I’ve read all the above answers but one thing is missing. The answer to your question. Go to the book store and purchase “Guaranteed Credit” by Arnold S. Goldstein. This book will tell you all you need to know about fixing your credit. It costs about $20.

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Before buying a house, you should be debt-free, have 3-6 months of expenses saved up, and your mort. should be no more than 25% of your monthly take home pay. In your case ($60,000) your mort., insurance, and taxes should be less than $1250 / mo. if 60k is your TAKE HOME.

If your monthly bills (incl. new mort.) is $4000.00/mo, then you need to have $12,000 to $24,000 as an emergency fund saved up before buying a house. If you were debt-free, you could save this up in 18-24 months. You also need to put down 20% on a 15 year fixed mort.

The reason that you need to clean up all of this stuff before buying a house is that if you move into a house with no money saved up, and a mailbox full of bills, you are one layoff of medical crisis away from forclosure.

This is the optimal goal. How much of it you achieve before buying a house is up to you, but it is how you should approach the question.

1. Length of credit history
2. Payment history.
3. Ratio of credit used to available credit.
4. Number of credit inquiries you authorized.

If you cancel your card, you’ll be hurting your credit ratio. (#3).

You want to deliberately keep your oldest credit card open, even if you never use it.

You want to always pay the minimums of each loan on time every month.

You want to keep your available credit high, but actually only have balances equalinig 25% or less.

You want to keep your credit inquiries to a minimum. Try for no more than 3 or 4 per year for any type of loans.

You do these things and your credit score will quickly soar into the 700s.

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Here’s some things you can do.
Get a secured credit card such as Orchard Bank. It’s like a pre paid credit card. You will pay high fees, but if having a good credit score is worth it to you, do it. You dont’ have to keep it forever either. Once they start reporting that you pay on time every single time, you will start getting regular credit card offers in the mail. So, wait about one year after you start using the secured card so that you will have all those green squares on your report. (they sure make a report look good)

See if your parents would be willing to open a joint account with you. Give them the cash up front ( if you can) to show how willing you are to be responsible.

Don’t apply for one single card in the next 9 months to a year.
If you are denied once, you will be denied by everyone else.

It’s hard work, but it will pay off if you can just be patient.

Good luck to you.

Reward credit cards reward you when you spend on the credit card. Normally, you can collect rewards through 3 ways.

* It involves earning cash back on the card, it depends on the amount you spend.
* Next one involves giving points to the customers. They can be redeemed for gifts like cosmetics, shoes, water heater, mobiles and other goodies which the credit card company offers.
* The last method of reward is providing airmiles. Airmiles are highly popular reward, as many customers like to redeem them for free flights or flight upgrades. Whatever type of reward credit card you opt for, carefully note the amount or rate at which rewards will accrue and also read carefully other terms and conditions.”