All Topics / Finance / Credit Card Helping Home Loan Application?

Viewing 11 posts - 1 through 11 (of 11 total)
  • Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    Would having a credit card that has been well managed and always paid on time be good in terms of credit history in applying for a housing loan or would it be better to have no credit cards when applying for a home loan?

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714

    The existence of credit cards always detracts from serviceability.

    The limit on your credit card is assumed to be maxed out (even if it isn’t) and the 3% (I think that is the minimum payment for most c/c) is then factored into your expenses.

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    hi brizza

    the conduct on your card is important – the lower the limit the better as Woodsman said, servicing will be calculated at the credit limit not the outstanding balance or average monthly useage.

    the good news is that a number of lenders will ignore the credit limit if you provide 3 or more months of statements demonstrating the card is paid in full each month.

    cheers

    brahms
    CALL NOW…adults only (boys and girls ask mummy or daddy first) ~~ 1900 HOT BROKER ~~

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714
    the good news is that a number of lenders will ignore the credit limit if you provide 3 or more months of statements demonstrating the card is paid in full each month.

    Brahms, which lenders do this?

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    ING as a matter of policy, plus others on case by case basis.

    cheers

    brahms
    CALL NOW…adults only (boys and girls ask mummy or daddy first) ~~ 1900 HOT BROKER ~~

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    The lower the limit the better. No credit card is best as far as a loan app goes.

    Loans are processed by numbers now. In the old days a good credit card behaviour might sway the local manager assessing your ap but now it is done in a factory and numbers are all that matters.

    Cheers,

    Simon Macks
    Finance Broker
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of LizzyLizzy
    Member
    @lizzy
    Join Date: 2004
    Post Count: 230

    Yes, this notion of paying off your credit card as a sign of good credit is a few generations old.

    If you are good with credit then you won’t have a credit card is how they look at it now.

    Brahms – I’ll be checking this with the ING!

    Liz

    Mortgage Lender

    Profile photo of brahmsbrahms
    Participant
    @brahms
    Join Date: 2004
    Post Count: 485

    Liz, i’ll give you the short cut – go to Short Form Credit Policy, scroll to page 4, second box up from bottom, ING introducer website.

    cheers

    brahms
    CALL NOW…adults only (boys and girls ask mummy or daddy first) ~~ 1900 HOT BROKER ~~

    Profile photo of LizzyLizzy
    Member
    @lizzy
    Join Date: 2004
    Post Count: 230

    Thank you!

    This little snippet comes just at the right time!

    Thanks Brahms [cheesy]

    Liz

    Mortgage Lender
    1300 780 826

    Profile photo of wealthseekerwealthseeker
    Member
    @wealthseeker
    Join Date: 2004
    Post Count: 28

    How about store cards???
    Same??

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714

    Yes – re them reducing your serviceability

Viewing 11 posts - 1 through 11 (of 11 total)

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