When a married couple applies for a mortgage, which strategy should they use if one has a low FICO score and the other has a high score?

Applying for a mortgage in the name of the spouse with the highest FICO score is an effective strategy when one partner has a low score. This approach leverages the more favorable creditworthiness of the spouse with the higher score, which can lead to better loan terms, including lower interest rates and potentially more favorable loan amounts. Lenders often assess the highest credit score of the applicants when determining eligibility and pricing for the mortgage, so a single strong score can boost the overall application.

By opting for this strategy, the couple can take advantage of the higher score to secure a mortgage that might otherwise be unavailable or more costly if the application were based on both scores or solely on the lower score. This decision can also demonstrate to the lender that one partner possesses the financial responsibility reflected in their higher credit score, which can positively influence lending decisions.

This strategy balances the potential risk associated with the lower score while maximizing the opportunities offered by the higher score. It’s important to note that the couple should also consider the long-term implications of this decision on their finances and credit profiles, as it may affect future borrowing and the credit building for both partners.