Recently I went to my bank to inquire about a home loan. After running my credit report, they said only 1 number registered. My score is 775. I have 2 car loans that have been payed off and a credit card that I have had over 10 years that I pay off every month.
Why would only 1 number register? The agent suggested that I open 2 more credit cards, but I'm not sure if that is the best thing for me to do. He also said that it would take at least 60 days for the new accounts to register. What should I do?
========== ANSWER ==========
I have seen this happen before. You have a great score and obviously watch your credit carefully.
Unfortunately, the credit reporting agencies need to see at least 3 trade lines of credit to report anything. These can be either revolving, installment or a mortgage. Otherwise they cannot calculate a score if there isn't enough credit information to figure that score.
Since you have most everything paid for, two of the credit reporting agencies do not have anything to report. That is why your agent suggested you open (and of course use) two more credit cards so this activity can be reported. Your agent is correct in saying that it will take 60 days for the reporting agencies to score this new activity.
However, if you use FHA loans, they will consider alternative forms of credit such as your utility bills, mobile phone bills, car insurance or rent payments. They will use these along with your one score to qualify you for a mortgage. Conventional mortgages require the 3 scores to qualify you for a mortgage.
Of course, I would recommend FHA but that is up to you.
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