As a matter of interest I was just playing with a loan calculator on-line (the Wizard home loan one)& discovered something that I was quite shocked about. When I put in the figures claiming a credit card limit of $1,000 & compared almost identical figures in a second calculation except claiming a $10,000 credit card limit the amount I was quaified to borrow was reduced by $55,000! How can that be? I was already aware that lenders seem to assume that you owe the full amount of your credit card limit even if you owe nothing at all on it when they calculate how much you can borrow but how can they justify multiplying it by 5 aswell? This could be useful information to anyone with a credit card who is just that little bit short of bringing their investment loan over the line – ditch the credit card!
S[biggrin]parky
I meant to post this in general not help needed -sorry!
Yes credit cards can seriously affect somebody’s borrowing capacity.
On another note, if you are thinking about going for finance the very knowledgable people on this forum know every trick in the book to get your application over the line and there are many capable brokers aswell.
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