Score 766- Let it be?

[Anonymous]

My husband and I will begin our search for a home in July of 2013. Today I purchased the $4.95/m FICO report for my H. He has a score of 766, which they've listed as "excellent." There is one item that is listed as hurting his score, and that is " high account balances" We only have one credit card and at the time it reported we had a balance of $632 with a limit of $4200. It is paid off in full monthly, but obviously we need to work on paying it down to the recommended <9% after each purchase.

Before I looked up his score we were discussing opening another credit card (or requesting a balance increase on the current card) to make sure his score was in tip-top shape. Now I'm concerned that doing so may cause more harm than good, or be worthless all together. Am I overlooking a reason to obtain more credit?

In addition, would it be beneficial to have his name only on a mortgage loan? I have not checked my score, but only have one line of credit (the visa I share with my H) that is 9 years old. I imagine his FICO score is much higher than mine and I'n a SAHM, so I bring no income to the table. Thank you for your time!

[Anonymous]

This might have more luck in the mortgage forum, but the 766 itself should put you in the top tiers. And, you really only need to pay your balance down right before the statement date, not the due date or after each purchase.  If you're looking in July, definitely do not apply for new credit now. It will complicate underwriting.

Also, as for applying alone vs. jointly, depends on the state I think.

EDIT: If that 766 is only one of the three scores, consider that lenders usually pull all three scores and use the middle one.

[bettercreditguy1]

+1 to the you should qualify for the best mortage interest rates. Although you are a sahm, you should be on the mortage to build your credit portfolio should you ever desire a credit card, etc.

[marty56]

I would not apply for any new credit and you need to pay the balance before the statement drop date in order to control your reported util.  Remember DTI is also a factor in getting a mortgage.

[Anonymous]

I to would not apply for any new credit cards nor would I apply for a CLI at this time I woud just sit tight and pay your payments in full before the statement date cuts as said above.  Now if your trying to get a house 6 months from now then sure go ahead and request a CLI on your current card.  Other wise just stand fast and get that house first!

[jamie123]

I think you might have misread the OP. She is looking for a house in July of 2013.

I would definitely call for a CLI increase now. It will give you more than a year to recover from a hard pull.

As far as applying for a new card, that depends on how many other trade lines are on his report. You might want to get 2 cards anyway, they won't be considered new after a year.

If he doesn't have any installment loans I would definitely apply for 2 more CC now. You don't want to get stuck with the "thin file" problem.

You also want to pull your file and make sure it is clean. You really don't have a choice as to being on the mortgage or not. There might not be any laws against it, but most lenders won't allow just one spouse of a married couple to take out a mortgage loan, and they will be looking at your credit file.