Your credit score can determine what your interest rate on a mortgage will be, whether or not you qualify for a loan and how much you will be able to borrow. It is a combination of your past payment history and the amount that you have currently owe. Managing your credit responsibly will help you improve your credit score.
You should always make your payments on time. Additionally you should work on getting rid of your credit card debt. This will help lower your debt to income ratio and help you to qualify for more money on a mortgage. While it is important to consider your credit score, ultimately your goal should be to have no debt, which can eliminate your credit score after several years. As you pay cash for items you will save interest on the money that you would have otherwise borrowed, which means everything you buy will cost less.
However since you will likely need to finance your home, and you may need to finance your first car, it is important to be responsible with the credit you do have now.
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