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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: aussiegal on March 24, 2015, 02:26:34 AM

Title: Credit card application impact on loan approval
Post by: aussiegal on March 24, 2015, 02:26:34 AM

Hi guys,

Random question? Aussie looking to get a home loan soon (quite a bit below max borrowing capacity), no debt and have a pretty rubbish credit cards rewards program. I am considering applying for the AnZ rewards while they have their promo on. Have a preapproval completed, and wondering if applying for another card is going to cause me problems. The limit on my other card is 9k, but has nothing owed on it, and I would be looking to get the minimum limit (1k or 6k depending on which card I choose)!

Thoughts?

Title: Re: Credit card application impact on loan approval
Post by: Retired To Win on March 24, 2015, 02:12:47 PM

I believe any "hit" to your credit score would be strictly temporary.  The extra credit card would lower your "credit utilization ratio" which would actually be a positive.  And home loan providers use ratios and calculations that would not cause a second credit card to become a deal breaker.

Good luck.