Just had a talk with my tax accountant on Friday. As the result, I have changed my mind on what is the optimum number of tradelines. I had bought into this idea that 5 or 6 accounts is the best. It probably is for those who have no credit damage. Right now, I have requested new credit accounts to bring me to 10 tradelines plus my auto loan. I plan to buy a home in 2003. At that time, the auto loan will be paid off and I will shrink the open tradelines to 5. I want the closed tradelines to show "paid never late". According to my tax accountant, my FICO score will be higher. It's just his and my opinion.
"Paid never late" "Paid as aggreed" "Paid in full" Has got to be the best thing for a credit report in my opinion!!!
Jim, Is it really wise to have that many accounts? I had 13 at one time, but thank goodness someone hit me in the head with a brick and I got rid of most of my debt. I know have 2 Providians (MC & Visa), 1 Cap One, and a Sears. My Associates MC was cut off 2 years ago (by them) for slow pays. I'd had that card for 10 years and they treated me like a bald-headed stepchild. Anyhow, I'm trying to build up my beacon. Should I get more cards too? BTW, none of my new accounts have any problems and I have a auto loan with 25 months, no probs and Student loan, 36 months, no probs.
Paid and never late sounds good to me. But I have heard that when you apply for a mortgage have only a few cards.
It depends on what kind of mortgage you apply for. In 1994, I bought a townhouse that I presently use as my primary residence. I had close to 20 tradelines and an existing mortgage on what at the time was my primary residence. I used credit card cash advances for the down payment, so that it would be a no documentation loan. It worked. http://www.creditsense.com
What is the interest rates on a no documenation loan?Is it more higher then a mortgage that requires income verification?Just curious.
Yes, from personal experience, a no-doc loan does carry a higher rate. However, it can be your best option if you are self employed.
