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How much does having a credit card affect your chances of buying a home?

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How much does having a credit card affect your chances of buying a home?

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  1. If you have good credit card history, then it's a plus; if it is not good, then that's not good.  But more than anything a home lender is going to assess your current income and therefore your ability to pay your monthly mortgage.  So if you have sufficient current income then that can overcome even a poor credit card history.


  2. In today's market poor credit doesn't work usually no matter what your income is.

    A lender when assessing your credit will look at what the guidelines of the program you will be in.  For example a 30 year fixed rate mortgage with 5% down may require you to have:

    680 or better credit score

    5 Trade lines (these are the number of credit accounts on your credit) For example ...

    3 credit cards

    1 car loan

    1 personal loan

    In addition to the tradelines they may want 3 tradelines to have a 24 month history and two have at least a 12 month history.

    Rule of thumb ... as long as you are responsible with your credit, you will be fine.

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