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What to do to drive your credit to buy a house in a few years?

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Anonymous
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What to do to drive your credit to buy a house in a few years?

I plan on buying a house in 2017. I’ll have about 20k saved for that by then, I have some nasty collections on my credit now, but no judgments, and all are past Statute of Limitations for Florida, so if they sue I will get it dismiss easy.  All charge offs and collections are from January 2009, so they will go out in 2016.

 

I want to build a solid credit for 2017 so to have the best rate possible. Here’s how my picture will look like by then:

 

1.Credit. That's what I need help with.

 

2. Income 40-50k annual.

 

3.Source of income, employment, ebay sales, and tax returns.

 

4. No Debt.

 

5.Employment Same employer for 7 years now, will be 12 by 2017.

 

6.Assets/Reserves. 401k about 10k, 20k cash.

 

7.Location. Palm BayFL32907

 

8.Property.  Single family house,

 

9.Value.  somewhere between 80k and 100k.

 

10.Occupancy.  Primary residence

 

11.Transaction Type. Purchase.

 

I’ll have saved around 20k by then to do as a down payment, and I’m thinking on a 30 years fixed rate. What are the best options to have a good credit in 2017?

 

Right now I got 1 cc with capital one 500 credit limit, and a Fingerhut account with 700 credit limit. Do I need a third account to show history?, I won’t have a car payment, so no mix, I either pay in full the car or don’t buy it, I hate the car monthly payments. My cars now are paid in full. I do not owe money to any credit cards (other than the collections from 2009 that will drop on 2016 past Statute of limitations).  I’ll keep the capital 1 cc for history purposes since it was opened in july 2011, and will be 6 years old by 2017, also starting in 2015 I’ll not do any hard pulls.

 

What steps should I take to have a nice credit picture by 2017?

Message 1 of 5
4 REPLIES 4
Coldness
Contributor

Re: What to do to drive your credit to buy a house in a few years?

2017 is a long ways away. Just one year of solid history can make a score skyrocket. 

 

Maybe another revolving account or two wouldn't hurt. Then just don't get any baddies until you're ready. Simple as that. Keep utilization low, pay in full, all that good stuff. Four years of solid credit history will put anyone in the 700s+. 

Message 2 of 5
Anonymous
Not applicable

Re: What to do to drive your credit to buy a house in a few years?

So two cc, and just keep the good work till 2017, I'll apply soon for a Bj's cc maybe if I'm lucky I'll get it.

Message 3 of 5
MovingForward_2012
Valued Contributor

Re: What to do to drive your credit to buy a house in a few years?

You are almost there! I agree that 2017 is a little too far ahead in the future. Adding a third card will definitely help and working on getting your limits increased will help as well.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 4 of 5
Anonymous
Not applicable

Re: What to do to drive your credit to buy a house in a few years?

I know 2017 is far out, but I wanna have all my ducks in a row, when times comes. So my idea of 2 cl is good enough. I'll probably discountinue the Fingerhut account, I bought a wii for my son with them for Christmas, pay it off with the tax return, cause other lenders like target store card, didn't like me Smiley Sad . I do have old closed accounts in good standing never late before the recession, about 10 of them, they will keep reporting till somewhere between 2017-2020.

Message 5 of 5
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