Keep on top of your payments, don't go crazy with spending on credit cards, be responsible, and you'll be alright. Keep in mind, in order to build better credit, you'll have to spend money! Don't get a bunch of credit cards, but once you've had that one for a year, either ask your creditor to extend your limit, or open a new one with a higher limit. Once you can get a credit card with a $5-$10k limit, you'll be able to qualify for good interest rates on home loans. It also depends on the economy at the time. I'd say by that time, the housing market will be growing. Houses will be pricier than they are now, but it'd probably still be a good time to buy. I'll be looking to buy a home in about 2-3 years myself.