Because as long as that debt is out there you have the potential of defaulting on it and the entire loan being called immediately.

I understand what the report says although I don’t agree with it.

The best thing you and your partner can do is to both take out a credit card or two and withdraw as much cash from an ATM per month as the card will let you.

Don’t spend the cash, just use it to pay off the full balance each month and you will see a substantial change in your credit rating, especially if you do this for the next 2 years.

Depending on which banks issue the credit cards you take out you may be charged a small fee each time for withdrawing your available credit as cash but there is no better way of improving your credit score.

Income has NO effect on your credit score. It can affect how the bank looks at your loan application, but has nothing to do with how the credit bureaus calculate your credit score.

The more important measure is how much of your monthly income is used to pay debt (car loans, student loans, cc, mortgages). Getting that under 25-30% is pretty important if you want a good rate on a mortgage.

Focus on paying off any credit cards first, then any car loans after that. Student loan debt is considered “good” debt as it cannot de discharged in bankruptcy.

Good luck and I hope you get the house you want!