<prompt> Human: Me and my fiance are trying to take the next step and get our own place. The market is really good in my area and I know between the 2 of us we make more than enough money to afford a house. Right now we are focusing on saving up about 25K-30K as our down payment when we are ready in about a year. We have been planning for months, but today that planning phase came to a halt when I checked my credit score and seen 548. I owe about 2,600 in student loans and 600 went to collections for a phone contract I refused to pay 3 years ago because I felt Sprint didnt handle my situation fairly. Those things have come to bite me in the ass. HARD. I have about a year to drastically increase my score, but I have NO clue where to even begin. Ive been reading articles and threads on other websites, but I feel like they are forcing me to get a credit card as if that is the only way. It would just be nice to hear some advice and tips from the been there, done that people as well as people who may offer any significant insight to my situation. Please, Reddit, what do I do and how do I do it?UPDATE: Got in touch with the lenders for my student loans and they are pushing everything to current. Also, got in touch with AFNI the collectors and they are willing to drop everything for 150. Talked to my fiance and after explaining everything to her she is willing to settle with an apartment for a few years until I get my degree. I also spoke with a credit expert and devised a plan to get my credit score above 700 in a year. Thank you for all your tips and advice!!! I appreciate it!! Assistant: The people who have told you to get a credit card to increase your credit rating were absolutely correct. With every payment made on time you are increasing your credit. The only way to build credit is to show you can responsibly pay on a loan. I work at a high risk auto company and we have people get loans with us just to rebuild their credit.What you really need to ask yourself is if you and your fiance should really be looking at purchasing a house when you are only 21 years old. Why dont you just move into a cheaper apartment until you can comfortably buy a home in 5-10 years? I cannot tell you how many people I have seen who get themselves in so much debt and then something happens to either their job or their health and their only option left is to declare bankruptcy.While owning a house would be really nice, it is a huge commitment that I dont really know if you are ready for and are not considering all of the expenses that go into owning a home.Human: I appreciate your advice. I have applied for 3 credit cards tonight and have been denied on every application. Im going to be sending about 200 a month on my Fed Loans and Im calling the collections agency tomorrow. I am comfortable with getting an apartment for now, but my fiance isnt. She really wants a house and even after going through the pros and cons she is adamant on getting a house. You also gave me a few other good points to try and sway her with.  <response>: If she truly thinks that purchasing a home at 21 years old is a good idea, she needs to reevaluate her thinking skills. The only time it would be a great idea is if you guys had already had a ton of money saved up and would have no worries. It is a bad financial move to invest so much in something with unexpected costs. She is probably not considering closing costs, property tax, utilities, internet and repairs maintenance. I can never explain to people enough that living frugal while you are young and investing money is SO important due to compounding interest. Kids graduate college and think they can just spend every penny then have and they will be fine. 