Jefi Moultrie

8693 La Mesa Blvd, Unit B

La mesa, CA 91942

8693 La Mesa Blvd, Unit B

La Mesa, Ca 91942

(619) 729-4185

How Long Does It Take to Build Credit History From Scratch?

How long does it take to build credit history? If you ever plan to buy a house, establishing a track record of past payments is essential, because it proves to mortgage lenders that you’ve paid people back (which means they’ll be more apt to loan you money for a home).

Still, if you have no credit history—because you’re young or just never bothered—how long does it take to build it from scratch?

Here’s the straight dope: Done right, it can take as little as six months. Done wrong? It can take several years. So if you’re in a rush to establish credit to buy a home, you’ll want to know the right way to go about it! Heed this advice to learn what to do.

How long does it take to build credit?

At a minimum, you need to open at least one credit card in your name. From there, you just need to make a purchase using the card, and then make a payment. Once you’ve made your payment, your creditor will report your payment to one or more of the major credit bureaus (TransUnion, Equifax, and Experian).

“Typically, it takes at least three to six months of activity before a credit score can be calculated,” says Tracy East, director of communication at Consumer Education Services in Raleigh, NC.

Once you’ve established credit, you still have some work to do. Credit histories are scored based on performance, much like the grades you got in school. Healthy credit behavior—like on-time payments and staying well below your credit limit—lead to a higher credit score.

What’s more, there are two types of scores: VantageScores and FICOscores. Some mortgage lenders may look at a VantageScore, but FHA lenders are required to use FICO scores.

“After opening their first credit account and beginning to make timely payments, it will take at least three months for the person to generate a VantageScore, and six months to have enough information to create a FICO score,” says Martin Lynch, compliance manager and director of education at Cambridge Credit Counseling of Agawam, MA.

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And the longer you demonstrate good credit behavior, the higher your score can climb from there. In other words, a couple of on-time payments is nice, but years and years of on-time payments is far more impressive, and reflected in your score accordingly. In fact, the length of your credit history can count for as much as 15% of your credit score.

What credit score do you need to get a mortgage?

Your initial credit score when building credit will typically be in the 660s, which is considered on the low end of “fair” (fair scores range from 650 to 699). It could be just enough to buy a house with some lenders, but not all, because lenders vary regarding the minimum credit score they will accept.

You should also know that while a “fair” score may get you a mortgage, it won’t qualify you for the best mortgage—in terms of interest rates and other deals. To get better mortgage rates, you will need a good score (700 to 759) or an excellent score (760 or higher). Unfortunately, achieving these scores will take (you guessed it) more time.

How to speed up the credit-building process

To establish a payment history, use your card reasonably. Make payments on time (or early, if possible). Setting up automatic payments can help. East recommends keeping your balance below 30% of your credit limit and, ideally, paying it off in full each month. These simple steps will eventually push your score from fair to good to excellent, allowing you to get the best rates for your mortgage.

Here are some other ways to speed up the credit-building process and ensure your credit history and score get off to a good start.

  • Become an authorized user on someone elses account. This can be a parent, friend, or relative who has had the account for at least a few years and has a good payment history. You dont need to use the account or even have a card. Once youre added as an authorized user and that fact is reported to the credit bureaus, it will instantly affect your credit and may generate a score if you dont already have one or, at least, give it a boost.
  • Get a secured credit card or loan. If youre having trouble qualifying for a traditional credit card, try for a secured credit card, which is “secured” by a deposit. This means that if you default or stop paying, your deposit will be used to pay off the account. This lowers the risk involved for the lender, which makes it more likely to offer you credit even if you dont have an established credit history.

Also know that when it comes to mortgages, your credit score is just one piece of a larger puzzle. According to Lynch, your lender will also look at your employment history, how long you’ve lived at your current residence, and your credit references.

2018 Sales

A look back at 2018 and all of the wonderful homes that Jefi was able to help clients buy or sell. Presented by Jefi at THRiVE La Mesa

9127 Berkview

[email protected] (619) 729-4185 [email protected] (619) 729-4185 $500,000$500,000$500,000$500,000ABOUT 9127 Berkview Ln, Spring Valley, Ca 91977A warm welcome awaits as you are greeted by your...

8031 Sarawak Drive

Walk through the front door where you will find an inspiring home to call your very own. The alluring living area, dining room and stylish kitchen, all join together to where the open concept is perfect for captivating your audience.

672 Tyrone Street, El Cajon, Ca 92020

672 Tyrone Street in El Cajon, Ca is a spacious and elegant home. Listed at $699,000-$749,000 and located in the Fletcher Hills Neighborhood.

1527 Donita Drive, El Cajon, Ca 92020

Great Location with Panoramic Evening Lights & Mountain Views! 4 Bedroom Plus Office, 2.5 Bath Home Situated on Usable 1.39 Acres on Quiet Private Street with Horse Facilities & Potential RV Parking.

3863 Paula Street La Mesa Ca 91941

$475-499K. Quiet La Mesa cul-de-sac bungalow on a great street close to shopping, freeways and schools.

6625 Hillgrove Drive

This beautiful home located in the highly desired neighborhood of Del Cerro is ready for your family to move in! Contact Jefi at THRiVE Real Estate La Mesa.

2073 Via trueno

RANCHO PALO VERDE EUROPEAN VILLA sits atop a lush green, 2 acre lot, this 5 bed 3.5 bath European influenced home has all the amenities. Travertine flooring, 30′ foot ceilings, formal living and dining rooms, a first floor bedroom with en-suite bathroom. Large family room with surround sound, set off the “Cooks” kitchen and pool area

9773 Alto Drive

Beautifully landscaped .6 acre view lot with southwesterly views. Patios peppered around for maximum enjoyment. Granite boulders adorn the rolling landscape that holds this very special craftsman style home.

10465 Miracle Waters Ct.

facebooktwitteryoutubegoogle-plus [email protected] (619) 729-4185 facebooktwitteryoutubegoogle-plus [email protected] (619) 729-4185 Price Reduced: $574,000 - $599,000 3 Bedrooms, 2.5 Bathrooms, 1,918 SqFt Price: $574,000 - $599,000 3 Bedrooms, 2.5 Bathrooms,...

3660 Helix Street Spring Valley

525K-550K Enjoy southwesterly views from one of the 4 well maintained decks with access to dining room and kitchen. Remodeled bathrooms, all new carpet, paint, dual pane windows, solar and so much more. Enjoy the large landing above the family room. Vaulted ceiling and space to roam make this home extremely comfortable. The owners have loved this home and taken excellent care. Yard is very large and has tons of usable space. A very large stamp crete patio is perfect for entertaining or basketball!

4807 Sunrise Valley Dr

Gorgeous custom home in the coveted Horizon Hills area of Mt. Helix. Situated on a 3/4 acre lot at the end of a quiet cul-de-sac this 4 bedroom 3 bath open concept home is a great place to entertain both indoors & out.

5845 Jan Drive

Located in the sought after neighborhood of Fletcher Hills. Just blocks from Grossmont High, Harry Griffen Park and easy freeway access. This home has been completely redone inside and out.

4623 Harbison Ave, La Mesa, Ca

Priced to sell, Move in Ready, and Great for entertainment. This home is located in the heart of beautiful La Mesa and ready to be yours.

4500 Normandine Place

A beautiful home in the heart of La Mesa, with 3 bedrooms, 2 baths, an amazing yard with beautiful landscaping this home will not be on the market for long!

6944 Daventry Street

Ultra Sharp Family Home In Quiet, Well-Maintained Neighborhood. Good Sized Rms, Wood Floors, Storage, Bright/Light/Airy & Clean Move-In Condition. Nice Fenced Landscapped Yard With Fruit Trees, Bird Aviary, Shed & Garage. Near Schools, Shopping & Parks. On A Hill w/A Great Open Feeling & Views Of The Hills/Valley. Come See!

8151 Beaver Lake Drive San Diego CA

San Carlos GEM! 2 blocks from Pershing Elementry/Middle, San Carlos Rec Center and ALL San Carlos has to offer. This single story with 2 master suites, open living, dining and family rooms has a great feel for family or shared living situations. Home has new exterior paint, an attached 2 car garage, electric run for a jacuzzi and a very private patio. This large lot has mature fruit trees, irrigation and is fully fenced. Come take a look!

4367 Vista Way, La Mesa, Ca 91941

facebooktwitteryoutubegoogle-plus [email protected] (619) 729-4185 facebooktwitteryoutubegoogle-plus [email protected] (619) 729-4185 4 Bedrooms, 2 Bathrooms, 2,810 SqFt Price: $650,000 4 Bedrooms, 2 Bathrooms, 2,810 SqFt Price: $650,000 4 Bedrooms, 2...

10740 Challenge Blvd

Country living within La Mesa is that perfect vibe for people that love the east county city country feel. From the living room window, Mt Miguel can be seen in its entirety through the landscape of pine and bougainvillea. This split level has all bedrooms down and fun living up. Come make this home your own!

243 Horizon Hills

This 4BR/3Bath single level Ranch has been re modeled from head to toe!! Over $100,000 in upgrades.

5775 Lambda Lane, La Mesa, Ca 91942

La Mesa cul-de-sac home. Walk to local restaurants, Jackson Park and Murray Manor Elementary. Very clean, freshly painted with new carpet. Dual pane windows, & newer roof, plus large closets and great storage. Lots of great space in this home, large second story room would make an excellent game room, family room, or even build it out as a second master suite. Endless possibilities for charming La Mesa home.

5914 Hughes

facebooktwitteryoutubegoogle-plus [email protected] (619) 729-4185 facebooktwitteryoutubegoogle-plus [email protected] (619) 729-4185 4 Bedrooms, 2 Bathrooms, 1,532 SqFt Price: $475,000-500,000 4 Bedrooms, 2 Bathrooms, 1,532 SqFt Price: $475,000-500,000 4...

5134 Randlett, La Mesa, Ca 91942

Walk to La Mesa village and all it has to offer. With a story book front and backyard, grass, level, fun for entertaining. Don’t miss the view of the top of Mt Helix. Hardwood floors, coped ceilings, open and bright, this place has 1950’s charm with upgrades.

6059 Amaya Drive, La Mesa Ca

This mid century home is ready for you. Just move in! All new paint, both interior and exterior, new roof, new windows, modern touches, remodeled kitchen and baths. Home sits high above Amaya and has a beautiful and tranquil backyard. outdoor yoga anyone? Attached garage with direct entry to the house.

9433 Terrywood Rd. Santee, Ca

This single story home lays on top of a flat lot with TONS of potential, there is plenty of space on this large lot to store your RV or boat, a secure two car garage, and a sparkling blue pool in the large backyard. This home is ready for you to make your own!

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