You stand a much better chance of being approved for a home loan if you stick to just one credit card with a reasonable limit. It also means that you’re less likely to be approved for a home loan if you have more credit cards than you can afford. We suggest following these steps to buying a house so that the entire can go as smoothly as possible.

As long as you’re carrying a balance on one card, you can be approved for a home loan even if the other cards in your portfolio have a credit limit that’s lower than the limit on that one card. If you add all your credit cards into a portfolio, you’re much more likely to be approved for a home loan, and your credit utilization ratio will be lower. That’s because the cards you’re considering all have similar credit profiles, but they all have their own credit limits, and you have to pay those bills. This also applies to the minimum balance requirements on all of the cards you’re considering.

That said, it’s not as simple as it sounds to understand how many cards you should have in your portfolio. As I’ve said before, each person is going to be different. The more cards you have, the more you will want to consider. I highly recommend going over your cards several times before you start, just to make sure you’re getting the best investment out of each card.

A note about investing on credit

I’m sure that a lot of readers are going to think that all investing on credit should be avoided because of the high interest rate. However, there are some good reasons to invest on credit. Here are a few:

The minimum balance requirement on a credit card is usually 3% for the first year, which is very low.

It’s easy to earn credit. If you sign up for a credit card that earns you 1% cash back, you can pay it off every month without paying any monthly interest.

In addition to earning rewards, you can also transfer points to rewards cards, or buy a $5 gift card. This is great if you want to do both.

Some credit cards are just better than others. A lot of cards just don’t work as well, but the ones that do are worth a look.