The Credit Conversation Continued - How many trade lines are needed?
I have previously shared with you, from my personal experience, how to increase your credit score in 90 days or less using the "10%" rule when using our credit cards. Once you have accomplished that, its time to take the next step and ensure you have enough "trade lines" to have enough "credit" to begin the Home Mortgage Process. Again, in my experience (nearly 20 years as the Real Estate Guy® in AZ) with the handful of lenders I have partnered with, all ideally want to see 3 solid trade lines of credit, with at least a 12 month history. These trade lines can include traditional Credit Cards, Auto Loans, Department Store Cards and on rare occasions the lenders will take "alternative" credit (but that's another blog topic on its own). For now, you have built up your scores, now make sure you a total of 3 trade lines of credit history, 12 months or more is ideal and remember, NEVER, EVER close a credit card account, you wipe away all your payment and credit history when doing so!
Any questions, remember, there are no stupid questions with me, reach out today: 602-321-6188