- Posts: 1
- Joined: Wed Jan 11, 2012 9:51 pm
- Location: IA
I am 23 almost 24 and applied for my first credit card today through my bank. I have always waited to purchase items when I had the cash to do so. With a home mortgage, for most people this isn't an option.
I was under the impression having no credit history was "neutral". However, I learned today through the bank having no credit history is often viewed as more dangerous than having a poor credit history.
With that being said I need to try and improve my credit score and history. From my understanding the amount of money you spend on it per month should not exceed 30% of the cards limit. In addition, making big purchases or charging items more frequently will NOT improve your rating faster. I was told as long as you pay on time, you could buy gum or pay for your utility bills every month, and the credit rating will improve at the same rate. In other words, the more money you spend does not equal an increased rate in credit building.
I have no outstanding debt or previous credit history, and will charge 1 item per month. What would be a achievable credit score a year from now? 700+ would be preferable if I want to buy a home 1 year from now, but I do not think this is realistic with 1 year.
Thanks for your feedback