Does credit card affect mortgage approval?

Nowadays, it is normal to apply for a bank loan to buy a house, but not everyone can apply for a bank loan. Among them, people who use credit cards should pay attention. So, do credit cards affect mortgage approval? Today, the editor will talk to you about the impact of credit cards on mortgage approval.

1. Do credit cards affect mortgage approval?

The use of credit cards has a great impact on mortgage approval.

1. Overdue credit card payments will affect your credit report

When doing business with banks, a good personal credit report is a prerequisite. The bank can reject your loan application because you have bad credit;

2. High credit card limit affects mortgage approval

The limit is equivalent to borrowing from a bank, which will affect the mortgage purchase of a house. Especially provident fund mortgage loans to buy a house.

3. Credit cards affect 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-debt service ratio acceptable to banks is 0.5, that is, the total monthly income should be twice the total monthly debt service expenses.

4. 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 credit limit of the cardholder. Multiple credit cards are inconvenient to manage and can easily lead to overdue credit cards. So, as long as your credit card is enough.

5. High overdue times and high overdue amounts

Usually, banks will look at the borrower’s loan records within 5 years and credit card credit records within 2 years. The number of overdue times and overdue amounts are very important. , banks with strict requirements may look at you differently because you are only overdue once, by 1 yuan, because in their view, any overdue period is a reflection of the lender's repayment habits, and this kind of repayment needs to be considered. Will your habits have an impact on your subsequent mortgage repayments?

Article summary: The above is all about whether credit cards affect mortgage approval. When using credit cards, be careful not to use too many. Just use enough cards so that they are easy to manage. If there is a bad record in your credit report, it will only be updated every five years. Can I apply for a housing loan if I have a credit card?

Yes. Mortgage and credit cards are closely linked: If you have a mortgage, you don’t even need to provide other information except your ID card when applying for a credit card. The bank's idea is simple: if you have a loan, it means you have collateral or a very potential customer. The approval standards for applying for a credit card are far less stringent than those for applying for a loan. Once the loan has been approved, the credit card center will issue the card directly without further review. The limit depends on the loan amount, which is generally higher than without a loan.

The impact of credit card overdrafts on housing loan processing

The first type is a normal overdraft of the credit card without overdue payment; the second type is a malicious overdraft of the credit card and poor credit.

1. Normal credit card overdraft, no overdue payment

The main function of a credit card is overdraft, that is, "spend first, pay back later". At present, more and more people are applying for credit cards, and some people even apply for more than five credit cards.

However, having too many credit cards is a very dangerous thing, and overdue repayments may occur if you are not careful.

What needs to be reminded is that when applying for housing loans, car loans and other loan products, those with overdue repayment records often face the consequences of "bank disapproval". Those who hold a small number of cards, use their credit cards normally, and have no overdue records will not have much impact.

2. Malicious credit card overdraft, poor credit

Malicious credit card overdraft means that the cardholder overdrafts beyond the prescribed limit or within the prescribed period for the purpose of illegal possession, and the card-issuing bank has twice Failure to return the money more than 3 months after collection.

Generally speaking, malicious credit card overdraft behavior will leave a bad credit record in the card-issuing bank and affect the cardholder's personal credit.

If the amount is larger, it also involves illegal crimes and faces imprisonment.

The possibility of successful mortgage loan application for this group of people is almost zero.

House purchase bank loan

1. Required conditions for borrowers

1. Natural persons aged 18-60 (Hong Kong, Macao, Taiwan, Mainland and foreigners are also acceptable) )

2. Have a stable career, stable income, and the ability to repay the principal and interest of the loan on time

3. The actual age of the borrower plus the loan application period should not exceed 70 years old

2. Materials to be provided by the borrower

1. Identity cards and household registration books of both spouses/temporary residence permit and household registration book for foreigners

2. Marriage certificate/divorce certificate Or 2 copies of the court judgment/certificate of single status

3. Proof of income (in the format specified by the bank)

4. A copy of the business license of the unit (with official seal)

5. Credit certificate: including academic certificates, other real estate, bank statements, certificates of deposit, etc.

6. If the borrower is a corporate legal person, it must also provide an annual inspection business license, tax registration certificate, Organization code certificate, articles of association, and financial statements.

3. The house seller should provide materials

1. ID cards of both spouses, household register, marriage certificate (marriage certificate or single certificate)

2. Will having too many credit cards with real estate certificates affect the mortgage loan?

Having too many credit cards will not affect the mortgage loan, but having overdue credit cards will affect the mortgage loan.

An overdue credit card will stain your credit record, making it impossible to handle financial needs such as buying a house or getting a loan within the next two years.

1. What should be paid attention to when applying for a loan:

Credit card installments and "Huabei" are loan activities, which will not only increase the number of credit inquiries, but also increase the liability of the individual. Make banks feel that consumers’ spending habits are not good.

Use credit cards appropriately to accumulate "integrity capital" for yourself. Loan products such as credit cards will lead to a black account if not used properly, and a clean account will occur if they are not used at all. Neither "black accounts" nor "white accounts" are high-quality customers for banks.

2. Factors affecting home purchase loans:

1. Nature of work;

2. Low bank flow;

3. Credit cards are overdue;

When using credit cards, be careful not to overdue repayments.

At the same time, water and electricity bills, property fees, and mobile phone bills are also included in the certification list.

4. Frequent inquiries on credit reports;

5. Too much debt;

6. The situation of the purchased house;

Extended information

Hot loan application materials:

1. Valid ID card and household registration book of the borrower;

2. Proof of marital status, if unmarried, need to provide If you are unmarried, you must provide a court civil mediation letter or divorce certificate (indicating that you have not remarried after divorce);

3. If you are married, you must provide your spouse’s valid ID card, household register and marriage certificate;

4. Proof of income of the borrower (certificate of salary income for six consecutive months or local tax certificate);

5. Property ownership certificate of the real estate;

6. Guarantee Person (need to provide ID card, household register, marriage certificate, etc.). Will applying for a credit card during the process of applying for a mortgage have an impact on the application for a mortgage?

Will it have an impact?

The "Measures for the Supervision and Administration of Credit Card Business of Commercial Banks" have corresponding provisions:

Article 40 The card-issuing bank shall establish and improve the credit review system of credit card applicants, clarify the management structure and Internal control mechanisms. Card-issuing banks should conduct credit investigations on credit card applicants.

Fully verify and completely record the applicant’s valid identity, financial status, consumption and credit history and other information, and confirm that the applicant has a fixed job, a stable source of income or reliable repayment guarantee.

Extended information:?

Relevant legal provisions of the "Measures for the Supervision and Administration of Credit Card Business of Commercial Banks":

Article 61 The cardholder continuously requires payment of more than To limit fees to complete overdraft transactions that exceed the credit limit, the card-issuing bank must immediately stop card use exceeding the credit limit after the end of the second billing cycle.

When a card-issuing bank conducts credit card marketing activities to students on the campus of any educational institution, it must notify the relevant educational institution in advance of the specific location, date, time and content of the marketing activity and obtain the consent of the educational institution.

Article 62: Card-issuing banks shall provide complaint handling services, establish unified and efficient complaint handling procedures based on the characteristics and complexity of credit card products (services), clarify the management department for complaint handling, and publicly disclose complaints. processing channels.