Becoming a Homeowner in the U.S.

Helping ESL students learn about how to buy a home in the U.S.

Ways to start a Credit History

August 10, 2009 by dianewallis · 4 Comments · Uncategorized

Melissa and Elisa - MEDA

When you buy a new home, you need to borrow money for the mortgage. So, the bank will want to check your “credit history” to see if you pay your bills on time or not. Some people don’t have a credit history because they haven’t used credit cards or taken out loans before. So, it is important to start to build a credit history so that when you get ready to buy a home you can get a credit report that shows information about your credit history. A credit report will list a special number called a FICO score. Usually the number is between 300 and 900. The higher the number, the better your credit is and that will help you get a better interest rate on your mortgage. So, having good credit can help save you money.

Listen to Elisa and Melissa talk about different ways you can start to build up your credit history. Take notes and write down two or three ways you can start to build your credit history.

MEDA – Start Credit History

4 Comments so far ↓

  • Chanh

    Hi Diane,

    Thank you for sharing this blog with me !!! It’s really helpful for my family.

    So far, we have a realtor who is helping us to deal with the bank and the office of housing in S.F. ( we are in the first-time home buyer program ). We’ve attended the class to get certificate …..

    I just want to share with you about the interest rates on the morgage. Last week we met with the housing counselor and he said to us that we need to know about the points in interest rates. He said that the higher interest rates the lower the points and the money form points goes to the lender. For example :

    $ morgage interest rates points

    $350,000 5.125 % = $1905.70 0% = $0

    ” 5.00% = $1878.88 0.75% = $2,625

    ” 4.875% = $1852.23 1.5% = $5,250

    We are now dealing with this….

    Diane ! Thanks again for the blog !!!!


  • Chanh

    Diane ! It shows on the blog differently on my writing. Here is it :

    $morgage interest rates points

    $350,000 5.125 % = $1905.70 0% = $0

    $350,000 5.00% = $1878.88 0.75% = $2,625

    $350,000 4.875% = $1852.23 1.5% = $5,250

  • Chanh

    Still differently and it’s hard to understand, I’ll try another way. The blog don’t appove my comment because of the word ” mor-gage ” , so I write the wrong one but still understand. Hope this will work. Here is it :

    $morgage ———— interest rates ———— points

    $350,000 ———— 5.125 % = $1905.70 —-0% = $0

    $350,000————– 5.00% = $1878.88——0.75% = $2,625

    $350,000————- 4.875% = $1852.23——1.5% = $5,25

  • dianewallis

    Chanh this is great ! I really don’t have any experience with this and I appreciate you teaching me and sharing your information and understanding. Thanks very much !


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