JD: How long does it take to get “excellent” credit?
Ive just immigrated about a year ago to the states from the United kingdom, to live with my wife, we both saved so we could move into a house, but now we go to a lender and my wifes credit is good not excellent and our rate is like 10% which ,in my research ive done is a poor rate, i have just started to establish credit about a month ago with an orchard bank credit card, i know i need at least 3 lines of credit and to pay off ontime or early and not to max out card, ive done so much research on the subject, i just want to know from the time ive just started off in the “no credit history” category, how long does it take to get credit in the “excellent ” category for all 3 bureaus, also, i want to know of 2 credit cards that i am almost guaranteed or guaranteed to obtain, unsecured if possible, i need 2 more lines of credit but when first trying to establish my credit, i was denied so many times “due to lack of credit history”,if possible im looking for no or low annual fees!?Thanks!
Answers and Views:
Answer by keepyoureyeswideopen
First, it can take many years to get excellent credit.
However, if your wife has good credit or even ok credit and you don’t have any you will still be able to get a mortgage rate in the low to mid 6% range. Anyone offering 10% is a crook. Go to your local large bank (i.e Bank of America, Wachoiva, Citi, Chase) and speak with a mortgage rep. As long as you can prove your income you will be all set.
Well! Getting good credit takes a long time, but you need to establish credit over the next two years to be credible. 2 years is where a lot of creditors start to take you seriously. You may have to open up a second card or two to use for the next 2 years, but there is a great article on this from an author on Ezine.
His knowledge is good and he does go into details. Read it and check out his links. This should answer a lot of questions for you, Good luck and welcome to this side of the pond!Answer by SASAUN
when purchasing a home typically a lender/bank needs 3 trade lines reporting payment history for atleast 12 months. Many times a lender will except untraditional payment history on accounts not reported by the 3 major credit agencies. For example: a gas bill, electric bill, sewage bill, trash bill, phone bill, etc. These also must show on time payments for atleast 12 months. ask your mortgage broker for more information if the bank will except this method.
as for establishing credit. the 3 major reporting agencies determine your credit scores based on a number of factors. Roughly 35% is based on payment history. 35% is based on debt owed. a credit card company will increase your rating if you can keep your debt below 40% of the total amount borrowed. ie. credit card has a max allowed amount of $ 1000, keep your balance under $ 400 monthly. if you find yourself over the 40% mark often ask the card company to raise your spending amount and try not to spend. 10% is based on the diversity of debt. this includes student education loan, credit cards, home loans, car loans, etc. this show the card company that you pay different types of accounts on time instead of just debt. 10% in establishing new accounts (what your trying now). the last 10% is general info.
esablishing great credit takes time and you have to start somewhere, which may include applying for a small balance card with a annual fee. as you payment history develops so will your credit score. eventually, you will be overwhelmed by the daily credit offers entering mail….almost to the point where you wished you never applied for credit the first place LOL! good luck!