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Ideal Number of Trade Lines?

Established Member

Ideal Number of Trade Lines?

Is there an “ideal” number of TLs in order to obtain a mortgage (probably FHA)?  My husband and I hope to buy a home in ~ 12 months. Our FICOs should be low 800’s. And we should have no negatives at all.  We also will have no debt.

 

I have 5 TLs (AMEX- gold & Optima (22 years), Wells Fargo Visa (15 years) Chase Visa (10 years) and Macys (25 years)). I also have closed out “Paid as Agreed” Student Loans and an Auto Loan.

 

My husband has 2 small TLs- WF Visa (2 yrs), CU Visa (1 year, secured), and he is an AU on my AMEX Gold (22 years, which brings his AAoA to 8 years). Could his low number of TLs in his own name be a problem for us when we try to obtain a mortgage?

4 REPLIES
Senior Contributor

Re: Ideal Number of Trade Lines?

Not likely, but what are his scores.  Really they just need to see 3 TL's to show credit worthiness.    If his scores are lower than yours, it will be his scores that they base the loan on.

Established Member

Re: Ideal Number of Trade Lines?

Right now his scores are low 800s. My only concern is that his 2 TLs are newer and lower limits ($1.5K). I am just trying to get everything ready and in place, so that we are in an ideal credit position when we apply for a mortgage.

Senior Contributor

Re: Ideal Number of Trade Lines?

limit means nothing to an UW.  If anything, large unused credit available is looked at more of a risk, not a benefit.  Whil it does give you an automatic safety net, it also means that your DTI could change drastically if you went out and charged it all up.  This is even more true if the credit is new (less than 1 year old) becuase alot of people purposely get alot of new credit when buying a home to buy furniture, upgrades, neede repairs, etc... 

 

Each of you should have 3 tradelines that have been open 1 year or more.  That is all you need. 

Highlighted
Super Contributor

Re: Ideal Number of Trade Lines?

don't overthink it.... you look fine

 

Retired Lender