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Should I close accounts now?

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LRC
Valued Member

Should I close accounts now?

Hello,

 

I am trying to plan ahead for a mortgage in 1-2 years. I'm working on my credit report this year.

 

I'm wondering about the ideal credit card mix. My question is this--how many open credit cards should I have ideally for a mortgage? And how many of those should be with major banks? Do lenders look down on non-major banks and not count them towards mortgage approval?

 

For example, in building my credit, I got a card with Mission Lane that  has 3k cl and cred.ai with $1500 cl.

 

If I'm able to replace them with major bank cards, do I keep these cards or cancel them now? Both have been around 6-9 months, so I don't think they're doing anything great for my credit age. 

Thank you in advance for any and all advice!

July '24
FICO Score 8:
Equifax 645 | TransUnion 699 | Experian 707
emergency fund at 50% of goal
ccs: Fidelity Visa cl $9500, Cap One Quicksilver cl $3000, Mission Lane cl $3000, cred.ai cl $1500

Rebuild start Jan '24
Equifax 599 | TransUnion 609 | Experian 626
no emergency fund
2 REPLIES 2
MauiMan85297
Established Contributor

Re: Should I close accounts now?

No need to close them, when we or AUS look at your accounts it doesn't matter if it's a starter card or a $50k CL card, what is looked at it is the monthly payment amount (goes toward DTI) and on-time payments.  Doesn't matter who issues the card as well and as long as you have at least 3 trade lines then that's all that matters.



Message 2 of 3
LRC
Valued Member

Re: Should I close accounts now?

Thank you--this is very helpful!

July '24
FICO Score 8:
Equifax 645 | TransUnion 699 | Experian 707
emergency fund at 50% of goal
ccs: Fidelity Visa cl $9500, Cap One Quicksilver cl $3000, Mission Lane cl $3000, cred.ai cl $1500

Rebuild start Jan '24
Equifax 599 | TransUnion 609 | Experian 626
no emergency fund
Message 3 of 3
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