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  1. #1
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    Default Credit card limit and applying for home loan

    When the banks ask your credit card limits, do they really check to see how many cards you have and your limit.
    I have around 4 cards between Dh and I (all 0 balance, except one which is around $900) and I was thinking to cancel them just so it will help us to borrow the amount we want.
    The total limits on the others cards is around $13,000 all up which means that we wouldn't be able to borrow much if the banks knew

    SO do they check??

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    Default Credit card limit and applying for home loan

    Yep. They check.

    Doesn't matter if they have $0 owing on them either. They calculate how much the repayments would be if you were to max them all out and then deduct that from your budget 'just in case'

    If they have $0 balance I would definitely be canceling them.

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    Default Credit card limit and applying for home loan

    Hugs bunny is right, they check but it's also as if you have $13,000 owing because you *could* still spend that money. If they have $0 balance I would definitely be closing them and keeping just one

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    Mmmm I figured!!
    Ok, I will close them all tomorrow and only keep the one that I owe $900 (it has a $2000 limit so thats ok)
    Thanks!

    PS: If I close them tomorrow, it should be instant right? (Broker is coming Wednesday)

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    If you don't put them on the application, there is no way of them knowing you have them. Otherwise they'll want all your statements aswell and it's all calculated. It wouldn't affect your borrowing power too much, 13k credut card limit is pretty common. I would personally put them on one card with the bank you want to borrow with, westpac did this for me when I did my new home loan.

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    Default Credit card limit and applying for home loan

    Yep that should be fine. Be prepared for your creditors to try and talk you in to keeping the cards because 'there's no charge to keep them'. They'll be tenacious. Just say no lol.

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    Quote Originally Posted by singa06 View Post
    Mmmm I figured!!
    Ok, I will close them all tomorrow and only keep the one that I owe $900 (it has a $2000 limit so thats ok)
    Thanks!

    PS: If I close them tomorrow, it should be instant right? (Broker is coming Wednesday)
    Why don't you speak to your broker first and see what he/she says?

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    Default Credit card limit and applying for home loan

    They never checked mine.

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    Default Credit card limit and applying for home loan

    Our broker advised us to pay ours off and cancel them before putting in our application. Which we did. It's nice knowing we don't have that bad debt hanging over us anymore.

    We also don't need to freak out if we need cash urgently as we have a pre approved card with our bank and all we have to so is call to have is instantly activated in case of an emergency.

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    Default Re: Credit card limit and applying for home loan

    I don't know if it has changed since we applied for our home loan, but I was told if the max limit on your cards was $1000 then they weren't counted. So we just lowered ours to that and all was good.

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