That card will need to have at least a $2000 unsecured limit. Even then, it may depend on whether that card is a quality credit card or a second-rate card. Credit cards from the “Big five” banks are considered the most credible, but they are also the toughest to get and to achieve high limits. The cards more easily gotten are considered less credible but are often the ones you need to start with when you are trying to build up your credit from a low score.Then, they also prefer if you show several kinds of credit. While revolving credit is best, if your other credit lines show variety of credit types, such as “installment” or even ”retail” credit, then you demonstrate a broader level of responsibility, which, of course, they like to see.
Your credit cannot be brand new, either. Generally, lenders will want you to have had at least two credit lines for at least two years, though there may be some flexibility if your best credit line is high and of longer term.
Also, if you have some negative influences on your credit, such as a delinquency in payments, collections, consumer proposal or bankruptcy, then lenders will require a certain passage of time before approving you for a mortgage, even if your score is otherwise adequate. A late payment may be required to have aged a year, whereas a bankruptcy discharge or consumer proposal payout may be required to have aged several years. If real estate was included in a bankruptcy, you may be required to wait seven years. And if you’ve had a second bankruptcy, forget about a mortgage for 14 years.
Being credit worthy for a mortgage is far from an exact science. Learning how the banks think, however, can help you to take the steps necessary to reach the score needed to get you approved for a mortgage.
You should check your score and report from time-to-time, to ensure that you are doing the things necessary to build or maintain your credit worthiness, and to correct any errors that occasionally find your report.