• http://quizzlewire John welsh

    My son had unpaid medical bills n state tax bills.He wants to buy a house.8 months ago all his bills were paid in full.I co-signed a car loan in both our names 4 months ago.I have been using quizzle to help him out.his credit score oct 2010 was 561.Credit score April 2011 was 579.His credit score Nov.12,2011 is 633.He has never had a credit card or any credit on his own.The only thing on his credit report now is our car loan.All is well there.He saves 200.00 per week.in 2 years he wants to buy a house.He will have approx.26,000.00 in savings by then.How can he get his credit score to go up so he can buy his house on his own in 2 years. Thank You, John

  • http://yourmoneydrawer.com Bill Rice

    John,

    It looks like you have already made some good progress to helping your son improve his credit score. Building good credit is often a slow and steady race.

    Building credit first and foremost is about paying your bills on time, every time. So I would encourage your son not to ahead of himself (getting credit before he can responsibly manage it), but here are a couple of guiding principles:

    1. Make sure the job (income) is steady and secure. Focus on being highly valuable in whatever he does for work.

    2. Keep growing the emergency fund and the savings for a home down payment

    3. You have good credit, you need to use credit good. So with 1 and 2 secure I would open a credit card. At first, that may need to be a bank account secured credit card. This is almost like a debit card, in that you have to have bank account to secure the credit line.

    4. Use the credit card for small, but regular purchases and pay it off every month.

    5. As his credit improves he might want to get a second credit card to increase his available credit and lower his overall credit utilization.

    6. Most importantly, and it sounds like he is already doing this, he should closely monitor his credit report and score each month to track his progress.

    With the auto loan, a couple of good credit cards, a strong savings plan, and keeping a close eye on his credit report–he should be in good shape for that mortgage in two years.

    Good Luck! Let us know how the plan progresses.

  • http://legacylegal.com/info_ImproveYourCreditScore.asp? Faye J. Bryant

    nice info there bill. i must commend on that. for you john, i would say let your son have a healthy mix of credit. having installment cards and revolving cards would help him improve his credit score.