I have an excellent credit score. However I only possess one major credit card and two department cards. ?

Question

I am planning to purchase a home in a year or so. Would it be in my best interest to get rid of my department cards and apply to a couple more major cards? I believe my score to be in the 750s, and would like an added 25 points or so by the time i take on a mortgage.

Answer 1

No, don't cancel cards you have a history with to take on new accounts.  It won't help and could actually lower your score since you lose the older account history.

Just be sure to pay everything on time.  Don't carry any balances on the credit cards.  Use them and pay them in full each month.

It would be a good idea to get a copy of our credit report (AnnualCreditReport.com) and see what shows.  If anything needs to be disputed or settled, do it now so you don't get any surprises when you're trying to get approved.

Answer 2

Find a bank that gives loans the old fashion way. Without the fico score. It's called manual underwriting.  

Answer 3

No!

1. Getting rid of your oldest card hurts your score, because it reduces the "age" of your credit history (which is measured from when your oldest remaining account was opened).

2. Applying for new cards also hurts your score, whether or not you are approved.

Answer 4

If you're worried about your credit report you can check it for free on this site..

Answer 5

750 won't get you any better deal than 775.  Leave your credit alone.  don't make any sudden moves.

Answer 6

I would like to add to the other answers. Yes your credit score is based on your oldest active accounts so you don't want to close those accounts. I do want to play devils advocate here though. Banks and lenders don't just look at your score I have seen people with credit scores as high and higher then yours mentioned be turned down for loans due to the simple fact that they don't have any "high credit". By this I mean if your highest piece of credit is a $5,000 dollar credit card don't expect the bank to just turn around and give you a $100k dollar loan because your score is good. because you don't have any comparable high credit. Now if you have had some car loans which are "installment loans" instead of "revolving credit loans" your chances are better. Revolving credit history such as credit cards with a 750 score is not near as appealing to a bank as someone with a long history of installment loans and a score of 650. Something to keep in mind, of course if your credit cards have $50k dollar credit limits that may be a different story. I don't know of any lenders that offer any extra perks ie lower rates or better terms to anyone over 750 so anything over is really not beneficial (not that its bad)