Posted on: 05th Mar, 2006 11:49 pm
I am willing to buy a property but we have credit cards. I mean my husband has 6 and I have 4. Our credit is good enough and we have been paying in time always and that too, slightly more than the due amount. But tell me, do we have to close some of the accounts or have zero balances, I mean if I can get in return a better rate on the mortgage. Pls give me some idea. Our highest credit limit is $800.
Hi,
Keeping in mind the rates charged by credit card companies, I would suggest that you keep zero balance on your credit cards. You can also get rid off some of the cards, and then pay off the rest.
I am not actually discouraging you, but all you need is to just manage them properly so that you don't get into trouble with a lot of debts. After all, you need to pay for your mortgage in time and for that you should also be having sufficient amount of savings.
Whatever mortgage rate you are offered will depend on your credit payment history. So you need to pay off the credit card debts in time and if possible get rid off some, if at all you wish to get a lower rate on your mortgage.
Thanks,
Caron.
Keeping in mind the rates charged by credit card companies, I would suggest that you keep zero balance on your credit cards. You can also get rid off some of the cards, and then pay off the rest.
I am not actually discouraging you, but all you need is to just manage them properly so that you don't get into trouble with a lot of debts. After all, you need to pay for your mortgage in time and for that you should also be having sufficient amount of savings.
Whatever mortgage rate you are offered will depend on your credit payment history. So you need to pay off the credit card debts in time and if possible get rid off some, if at all you wish to get a lower rate on your mortgage.
Thanks,
Caron.
Hi,
I don't think you should keep too many credit cards at a time, it's not going to have a good impact on your credit score. On the other hand, let me tell you. If you have at least some of them, and a mortgage and you make regular payments, it's going to help you in future.
Thanks.
I don't think you should keep too many credit cards at a time, it's not going to have a good impact on your credit score. On the other hand, let me tell you. If you have at least some of them, and a mortgage and you make regular payments, it's going to help you in future.
Thanks.
Why you need so many cards???
I think 2-3 is enough... Keeping too many cards will only create trouble for you as you have to remember their payment dates. I will suggest you to start surrendering it one by one.
I think 2-3 is enough... Keeping too many cards will only create trouble for you as you have to remember their payment dates. I will suggest you to start surrendering it one by one.
Absolutley wrong Zemina........Carolina welcom to the forum. Do not under any circumstances close your cards......you can pay them down to a zero balance but do not close them. Having debt when you are looking at buying a house is not bad. It will affect how much you MAY qualify for from an income perspective but until you sit down with a lender or broker and determine a few things......Here are the issues you need to determine.
How much a month max would you like to see your mortgage payment at......Notice I ask about the payment first. The reason being is that with ARMS money down or loan terms a broker or lender can back into the payment to determine max purchase price....Then you can examine your debt ratio to see if you qualify with the existing payments you allready have.
Closing the cards will hurt your credit score as you are ending a tradeline that you have paid on time.......just because you 15 credit cards does not mean you have to use them...........
How much a month max would you like to see your mortgage payment at......Notice I ask about the payment first. The reason being is that with ARMS money down or loan terms a broker or lender can back into the payment to determine max purchase price....Then you can examine your debt ratio to see if you qualify with the existing payments you allready have.
Closing the cards will hurt your credit score as you are ending a tradeline that you have paid on time.......just because you 15 credit cards does not mean you have to use them...........
Hi,
It is correct that if surrender your credit cards it will hurt your credit score. The best thing would be to clear off the debts early and keep the card on zero balance. It will help you to get good interest rate if you apply for a loan. In order to get good interest rate it is important to have a good credit score and good credit history and also a good source of income. Search for a good lender and if you qualify for the loan then go for it.
It is correct that if surrender your credit cards it will hurt your credit score. The best thing would be to clear off the debts early and keep the card on zero balance. It will help you to get good interest rate if you apply for a loan. In order to get good interest rate it is important to have a good credit score and good credit history and also a good source of income. Search for a good lender and if you qualify for the loan then go for it.
Not really--if you are managing them well, which you said you are. Credit cards affect your credit scores which will affect your mortgage rate, but if you are paying them on time and in full, just like you said, and have good credit scores, then there should not be any problem. The more important thing to do is to check your credit score before you apply for a mortgage. Good luck!