Building and maintaining a positive credit history requires several key steps: Pay Bills on Time: Timely payments on credit cards, loans, and other bills are crucial. Keep Credit Utilization Low: Use less than 30% of your available credit. Avoid Opening Many New Accounts Quickly: Too many inquiries can hurt your score. Maintain Long-Term Accounts: Length of credit history boosts your score. Monitor Credit Reports: Regularly check for errors and dispute them. To improve your credit score, focus on paying down debt, avoid late payments, and limit new credit applications. For a friend looking to buy a home: Understand Credit Score Impact: A higher credit score can lead to better mortgage rates. Save for a Down Payment: The more you save, the better terms you may receive. Get Pre-Approved: This helps determine what you can afford and shows sellers you're serious. Consider All Costs: Factor in property taxes, insurance, maintenance, and closing costs. Work with Professionals: A real estate agent and a mortgage broker can guide you. Determining affordability involves calculating monthly expenses and ensuring the mortgage payment fits comfortably within your budget. Online calculators and financial advisors can be helpful in this process.