Thread: How to improve your credit score to buy a house in 1 year?

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

you are correct.

I got my first credit card Nov 2010. As of Nov 2011 my credit score was around 730 or so. I did have payment history with student loans (full paid at the time). I also opened a credit card a month before checking my credit report. Both of those things would affect your rating as compared to mine.

Get some credit cards (2-3) and see where you are in a year. After 6 months or so on your first card, you may be able to get a rewards card that gives you rebates/cash back on things you already purchase ( gas, groceries etc.)

I can teach you how to get your credit score above 700 within a year.

Here is the catch though....

YOU WILL NOT BE ABLE TO GET A MORTGAGE TO BUY A HOUSE WITHOUT A 1 YEAR HISTORY ON 3 DIFFERENT TRADES.

Try to get 2 credit cards, and one small loan... after 3 month of continues payment and being on time you can achieve above 700. Your debt to credit ratio has to be very low.