Should I open a new CC account 6 months before buying a home?

[homewardbound]

I am planning to purchase a home this August.  I have a Ch 7 BK on record that will have been discharged for 2 years this June.  So I would like to apply for an FHA Home Loan since I need a 620 FICO score.  I believe my middle score is around 620 right now, but I want to ensure that I will easily qualify.  I have two credit cards, WAMU and Cap One.  The balance on the Cap One is slightly over 50% util because instead of paying it off, I have saved the $$ for the down payment on the home.

Should I open another credit card and transfer a portion of that balance over to the card to lower my utilization?  I can't pay it down because I won't have enough money for my down payment.

I want to boost my score am much as possible and wonder if it's better to open a third card or will it hurt my score?  Thank you!

[haulingthescoreup]

You're awfully close to the don't-app-for-credit-within-6-months-of-a-mortgage window.

It's really impossible to tell for sure what the net effect would be of opening a third card.

It's great that you're saving for the down payment, but plan to pay the balances off on one card and to under 9% on the other 8-10 weeks before mortgage app time. (That should give them time to update properly.)

I don't think that your scores are quite high enough right now, especially with the high util, to expect to get a card with a decent CL to help out your util. And don't forget, BT's cost money via the balance transfer fee. This is in addition to whatever APR they have.

Depending on your timetable and your ability to save, I really think that you'd do better to divert some of your future savings to paying down/ off the cards.

[llecs]

IMO, don't do it.

[marty56]

I lost 15 points for an INQ a while back.  Took a year to get them back.  Dont apply.

[homewardbound]

Thank you all for the advice.  I am just scrambling trying to figure out how to come up with the down payment by August because if I buy by 8/15, my company will reimburse my closing costs and other associated fees, title, inspections, etc.  I was relocated and want to take advantage of those benefits, but coming up with the cash is tough, so I was trying to lower my util withough paying down the cards until after I purchased and then I could use the $8,000 first time home buyer tax credit to pay off the cards (only $3,000) and then save the rest for home repairs.  If anyone has any other advice for me, I'd appreciate it.