Mortgage application & credit card spending...
WitneySi
Posts: 4 Newbie
in Credit cards
Hello!
For the past few months I have got into the habit of spending on my credit card and paying it off in full at the end of the month. This has been the habit since learning that spending and repaying your credit card in full helps to increase your credit rating/limit - which to a degree it has.
At the same time, my wife and I are looking to apply for a mortgage in December, and I'm wondering if spending this way will be looked at negatively by mortgage 'companies', or, will they see it as constantly living in debt?
Shall I continue or do I stop with immediate effect?
Simon
For the past few months I have got into the habit of spending on my credit card and paying it off in full at the end of the month. This has been the habit since learning that spending and repaying your credit card in full helps to increase your credit rating/limit - which to a degree it has.
At the same time, my wife and I are looking to apply for a mortgage in December, and I'm wondering if spending this way will be looked at negatively by mortgage 'companies', or, will they see it as constantly living in debt?
Shall I continue or do I stop with immediate effect?
Simon
0
Comments
-
Using a card and clearing in full demonstrates reliable financial behaviour.
That is something all mainstream lenders see as a positive, regardless of any credit score you may see.0 -
Thank you for your response zx81!0
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I would recommend for mortgage applications try and keep your spending as low as possible all round, however as ZX states if you pay in full its a positive outlook to your credit file.0
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