Applying for credit card with mortgage overpayments that drain the salary

pieroabcd

Hi, Metrobank has decided to quit the Cc business, so I want to apply for a new credit card with HSBC (that I've been using for 6 years).

I have a mortgage with another bank that draws the money from HSBC (say X every month) and on top of that I'm doing monthly overpayments of 4X, so even considering the lodger's fee I drain all the salary every month.

The overpayment towards the mortgage is voluntary, of course, not mandatory.

Is the bank likely to refuse me the card because my savings have remained fixed for 1 year?

gt94sss2

No. 

They will probably ask you how much your regular outgoings are as part of your application.

Just put the account you are supposed to pay, ignoring the overpayments

pieroabcd

Ok. Thanks 

Time2Go_25

gt94sss2 said:

No. 

They will probably ask you how much your regular outgoings are as part of your application.

Just put the account you are supposed to pay, ignoring the overpayments

You mean lie on a financial application, that has the potential for ending badly

DullGreyGuy

pieroabcd said:

Hi, Metrobank has decided to quit the Cc business, so I want to apply for a new credit card with HSBC (that I've been using for 6 years).

I have a mortgage with another bank that draws the money from HSBC (say X every month) and on top of that I'm doing monthly overpayments of 4X, so even considering the lodger's fee I drain all the salary every month.

The overpayment towards the mortgage is voluntary, of course, not mandatory.

Is the bank likely to refuse me the card because my savings have remained fixed for 1 year?

The credit card issuer will have no idea what your savings are, only debts are reported to the CRAs. They will see that you are overpaying your mortgage but are likely to see that as a positive rather than negative thing - you've got spare money to be able to afford to pay 5x your mortgage... they won't know if 5x your mortgage is your absolute maximum or if you could afford to spend more than that. 

Just when you apply and they ask about other commitments that you state the actual required mortgage payment not the overpayment. 

born_again

pdel61 said:

gt94sss2 said:

No. 

They will probably ask you how much your regular outgoings are as part of your application.

Just put the account you are supposed to pay, ignoring the overpayments

You mean lie on a financial application, that has the potential for ending badly

Over payments are not regular outgoings. So it is not a lie.

paul_c123

pdel61 said:

gt94sss2 said:

No. 

They will probably ask you how much your regular outgoings are as part of your application.

Just put the account you are supposed to pay, ignoring the overpayments

You mean lie on a financial application, that has the potential for ending badly

The devil is in the detail, it would depend on exactly how the question is worded on the CC application. But I suspect a reasonable interpretation is to answer it with the regular amount, not the overpayment, since the underlying reason its asked is an affordability check.

After all, if you were to spend high on the credit card one month, you could cease the overpayments (that month) and thus be able to afford to pay off the CC.

pieroabcd

paul_c123 said:

pdel61 said:

gt94sss2 said:

No. 

They will probably ask you how much your regular outgoings are as part of your application.

Just put the account you are supposed to pay, ignoring the overpayments

You mean lie on a financial application, that has the potential for ending badly

The devil is in the detail, it would depend on exactly how the question is worded on the CC application. But I suspect a reasonable interpretation is to answer it with the regular amount, not the overpayment, since the underlying reason its asked is an affordability check.

After all, if you were to spend high on the credit card one month, you could cease the overpayments (that month) and thus be able to afford to pay off the CC.

In my case the requested data is
Yearly gross income
net monthly income
net monthly outgoings.

paul_c123

"net monthly outgoings" is quite vague - I'd do a rough back-of-the-envelope calculation and if its lower/equal to your net monthly income, no worries. If its greater, make a mental note to reduce the mortgage overpayments a bit in the future and declare your near-future intentions.