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CREDIT MYTH - You should Only Have 1 Credit Card

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Published on Oct 12, 2010

http://LeahCoss.ca
Hello everyone, how are you? It's Leah Coss with the mortgage center. Just wanted to do a myth buster on credit, a lot y of people think that the best way to have a good credit score is to keep it simple and have just one credit card. Pay that credit card on a regular basis on time, which of course is always a good thing. And that you will have a great credit score for it, that's true. You will get a great credit score for just having one credit card, using it occasionally, paying it on time. However you will not be able to get a mortgage, the reason being is if you have one credit card. That's only one credit line and if it's only worth, says $500, $1000 that's not really that impressive to a bank.
So what you need is multiple lines whether that be a student loan, a car loan, line of credit, other credit cards and you need to have decent amounts of available credits. So a couple of thousand dollars, $2000, $3000 and you need to use them regularly and make payments on them regularly.
What's that's going to do is tell the bank that you can in fact manage payments, you can manage debt without getting into trouble, and that there's debt. So you have multiple lines and that it's been going on for a while and that you have a consistent payment history.
That is a myth and I wanted to bust that because a lot of people are getting in trouble. Especially students who have been told by their parents to get just one credit card and pay it down. Well you know what, these students they don't have a long credit history.
What they need is at least a dynamic credit history, where they have got multiple lines going on, with a decent amount of available credit to them, meaning more than $500 or $1000.
If you have any questions about credit or your exact situation, give me a call Leah Coss with the mortgage center and I'm going to keep pulling out these different myth busters. Because there is a lot of a credit myths out there that are absolutely wrong, getting a lot of you into trouble when trying to refinance or get a mortgage in the first place.
Leah Coss with the mortgage center, hopefully I will be talking to you soon.

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