Credit Cards

It may be something that you had not considered when applying for a mortgage, but your credit card history could decide whether you get it or not.

You see, every time you make a credit card payment the information is stored as part of your credit history. So, when you apply for a mortgage, the lender will immediately look up your credit report, along with your salary and the personal details you have provided for them, to decide whether or not you are ‘a good risk’ or ‘a bad risk’. If it is the former you will be offered a mortgage. If it is the latter you will not. It goes without saying, then, that you need to retain a good credit rating.

Always pay off debts on time with at least the minimum repayment, although it is even better to pay off your credit card debts in full every month. If you are constantly late with your payments you may find it difficult to get a mortgage. Daft as it may sound, if you do not have a credit card and you have never taken out a loan, which means that you do not have a credit history, that could work against you getting a mortgage, because the lender will have nothing to suggest whether or not you are a good payer. So, if you are in a position where you need a mortgage it might not be a bad idea to build up a good credit history first.

However, resist the temptation to use lots of credit cards, because lenders might see that as suggesting potential repayment problems.