How many CC's does one need for a new mortgage?

[longtimelurker]

And though this doesn't seem to apply to the OP, there have also been reports at the opposite end, where an applicant had "too much" credit (probably not so much the number of cards as the total CL) and the bank wants some closed to reduce the perceived risk.   I don't think this is common, I would guess more likely when there has been a fairly recent large increase in credit without history showing responsible use (or rather non use) of the credit line.

[Swapmeet]

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@jonmyers wrote:

My personal experience from a few years ago: I had only two active tradelines and a FICO of 666 when I purchased our house in 2009.  A year later, when my mortgage changed, my banker told me that I would not have been able to buy the same house if I was purchasing at the time of change; they now require a minimum of three tradelines and a FICO of 700.

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You could have gotten a loan from somewhere else for less....I think FHA is 620 and 2 TL open for a year or more....or something of the like.

[pizza1]

I really appreciate everyone responding!!! The mortgage thing is new to me, as I will be a first time home buyer and get so confused with the process. I figured if I started early and here at the boards, by the time I'm ready to purchase financially, I'll be prepared in all ways

I currently have 3 cc's, and in August will be closing out my commerce bank secured visa at the 1 yr mark, leaving me with NFCU and cap 1.
My plan is to add another major with NFCU and Barclays by end of 2014, and have a total at that point of 4 cc. That way I can garden another a year and have no inquiries for one year, and all others aged down and off! Plus my util will be at 1-3% at the time of apping.
Those details are easy to do.....if just coming up with the cash the next few years for down payment and waiting the 2 yrs post BK7 discharge which will be 08/19/2015.

Something to look forward too!!! thanks again for everyone's input!! Really helps me out !

[jodyd302]

no no no dont close out that older secured card. that will lower your overall credit age, as a result you score will go down ...

12-01-13 myfico sores ex=718/ eq 719.... 7 credit cards

[09Lexie]

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@jodyd302 wrote:

no no no dont close out that older secured card. that will lower your overall credit age, as a result you score will go down ...

12-01-13 myfico sores ex=718/ eq 719.... 7 credit cards

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Closed TLs may stay on your CR's for up to 10 years- thus your AAOA will not be impacted. 

[irrational]

To the OP,

it it really depends on the underwriter and also the mortgage product. FHA loans typically have more forgiving criteria. I got my FHA loan back in April, and only had 1 credit card (from 2003, and still active), but I had a 80% util, recently rehabbed student loans (that we're not yet reporting as rehabbed), and a couple of baddies from 2008/2009.

They simply requested letters showing the student loans as having been successfully rehabbed, but not mention of util, only one CC or the two baddies... 

So, all that to say, without context, I'm not sure the number of credit cards is a hard and fast rule.

[jadeite788]

I had only two credit cards, but I heard on t hese boards the magic number is 3.

[alip]

I just went thru mortgaging a newly built home.

My recommendation is for you to work with a credit consultant/mentor

I used a local company [mod cut]

They were a huge source of information and everything they told me panned out.

One key thing I learned is NEVER let the balance of your credit cards exceed 10% of your credit limit.

I did it just once during the mortgaging phase and sure enough, my FICO score dropped a few points the following month.

Once my balance was paid down at or below 10%, the points went back up.

If you have any bad credit reports, they will put together a whole packet of letters that you can send to the credit bureaus to get them cleared.

There was a couple on mine from 10-15 years before - they got them removed.  My FICO score went up each time one of those was removed.

It was well worth the investment for their guidance.

mod cut-website 

[casemill]

Ok, don't kill me, but I've never obtained a mortgage. I bought my house from my father in law with a contract for deed sale. But I beleive that you need to have at least a credit card, a store card, and one other kind of credit like an auto loan. All of them need to be currently paid, with no recent late payments. 

[alip]

It's not about how many credit cards you have, but the balance in relation to your credit limit, your income and other revolving credit lines - along with payment history.

You have 3 FICO scores - you need to watch those.  Your middle score has to be above 640 to get a mortgage with most lenders.

If you have bad reports years before, you may have to write letters of explanation for the mortgage company.  However, the past 12 months is critical.

They want to see history - I had 1 CC that I've had  for 17 years and 1 department store CC plus car loan and prior home mortgage.

That was it and I was able to mortgage a very nice home.   My FICO was very good and my payment history was excellent.

The mortgage company was thrilled because I wasn't in over my head, but still had showed consistent history and on-time payments.