Home loan+ credit report

[benboo]

Hi there,

We have sold our home and purchased a block of land to construct a new home.

Prior to settlement, we were intending to buy a home (but prices went up) so this was the best option.

One house that we loved went to auction and as our buyers only paid a very low deposit. Our agent (idiot) suggested that we apply for a couple of credit cards and pull the 30K off that to fund the deposit and as it was a 30 day settlement pay it out then.

We missed out at auction and never touched the cards or the money. 6 in total. 2 were never even activatated.

We are both on good wages, no defaults very little consumer debt etc.....

Will the multiple (6) inquiries (in such a short time) my hubby now has have an adverse effect on our new application. We can explain why we wanted to access the credit and prove that no monies are owing and the accounts are closed.

Thanks

benboo

[andie_pandie]

Hi Benboo

This is a common trap, when people whom are wanting a sale no matter what will give you options that suit their needs not yours.

From a banking point of view if banks see a few transactions on the credit report they get a little iffy. Also when the banks test your affordability they will take 3% of the limit of these cards and lets say you have in your case $30K Limit then this means that the banks require $900 a month off your salary for you to support these cards which is a big chunk out of your income.

It is a good idea as you said to cancel the limits and close completely. Most banks with a good explanation should be able to accept the reason why you got the cards and with proof of closure there really should not be a problem.

You are welcome to PM me to discuss further, and then I could assess your situation further to see if there is any other possible reason why you are having problems.

Regards Andrea