Mortgage credit repair question

[Darwin]

Does opening or closing a credit card 6-8 months prior to applying for a mortgage in order to improve my score a good idea?

I plan to apply for a mortgage in the next 6-8 months. However, I was debating on opening a new credit card now with 0% APR to help consolidate my current credit card debts. This should allow me to lower my credit utilization and improve my score so I can get better terms on the mortgage.

I also want to close down a card or two, so I don’t have so many credit cards under my name (although all are in good standing, but with a balance).

Thoughts?

[Elliot]

It’s a bad mortgage credit repair idea

I would strongly advise against it. It’s usually a bad idea to make ANY changes to your credit habit a few months prior to applying for a mortgage.

To start with, applying for a new credit card may harm your credit. Even a few point here and there can make a difference when lenders consider your application for a mortgage.

Closing credit cards is especially bad idea because you lower your available credit, so your balance to credit ratio goes up. Further more, you make your credit history younger, and that actually lowers your credit.

Ask any mortgage officer or advices and you’re bound to get the same answer.

See keeping-a-good-credit-score.html for some credit score Do’s and Don’t.

[Author]

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