How much credit needed to get a mortgage?

[NY Annie]

Originally Posted by spl1981

I don't have a credit card though. I had 3 when I was young and just out of high school and was irresponsible with them. It took me a good 5-6 years to finally pay them all off and once I did I cancelled them. Would you suggest getting a credit card to increase my available credit?

Absolutely get yourself a credit card even if you have to get one where you keep a balance with the card company. It's a good way to establish credit. I have a friend whose credit was destroyed by an exwife. Once he paid off all his (her) debts, I advised him to apply for a secured credit card. He did and was religious in paying it off every month. He had his credit limit increased and increased, no longer requiring security. That was a long time ago and now he has multiple, unsecured, no fee platinum credit cards.

Originally Posted by k374

you have it backwards...if you pay your debts off your credit score RISES not drops! Your % utilization drops and a low utilization results in a higher score!

EXCEPT, as HappyNewMe suggested, a secured loan (not credit card) actually can help.

[msdmoney]

If you know you will be getting a mortgage you can use the cards and pay them off in order to build credit. Just don't get into the trap of focusing more on building credit than wealth. There are a lot of people living month to month that have great credit, but no actual money. Focus on building money not your credit score.

[Themanwithnoname]

Originally Posted by spl1981

I don't have a credit card though. I had 3 when I was young and just out of high school and was irresponsible with them. It took me a good 5-6 years to finally pay them all off and once I did I cancelled them. Would you suggest getting a credit card to increase my available credit?

No.

They look at Debt to income ratio.

NO bad credit and $= good.