In order to build credit, I suggest you take into consideration all your obligations before building your credit score. Based on your statements it seems that you are on a right track, since you said that you have made all the payments on time. Considering the factors that affect your credit score, which is payment history then it could probably increase considering other factors have the same status.

If you already have the information regarding your credit status, it is advisable to transfer the balance of your existing credit card with a much lower rate and pay it through automatic debit arrangements with your bank. With regards to your existing card, don't close it since it would affect your credit score.

Accordingly, "using your cards regularly should ensure that your report is updated regularly. It also will keep the lender interested in you as a customer. If you get a credit card and never use it, the issuer could cancel the account."

Of course any timely payments reflect as good on your credit history. Get the free credit reports and go over them to make sure all the info' is correct. You will also see that they go back a couple of years for timely payments so making them happen can't be a last minute thing. Additionally, carry a small balance on your credit cards as opposed to paying them off in full. But be aware that overall debt ratio is a big factor. This is available credit you have to the actual amount you have outstanding. Keep it around 25% or less. And that ratio has to be on all the cards in distribution. Not two cards maxed out and five others open. One thing that pops up alot on credit reports that people find out about at a mortgage is hospital and doctor's debt that is put out for collection even though no attempts have been made to collect it. Also make sure your spouse's reports are in good order. After your credit and your FICO score the other thing is your work history. If you hop jobs every six months and it is out of the norm in your industry it won't look good. Also having some cash in the Bank as savings is a plus and any equity accounts you may hold. Additionally the Banks will look at your overall position to the amount of money you want to borrow and in today's climate they are turning down people who stretch it out to the last penny of income.
A small piece of side advice have a few grand on the side for when you move in. Incidentals add up fast. A new bed or furniture or paint, moving expenses. Or the suprise washer that breaks after the second time you use it. Good luck with your new home!

Hi KerryK!. As is the case with making timely payments on credit cards, making timely payments on all of your accounts will have a positive effect on your credit score. Timely payments on your accounts and a number of years of credit history are two of the biggest factors that affect your credit score.

This is why it is important not to close an account because doing so actually lowers your average length of credit history and also lowers your balance owed to available credit ratio which can also lower your credit score.

So in short, if you have an average credit history of at least seven years; you have done well in making payments; you use a low percentage of your available credit on each account; you should be in good shape when you go to apply for a mortgage loan.

Yeah, that definitely helps. In fact, I can't think of anything that looks better than making all your loan payments on time. That's exactly what lenders want. If you need any additional info you can check out the link below. It has info about credit reports and how to improve them. You can even have a free 15 minute consultation with one of the loan educators and get your questions answered (for free!). Hope this was helpful. http://homeloanacademy.com/