How do I get a strong credit history?

Advisory Service: How do I get a strong credit history?
I am sorry if I posting similar question but my life and goal is vitally important.

How do I build a strong credit history to achieve the credit score of 750?

What is a trade line? Someone mentions about having 3 trades line but what does it mean?

I need a plan, I don’t need a simple statement “You have to build credit history”. I know that already but I need to know how to get those satisfying credit score 750 to convince the mortgage and loan company that I can handles $ 150,000.loan.

Answers and Views:

Answer by suzy q
first thing you have to do is pay your bills as soon as they come in and always on time!!

Answer by J H
Pay your bills on time and in full if you can afford it.
the credit card companies hate it….cause they don’t make money…but it will improve your credit faster

Just remember there are 3 reporting agencies, that report your credit. and what you get at one agency is NOT what you maybe getting at the other 2 for a credit score.

Answer by kelbean
Do not pay your credit cards in full because this will not prove a credit history. If your limit on your credit card is 500 keep below 250 – or half. tradelines are credit you have – to buy a house with the least money down you have to have open tradelines for at least 2 years. If you are renting – pay by check – not cash or money order because this will prove a rental history.

Answer by PJ
Always paying your bills (credit cards, utilities, etc.) on time is definitely necessary. But it’s not sufficient.

A few additional things…
(a) You also need to show that you can be responsible with larger amounts of credit.

If, for example, you’ve only had a $ 1,000 limit credit card, even if you were responsible with it, they might worry you couldn’t handle more.

Car loans that are paid off on time are a good and common example. (That said, I personally would rather pay cash for a car and not incur the added interest!)

Higher-limit cards may also help. Usually once you’ve been with a credit card a year or so you can ask for a higher limit. That said, don’t use this as an excuse to buy extra stuff and be sure to pay it the card each month so you don’t waste money on interest!

(b) Don’t open too many cards in the same year
If you open a lot of cards, lenders will worry that you’re getting ready for a spending spree, expect to be laid off, etc.

Also, in terms of a $ 150k mortgage, the bank will not only consider your credit score but also the income you have available to service the loan. That is, they need to see that you make enough that even after you’ve paid your other liabilities (car payment? college loan?) and reasonable living expenses (gas, food, etc.) you’ll have enough left over each month to make your payment.

Good luck to you!

Answer by David M
Borrow and pay your bills on time.