You can apply for a mortgage if your credit card application fails. As long as you can meet the conditions for a mortgage, there is no problem in applying for a mortgage. However, frequent applications for credit cards and always failed applications will have a certain impact on the applicant's credit report. When applying for a mortgage loan, the bank will check the credit report and see that the applicant has many credit card approval records, and will think that the applicant's financial conditions are not good enough. Well, the demand for external funds is large and the repayment ability is insufficient, which will affect the approval of housing loans.

It is not recommended to apply for more than 3 credit cards in a month. When using them, you must repay them on time and do not overdue. When applying for a mortgage, try not to occupy too much of the credit card limit to avoid excessive debt ratio.

What impact will credit cards have on housing loans?

1. Overdue credit card payments affect credit reporting

Nowadays, personal credit reports are becoming more and more important, regardless of Whether you are buying a house or a car, as long as you are dealing with a bank or loan business, you must check your personal credit report.

Let’s first take a look at the personal credit report requirements for applying for a provident fund loan. Once these circumstances occur, the bank will have reasons to reject you.

(1) The borrower or his/her spouse has an overdue loan that has not yet been repaid;

(2) The borrower has an overdue credit card or credit card overdraft that has not been repaid. (That is, the bank card or credit card is overdue);

(3) The borrower’s credit card or bank loan is overdue for more than 3 months, or the applicant’s loan (excluding student loans) in the past 2 years has been overdue for more than 3 consecutive months 6 issues. _

Specifically when it comes to credit card overdue, Jinbao believes that it depends on the severity of the overdue:

(1) Short-term non-malicious overdue has little impact: if overdue is more than 1 day, it is less than 30 days, the credit report will show 1, indicating that it is overdue within one month. If such overdue payments occur once in a while, they will have little impact on normal loans.

(2) Overdue payment of more than 3 months has a greater impact: Generally, if it is overdue for more than three months, it is more serious. It is usually due to too much overdraft or you do not want to pay it back. If there is an overdue payment of more than 3 months within 2 years, it will be more serious. If it is overdue, the housing mortgage loan will not be approved.

(3) Direct rejection if there are too many overdues: If the applicant is overdue more than 6 times within a year and more than 12 times within 2 years, then you can save effort, and housing loans are basically passed. But no!

2. High credit card limits affect mortgage approval

(1) High credit card limits occupy the loan limit

Mr. Li has 10 credit cards in his hand. The total overdraft limit exceeded 350,000, which he was once proud of, but when he recently needed a mortgage to buy a house, he was no longer happy.

In fact, the credit card limit is actually equivalent to the loan limit pre-approved by the bank. Using this limit is actually using the loan limit, but there is an interest-free period of about 50 days. Using this amount is equivalent to borrowing from a bank, which will affect the purchase of a house with a mortgage, especially a provident fund mortgage loan.

(2) Credit card affects debt ratio

Similarly, if the credit card limit is too high, it means that the risk of the applicant's debt ratio (income-debt-service ratio) being too high increases. Debt ratio = total liabilities/total assets. This debt ratio represents your short-term solvency.

Generally speaking, the income-to-debt service ratio acceptable to banks is 0.5, that is, the total monthly income should be twice the total monthly debt service expenditure.

(3) It is better to have fewer credit cards than too many.

In life, many people like to hold multiple credit cards, but if there are too many credit cards, it will inevitably occupy the cardholder’s credit limit. Furthermore, Too many credit cards are inconvenient to manage and can easily lead to overdue credit cards. In order to avoid losing more than you gain, it is recommended that you apply for 2-3 credit cards. If you really have large purchases, you can apply for 1-2 large credit cards.