What should I do if my mortgage loan is rejected and I pay off my credit card? You can try this!
Many people think that only overdue credit cards will affect getting a mortgage, but they don’t know that high credit card debt can also make it impossible to get a mortgage. Some cardholders came to consult, saying that their mortgage loan applications were rejected, and the bank asked them to pay off their credit cards and come back again. They wanted to know what was going on. In fact, this can be analyzed into two situations.
The first situation is that the credit card is overdue
Yes, as mentioned earlier, overdue credit cards will affect your credit report. When applying for a mortgage, the bank will first Go to the central bank's credit reporting system to learn about the applicant's credit status. Only if the credit score is passed will the next step of investigation be carried out. Otherwise, the bad credit record will have to be eliminated.
If the bad credit record applied for is caused by an overdue credit card, and paying off the debt is the only way to eliminate the bad credit record, then the bank will naturally ask the applicant to pay off the credit card. Whether you can apply for a mortgage loan is subject to the bank's approval.
The second situation is that the credit card debt is too high
We know that banks are strict in approving mortgage loans. In addition to checking the applicant’s credit report, they also need to check the applicant’s repayment ability and debt ratio. It is also a key factor to examine. If the cardholder's credit card debt ratio is too high, it will give the bank the impression that the applicant is strapped for funds and thus doubt the applicant's ability to repay.
For risk considerations, banks will ask applicants to pay off their card debts and wait until the debt ratio drops before applying. Therefore, it is best for everyone to swipe the card within their own ability, and after swiping the card for consumption, it is best to repay in full if you are able.
The above is the relevant introduction to "What to do if your mortgage loan is refused to pay off your credit card". I hope it will be helpful to everyone. All in all, credit card debt ratio, overdue payment, etc. will directly affect the approval of mortgage loans. If you want to avoid being rejected for a mortgage loan, it is best to pay off your credit card debt in advance.
What should I do if my mortgage loan is not approved due to high debt? These are several ways to remedy the situation
Nowadays, many people will take out loans to buy houses, but banks will not only check the credit but also the debt status of the borrower when approving a loan. Many people have been denied loans by banks because their debts are too high. So are there any remedies for this situation? Here are some suggestions for you.
For banks, too high a borrower's debt will affect their ability to repay, and approving loans to them will lead to the risk of default. For this reason, banks will be more cautious when approving loans. If your debt is too high and you don’t want to be rejected when applying for a mortgage, you can remedy the situation through the following methods:
1. Reduce the debt ratio
You can find someone to borrow money for a loan with a high credit rating , Paying off credit card debts, or splitting large debts into smaller amounts is also a way to reduce debt.
2. Increase the down payment ratio
If the down payment ratio is increased, the total loan amount will be reduced, so the repayment pressure will not be so great, and the repayment ability will also be improved. Apply for a loan again The success rate will be higher.
3. Extend the repayment period
The longest bank loan period is 30 years. It is best to choose the loan period based on the repayment ability. If you originally planned to loan for 20 years, However, if the mortgage loan cannot be approved due to high debt, you can borrow for 30 years. If the term is extended, the monthly payment will be lower.
4. Add ***co-lenders
If you cannot approve the loan on your own, you can add someone else with good credit as ***co-lender, which can be your parents. It can also be a spouse, which is usually required to have a stable income, and some also have age restrictions, etc.
5. Provide guarantees
There are many guarantee companies that can provide guarantees for everyone, but they will charge a certain fee. If the mortgage loan is approved and the borrower is overdue, the guarantee company will provide guarantees for the loan. The person advances the overdue debt and then collects the debt from the lender.
The above are several remedies for high debt and mortgage loan disapproval. I hope it will be helpful to everyone.
What should I do if my credit card is overdue and my mortgage cannot be approved? Learn these remedies
Currently, various places have implemented purchase restriction policies, and the threshold for getting a loan to buy a house has been raised a lot. It is difficult for many credit card holders to obtain the qualifications to buy a house. As a result, the mortgage loan cannot be approved because the credit card is overdue. This situation I feel aggrieved, but I don’t want my qualifications to buy a house to go to waste. So, what to do in this situation? Now I will teach you how to get a loan to buy a house if your credit card is overdue.
First of all, you need to find out whether it is a malicious overdue payment.
A malicious overdue payment means that the credit card is overdrawn for the purpose of illegal possession and the credit card is not repaid. If the overdue degree is serious, the bank will naturally refuse to approve the loan. , because they have to bear a large default risk.
Of course, if it is not malicious, you may not be able to get a loan. After all, overdue credit will result in bad credit. But what is certain is that before applying for a mortgage, you must pay off the overdue credit, and then repay the loan. Go apply. The bank will then decide whether to grant you a loan.
Secondly, you need to understand the bank's tolerance for overdue loans
We all know that an overdue credit card does not mean that the mortgage application will be rejected. The details still depend on the bank's tolerance for overdue loans. The tolerance level mainly depends on the number of overdue payments in the past two years and the seriousness of the circumstances.
1. If you are overdue once or twice and repay the loan on time after the overdue period, it will be easier to be approved. It is a loan, but the loan interest rate may rise according to the number of overdues. Some banks will increase it by 3% for one overdue period; 5% for three overdue periods; and 10% for six or more overdue periods.
2. If you have few overdue payments but fail to repay for 3 consecutive months, the bank may have zero tolerance for you and the possibility of being denied a loan is very high.
3. If there are more than six overdue repayments in total, and if you cannot provide relevant supporting materials to prove that you are not overdue maliciously, then your application will most likely be rejected. Of course, after providing supporting materials, the bank will consider it as appropriate. If you are lucky, you may approve the loan, but the interest rate on the same loan will also rise.
My tips: How to deal with overdue credit card mortgage loans that cannot be approved
Method 1: When choosing a bank, try to negotiate with the developer and choose a foreign bank, a joint-stock bank or a local bank Sexual banks, avoid large and medium-sized state-owned banks
Method 2: Provide the bank with proof of your repayment ability as much as possible, such as providing proof of assets in your name, or providing a guarantee.
Method 3: If you have an overdue credit card, it is recommended to accept the bank's terms of increasing interest rates or increasing down payment
Finally, I hope you will cherish your credit record.
My reminder: Consumer loans cannot be used to purchase a house. If the purpose is to purchase a house, you can apply for a housing loan from a banking institution.
What to do if the mortgage loan is not approved due to high debt? These reasons lead to the failure of the mortgage approval
Although there are many people with better conditions, there may also be problems when applying for a mortgage. Unsuccessful phenomenon, after all, mortgage loans are not as easy as we imagined. We will definitely encounter problems of one kind or another during the process of applying for a mortgage loan. Once rejected, it will be very troublesome. There are many friends in the market who are unable to get their mortgage approved because their debts are too high. Next, let’s take a closer look at what to do if our debts are too high and our mortgages are not approved. What are the reasons why house prices cannot be approved?
What to do if your mortgage loan is not approved if you have high debts
1. Reduce the debt ratio
You can find someone to borrow money to pay off the loans and credit card debts that are listed on the credit report. , or splitting large debts into smaller amounts is also a way to reduce debt.
2. Increase the down payment ratio
If the down payment ratio is increased, the total loan amount will be reduced, so the repayment pressure will not be so great, and the repayment ability will also be improved. Apply for a loan again The success rate will be higher.
3. Extend the repayment period
The current maximum loan period of the bank is 30 years. It is best to choose the loan period based on the repayment ability. If you originally planned to loan for 20 years , but if the mortgage loan cannot be approved due to high debt, you can borrow for 30 years. If the term is extended, the monthly payment will be lower.
4. Add ***co-lenders
If you cannot approve the loan on your own, you can add someone else with good credit as ***co-lender, which can be your parents. It can also be a spouse, which is usually required to have a stable income, and some also have age restrictions, etc.
5. Provide guarantees
There are many guarantee companies that can provide guarantees for everyone, but they will charge a certain fee. If the mortgage loan is approved and the borrower is overdue, the guarantee company will provide guarantees for the loan. The person advances the overdue debt and then collects the debt from the lender.
These reasons lead to failure to approve the mortgage loan
1. Personal credit record
When applying for a home loan, the bank will first check the borrower's personal credit report. If the report If it shows that there have been three consecutive or six cumulative overdue repayments in the past two years, the borrower's mortgage application will most likely be rejected. Therefore, everyone must maintain their personal credit in daily life. In addition to overdue records, if there are records due to bad credit, such as long-term arrears in water, electricity, phone bills, etc., bad records will be included in the personal credit record.
2. Repayment ability
In addition to personal credit records, banks will also focus on reviewing the borrower's repayment ability. If the debt is too large, or the income or job is unstable, etc. Will affect the success of home loan approval.
3. Personal loan default
If the principal and interest of the loan have not been repaid when you apply for the loan or the guarantor is repaying it on your behalf, and the principal and interest of a single loan have been outstanding for more than 6 consecutive periods within a month. Records (including repayments by the guarantor), a single loan has a cumulative overdue record of more than 24 periods, and there are records of loan extension (extension) or debt repayment with capital in the past two years, etc.
4. Insufficient down payment
According to bank requirements, customers applying for home loans need to have a certain proportion of down payment. Generally, the down payment ratio for first home loans is not less than 30%, and for second home loans, the down payment ratio is not less than 30%. The down payment ratio is no less than 60% (some cities require no less than 70%). Therefore, customers who want to apply for a bank mortgage must be prepared before taking the loan to prevent the loan application from being rejected.
Through the above introduction, we can understand the reasons why the housing loan cannot be approved. It may be due to bank reasons or real estate reasons. In addition, most of them are due to our own Reasons, such as insufficient down payment, personal loan defaults, insufficient repayment ability, etc. will all lead to abnormal loans. I hope everyone can understand after seeing this.
How to solve the problem of being unable to get an overdue mortgage loan on a credit card
If you are unable to get an overdue mortgage loan on a credit card, there are two situations to solve it. The first is that the credit card is overdue, so you should pay off the credit card as soon as possible, explain the reason for the overdue payment to the card-issuing bank, and issue a non-malicious overdue certificate. In this way, the mortgage application can be resubmitted, and the non-malicious overdue certificate can also be included in the mortgage approval materials. The second type is that the credit card has an overdue record, but it has been settled. This situation affects the approval of the mortgage, and the only choice is to change the bank to apply for the mortgage.
Different banks have different credit reporting requirements. Some banks only require good credit reporting within the past six months, while some banks require good credit reporting within the past 2 years. When applying for a mortgage, you can choose a bank with more relaxed application conditions.
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For more information about what to do if the credit card is overdue and the mortgage loan cannot be approved and the bank mortgage is approved because of the credit card arrears. This is the end of the introductory introduction. I wonder if you found the information you need?