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[C.Ann]

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[bumbershoot]

My MIL was able to continue to use the joint CCs when FIL passed away.

That said, I don't think it's a good idea to close accounts right before doing anything home loan related. That does something funky to the amount of credit/used credit ratio.

 

[sameyeyam]

It is not a good idea to close out credit cards right before getting a home loan. Doing so will lower the credit score. If possible encourage them to go to www.clarkhoward.com and learn more how and when to cancel credit cards so it doesn't hurt your credit score. He has an excellent radio show that is on AM radio around the country and also has a show on Sunday's on HLN news channel.

In order to keep the credit score high, they should use all of their credit cards about once every six months. Just to charge a coffee or something small on them and pay it off on time. That will keep the banks from closing them out (which also lowers the score). Right now with them financing a home, they want to have the highest possible score, so they get the lowest possible interest rate.

If they really want to cancel the cards, they should do it slowly one at a time AFTER they have gotten their home financed.

 

[C.Ann]

Thanks!

 

[Tiffer]

Credit score is definately important but it also depends on their income to debt ratio. That is equally important.

Although closing the card may lower her score, it could potentially increase her income to debt.