Credit cards cannot be used to pay off mortgages. When a user applies for a mortgage, he or she will open an account at the lending bank, and the account opened will be used for repayment and deduction. To repay a mortgage, you deposit cash into a debit account, and the bank debits it on time. Credit cards can only be used for purchases and cannot be used to pay off mortgages. Credit cards cannot be used as a mortgage repayment account. That is to say, credit cards cannot use the credit limit to repay through consumption, and cannot enjoy the credit card's interest-free period of up to fifty days.

Therefore, the so-called using a credit card to repay the mortgage loan is actually withdrawing cash from the credit card to repay the mortgage loan. Once a credit card uses the cash withdrawal service, it is the beginning of the cardholder's interest "trap": various banks charge a handling fee ranging from 0.5% to 1% for domestic cash withdrawals. In addition to the handling fee, the cardholder must also pay There is interest, calculated based on the daily interest rate of 5% and the annual interest rate of 18%. It is equivalent to borrowing a high-interest loan in addition to the mortgage.

As to whether misappropriating credit cards to pay off mortgages is considered illegal cashing out, some people in the industry said that this can only be said to be taking advantage of legal loopholes. However, the person also said that according to relevant legal provisions, malicious overdraft of more than 5,000 yuan can be sentenced to 3 years in prison.

Does credit card installment affect mortgage?

1. Credit card installment means that when the cardholder uses a credit card to make a large purchase, the bank pays all the consumption funds to the merchant in one go, and then The process of allowing cardholders to repay their loans to the bank in installments. Credit card installment payment is actually a good way to improve your credit. As long as the cardholder guarantees to repay each installment on time and does not have overdue records, he will have a good personal credit record and business such as loans will not be affected. .

2. When applying for a loan from a bank, credit reporting is very important, but the bank will also consider the borrower's repayment ability. For example, when applying for a housing loan from a bank, the bank will conduct a comprehensive score based on the income certification materials provided by the borrower. If your credit card overdraft is too high, it will affect your debt. If your debt is too high, it means that you have insufficient repayment ability, which will affect the bank's score for you.

3. If the credit card installment has not been paid off, you can also apply for a housing loan. However, it will have an impact on the amount of housing loan approval. Therefore, if the applicant is worried that credit card installments will affect the mortgage application, it is the safest way to pay off the installments in advance.