The credit card debt ratio shall not exceed 50%-60%. Once it exceeds this range, the bank will suspect that the user's repayment ability is insufficient, thus rejecting the user's mortgage application. For example, if the credit card limit is 1000 yuan, the monthly consumption expenditure is 5,000 yuan, and the monthly income of users is 30,000 yuan, then the debt ratio is 50%, and this debt ratio can be applied for mortgage.

Why does credit card debt affect mortgage application?

We all know that banks will go to the central bank's credit information system to check the applicant's credit information when approving loans. In addition to understanding the applicant's credit from the above, you can also understand its debt ratio according to its credit card business. After all, in addition to personal credit, the most important thing for banks to grant loans is the applicant's ability to contribute.

For those applicants with excessive credit card debt, banks will think that these people are at risk of default, and naturally they will not approve loans easily.

Of course, this does not mean that the credit card debt will be rejected, mainly depending on the applicant's debt ratio.

Under normal circumstances, personal debt ratio = total debt/total income * 100%, while relatively loose banks stipulate that there is room for lending when the debt ratio does not exceed 50%, and the debt ratio does not exceed 60% at the highest. Once it exceeds this range, it is a sign of insufficient repayment ability, and it is more likely to be refused a loan.

For a simple example, if your credit card is overdrawn by 40,000 yuan, your monthly living expenses are 5,000 yuan and your monthly income is 80,000 yuan, then your debt ratio = 40,000+5,000/80,000 = 56%. This debt ratio can generally approve loans, but the bank may require you to deposit as a guarantee for repayment before giving you loans.