EDIT: Original title referenced my FICO score, when I actually meant to reference my VantageScore. VantageSCore and FICO are not related, and each uses a unique formula to calculate a score. FICO does not consider the lack of a mortgage in calculating your score.
I just got my credit score, which is based on the new Vantage Score model. My current score is 725 on a scale of 501-990. According to the credit score analysis, one of the primary reasons my score is so low is that I “have no real estate accounts.” (The other primary reasons all involve the fact that I have too much credit card debt. We will have all the credit card debt paid off in a year, so I am not too concerned about that.)
I am interested in improving my credit score because I believe we will be shopping for a mortgage in a few years. I have enough time before then to take steps to improve my credit score in order to qualify for a lower interest rate. But it seems that I am caught in a catch-22: my score is low because I don’t have a mortgage, but I will need a high credit score to get a good mortgage rate. Has anyone else had this problem? How did you work around it?