Credit score

[Cortlyn]

I’m 20 with a 759 credit score, I’m looking into buying my first home within the next year. I had 3 lines open but I paid my car loan off so now I have 2 credit lines open currently how does one raise her credit score? Is it good to pay your credit cards off completely every month? I’ve heard it’s good to pay if off 100% but then I’ve heard to have like $1.00-$2.00 roll over the next month? Is that accurate or good for your credit score? Any advice anyone could give to a 20 year old? ☺️

[Bsch4477]

Pay in full each month. You have an excellent credit score, especially for your age. Keep up the good work. 

[Starkenterprises]

Paid in full each month is an excellent credit strategy. American Express has credit cards that are designed to pay in full each month and pay no interest. The accounts are positive credit history. Your credit score is excellent. You can also shop around at banks and tell them your credit score and situation. They will tell you what is needed to buy your dream home and you can tell them you will be ready in a year. You should qualify for first time home buyer with reduced or no down payment. 🙂

[ghostlyone]

I agree with these other two guys, but I want to tack a bit of info onto what Stark said about first time home buyer "perks". While he's right and small down payments of 10, 5, or even 0% may be possible, I advise against them. If you put down less than 20%, you will very likely have to pay for PMI (private mortgage insurance). This is insurance for the bank that does nothing for you. It's the bank's way of mitigating risk when they hand you a house with very little (or even negative) equity, as would be the case if you made a tiny down-payment. The cost can be up to 1% of your loan amount annually. So, this varies with the cost of your house, but I did quick numbers, and even with a $250k loan and a minimum PMI of 0.5%, that's an extra $104/month you're shelling out in your mortgage payment for absolutely no reason.