If I get a few credit cards during college and never default, how long would it take me to qualify for a mortgage?
2006-08-13 18:27:55 · 4 answers · asked by endsjustmeans 3 in Business & Finance ➔ Credit
just wondering... would I qualify any faster if I had more than one credit card and paid them in full every month?
2006-08-14 01:22:18 · update #1
Your income to dept ratio has as much of an impact as your credit score. Also, a down-payment makes a huge difference as well.
Another thing that is looked at is your total dept/ total available credit. So, it is much better to pay your balance off than to just make the minimum payment. This all gets compiled into a Beacon Score and you want to be over 700 to get the best deals.
Good luck
2006-08-13 18:36:11 · answer #1 · answered by Jocephous 2 · 1⤊ 0⤋
I strongly recommend not to get a "few" credit cards during college. Many college students graduate thousands of dollars in debt by having just a "few" credit cards, and this is an awful way to begin life on your own. You have worked hard in school to gain a better income and more opportunities, don't risk it.
You can build a strong credit history through maintaining a single account, and making regular timely payments to it. It benefits your credit history to have your oldest card remain active and current on payments. Mortgage qualifications are not dependent solely on credit history and credit score. You also will need to meet income qualifications by showing that your total monthly house payment does not exceed a percentage of your total monthly income, and also by showing that your monthly house payments do not exceed a set percentage of your debt repayments, including car loans, credit card balances, and other debts. The total monthly payment will include repayment of principal and interest on the loan, a portion of taxes applicable yearly to your property, and mortgage insurance if you are unable to provide at least a 20% down payment. Lenders may also have qualifications based on length of employment. You may be able to gain approval for a mortgage earlier by using a cosigner.
2006-08-14 01:41:43 · answer #2 · answered by Freddie 3 · 0⤊ 0⤋
Just get one credit card and always pay in full every month. Showing faithfulness in paying off student loans or a car loan (if you must get one) will also help. The main thing is to show that you aren't in debt, or when you do take a loan (like student or car), you pay it off as quickly as possible.
2006-08-14 03:09:48 · answer #3 · answered by midlandsharon 5 · 0⤊ 0⤋
get a credit card and pay on time...then you can easily qualify for a mortgage
2006-08-14 07:50:40 · answer #4 · answered by hen d 2 · 0⤊ 0⤋