good thing to do is to use your credit card for purchases you are going to pay cash for anyways. Then at the end of the month pay off the account to avoid interest. This will show activity and a good payment history.

However, if you only have a few credit cards, and no other types of credit, that will not be enough. You should look at getting something like a car or personal loan. A good way to get a personal loan is to put say 1,000-2,000 dollars into a savings account and then take a loan out for that amount using that money as collateral. Put the loan into another bank and pay the loan off with it. This will cost you some in interest, but it will also improve your credit.

Answer 2

Only charge on those credit cards what you can afford to pay in full at the end of the month. Don't carry any balances. Always pay on time.

After 2 years of good, on time payment history, your score should be high enough to buy a house.

It would also be an excellent idea to set up a savings account and put away a set amount every week. This will give you a nice downpayment which will also help you get a better interest rate.

Answer 3

Please don't use those credit cards especially without a job. It's a trap that can get you into debt instead of establishing credit. THROW AWAY THE CREDIT CARDS.

The best way to establish credit without getting into debt is to open a savings account with $400 or so. Come back a week later and ask for a secured loan agains the $400. They will give it to you. DO NOT SPEND THIS MONEY.

Take the $400 they loan you and open another savings account at bank #2. Leave it for about a week and come back and get another secured bank loan for the same amount.

Go to bank #3 and open a third savings account with the $400 the previous bank gave you. Come back a week later and get a secured loan for $400.

It is now about week number 3-4. Go back to bank #1 and use the last $400 to pay off loan #1. You can close that account.

The following week pay off loan #2 and close that account. The following week pay off loan #3 and keep that savings account or close it. Regardless, you have paid off 3 bank loans in 45 days and that looks VERY good on any credit report.

You can get a department store credit card and buy earrings or something small and pay the whole thing off every month.

Don't carry over balances.

Credit card companies make money off the interest on these cards. Your job is to be smart and FIRST not carry a bunch of credit cards. Keep one debit card as you will only spend what you have.

Never just pay the minimum if you do have a credit card. Pay it off and stay in control. The best control is not to have them to begin with.

Answer 4

There are many things that go into a credit report. A steady job/career is a big part of it. If you're changing jobs every few months......that's a big red flag.
They usually like to see about two years of steady work....
With credit cards, start with a bonus one that offers cash back and a generally lower interest rate. Then only use it on something you can pay off EVERY month.

Answer 5

It's based on payment history and on time payments you will need quite of few months to start to establish credit and there is a thing as too many cards....charge something small on it each month so you can make a payment on it but be responsible only charge what you can afford on it....also each time you apply for a card you take a hit on your credit report

Answer 6

I'm guessing you're going to need a couple of years of excellent payment history on your credit cards (and other bills) to build enough credit to get a mortgage. You'll also need to be able to show stability, as far as employment, and not be carrying too much debt at the time you apply for the mortgage.