What are the 4 differnt types of credit that I need to establish before purchasing a piece of land?

I understand that I need to have a good credit rating.

Lets say, I have a credit score of 780 i'm 22 years old with $15,000.00 in the bank. I'm trying to purchase land for $55,000.00.....

But right now I'm actually 19 years old > with two credit cards open. I've paid the balances of both cards in "full" or Paid more than the min balance each month...

"WHAT are the four different types of credit that I need the bank to look back on when I purchase property?

Like a "Auto loan"-what?>

So what type of loan should I take out to build more credit if I don't need a car?...

any ideas would be appreciated!!!

Thanks

Greg

Some interesting answers here. However, your credit score is based on several factors. So doing one specific thing will not give you(or take away) a set amount of points.

One factor in all types of credit is that you need to make sure you make payments on-time everytime. Every 30,60,90 day late will lower your score.

As for types of credit, it is good to have a mix. However, usually a few credit cards and installment loans will be good. As long as you show good credit management. Do not expect to be at a 780 by the time you are 22. It takes years to build a great history, but only a few bad marks to create a bad history.

For credit cards the major factor is your credit utilization. The best scores will be when you are at 30% or lower utilization. That is your total credit used compared to your total limits. So if you have $2,000 in total credit you should not have used more than $600. The farther you go above the 30% the more it will start to harm your score. The best way to do this is to use them every month(up to the 30%) on purchases you would pay cash for anyways. Then at the end of the month just pay off the balance. This will also show activity which helps your score.

For installment loans, a car or house loan is the most common types. However, you can also go for a personal loan from your bank. Here you put money into a savings account and then take a loan against it. Deposit the loan money into another bank to earn interest. You then use that money to pay back the loan. If you do this a few times in the next few years it will look very good.

You can read a lot on how scores are calculated by going to http://www.myfico.com . This is the company that does the FICO Score which is the most widly used scoring system today.

There is no magical number of items of credit that you need to have to obtain a loan on this land in a few years. Ideally you want to have a good mixture of credit such as 2 credit cards, 1 auto loan and 1 mortgage loan. However, if you only have 2 credit cards that is still very good. Most lenders do want to see 3 different tradelines on your credit report so you may want to get one more. Anything that you do for your 3rd tradeline will be fine, whether it is a personal loan, another credit card, a student loan, etc... Just make sure you keep your payments all on time, never borrow over 50% of your credit card limits, don't go out and get 10 credit cards and no other credit, and keep the number of inquiries to a minimum.

u go through the realtor ... if u have the downpayment and u make enough at ur job u shouldnt have a problem .... i bought my first house with NO credit actually ..

no

more credit cards are the answer.the longer established credit you have the better your chances are in getting money from the banks. i am a mortgage broker and also specialize in vacant land sales.since you only have 2 credit cards you nedd to get a few more but dont over do it.Visit quickiecredit.com and i would suggest in applying for a chase freedom card.It is one of the easier cards to get.After that you should apply once every 6 months for another card.Trust me i was in your shoes once and i remember what i had to go through to establish credit.i am 31 now and have over 28 credit cards with over 200000 in credit lines.

Hers is the real deal, some of thos quacks dont have a clue except for the one guy, he was decent. Now to the meat of thing. Each time you make a payment on your credit card you get points each month right? RIGHT. Now if you pay off your cards and dont use them, your not getting any point to increase your credit score, RIGHT? Like the guy said, use you card card but keep you balances below 50%. If you have $500 limit only use $250 and under. Here is a secret, if you have your balance over 50% and you pay on time every month, you get 20 points added to your score every quarter but if you keep your balance below 50% you get 30 points added to your score every quarter ok. Well go away kid your bothering me :)