Credit Card Payments

brownjl

Hello,

What does it actually mean when they as what are your credit card commitments each month?

My partner an I have maintained seperate bank accounts, (to keep the advantages of graduate accounts which can not be offered to joint account holders).

So to make our finances easier to manage we made the decision two years ago to obtain a credit card, and additional credit card and ever since then we have purchased everything on our credit cards (food/ cloths/ presents/ evening out) but we automatically pay off via direct debit the entire balance each month, so we have never carried a balance forward.

But naturally this balance can vary and be faily high from time to time (one off purchases/ car insurance/ contents insurance) So what shoud we put down on mortgage applications? and will this hamper our application even though it just mostly living costs? should we return to purly using debit cards?

Cheers in advance,

James

MortgageGenie

Hi,

Your "credit card commitments each month" is for people that don't clear their cards at the end of each month and generally only make the minimum payment. In your case you should add a note in the additional comments, stating that your cards are cleared in full each month.