I am here because like many I want to make sure that my credit score does not hurt my chances on a great rate on my first home. I plan on buying a home in May of 2012 with my current fiance (by then wife) and we need to maximize our scores between now and then.
Right now I am sitting at a 696, I have been as high as 750+. My most detrimental areas are a high balance to limit ratio, a 30 day late in July 2010 (auto-pay did not work on a credit card), and a collections account that is listed as "KD" but closed from 2005.
Accounts:
I have a Card with a $5500 limit, currently sitting at around $5200. This has the 30day and was opened in 2004
I have a Banana Republic Card (revolving charge) with my Fiance that has a $500 Limit, sitting at $300.
I have a $1000 line of credit at my bank.
$4400 left on a student loan.
$3000 left on a line of credit I used to buy an engagement ring.
I should be able to paydown everything but the student loan by this time next year, leaving just the student loan with a balance.
My first question, I am interested in the impact of opening a second card with a no-interest on balance transfers so I can save on interest while paying down the $5200. What are your thoughts here?
Also, on the collections account when should I expect that to fall off, the only date I see listed is 11/2005.
My Fiance is sitting at a 701 and has no negatives on hers at all. She also has a high balance to limit ratio like me but her limits are much lower.
2 cards with $2000 each limits, using $3700 or the $4000.
Banana Republic Card (revolving charge) with my Fiance that has a $500 Limit, sitting at $300.
Auto loan with $4400 remaining.
What are your suggestions to improve her score?
Thanks, looking forward to working on this!
