credit cards and borrowing power?

[bronny-jane]

hey, we have $10,000 in credit cards, will this affect how much we can borrow?
we are thinking it might be best to pay off our cards and set a new limit of $2000...

[andie_pandie]

Hi Bronny-Jane

Yes definately, generally most banks service a credit card limit at between 2.5-5% of the limit, generally 3%. Which means that they will take $300 per month off your net income which is quite a bit.

If your credit card is down to $2000 limit then this will be approximately $60 per month taken off your income.

With a personal loan or car loan they will service these at the actual monthly repayment.

If you are able to reduce the credit card down this will definately help with your borrowing capacity. If you need any additional help you are welcome to PM me or ask away in this forum.

Regards


Andrea

[bronny-jane]

wow i didnt know that, thanks so much:wave:

[andie_pandie]

You are very welcome. If you need anything further just let me know, always here.

[bronny-jane]

You are very welcome. If you need anything further just let me know, always here.

lol i'll be bugging you so much in the coming weeks, you'll have to put me on your ignore list:laughing:

[andie_pandie]

LOL, don't know how to do that (don't tell).