Valued Contributor
Posts: 1,893
Registered: ‎01-23-2013
Re: Starting Credit

nocredithistory wrote:

At this rate, how long can i see myself in a good score? I got pre-approved for a home loan without credit history but with my sister income included on the transaction as well.

My lender advised to start our credit, to open 3 accounts and to improve working on it for 3 months. Will that work?

Well, that's tricky -- for a couple of reasons.


If you are already preapproved for a mortgage and planning to take the homebuying plunge this year, applying for any new credit now could present problems. General rule is not to apply for any credit for six months before apping for a mortgage. In the very short term, new inquiries and new credit aren't good for your score.


If you literally have NO score right now, secured cards can help you build one. But although you might have a nice little score within a few months, you're generally considered to have a "thin file" until you've had credit for at least six months.


Sometimes loan officers aren't as well-educated about credit as they should be. They'll recommend you get credit cards, which is a good idea, but won't understand that the actual mortgage loan underwriters frown on too much new credit.


So while building your score via secured cards is a good way to go, in either case it could get tricky to buy a house in the near future.


MyFico members who are more experienced in mortgages than I will need to help you work this dilemma out.