All you need to know about the impact of credit cards on your home loan


Almost ready to apply for that loan? Continue reading to see how your credit greeting card(s) could impact your borrowing ability. We’ve also received some helpful tips to help you understand a bit more about the agreement process.

The lowdown on limits and balances
Having a debit card influences how much you can borrow. Although you’ve never strike your limit and always make your payments promptly, lenders see it just as one debt in the foreseeable future. So, the bigger the mixed limit of your cards, the low the total amount they can responsibly lend.

Importantly, lenders use the charge card limit, not the balance owing, to figure out your monthly credit-based card expense. They would like to be sure repayments can be satisfied even when the card has been maxed out.

Even though you don’t use your credit card, to lend responsibly we have to take into account an amount for your credit cards expenses as part of the mortgage loan application process to ensure you can still service the home loan as well as your credit cards.

Take back control
Keen to get back control of your bank cards and seal the offer on your dream home? Here’s a few handy hints and tips to obtain started;

Reduce your bank card restricts to the lowest amount you can comfortably use. This will likely automatically decrease the amount of credit-based card expenses that are factored into your home loan application assessment.

Pay your entire cards on time to avoid late payments showing on your credit file.

While paying off all your arrears can seem overwhelming, slow and constant wins the contest. Pay down all your money, one card at the same time.

Limit additional unsecured loans as this will increase your overall debt.
A Credit Card may seem to be like yet another tool which can help you buy things, but it for sure can do so much more! If used responsibly, a debit card will help you create a good credit score, also allowing you to get loans at favourable Interest Rates. It also helps you earn compensation factors on your day-to-day purchases which is often redeemed for Presents, vouchers, airfare tickets etc. CREDIT-BASED CARD also has sponsor of offers on various categories like Travel, Dining, Shopping, Bill obligations etc. MASTERCARD is safer for Online & Store purchase as the ventures are authenticated using PIN or OTP

However, almost all of us use Credit Cards in our everyday lives, but neglect to understand how exactly our BANK CARD works. Here’s an instant guide to the 5 things you sure need to find out about your adaptable Credit Card.

Balance Transfer Fee
A balance transfer payment is the amount you will be charged for transferring balance in one Credit Cardto another. This amount generally will take the proper execution of a percentage of the total amount being transferred.
Late Repayment Fees
As a debit card holder, if you do not make the minimum amount payment on your Credit Card which is 5% of declaration balance by stipulated night out or time on your bill, you’ll be put through a late repayment cost. This late repayment fee is largely standardised over the industry.

Minimum Repayments
Minimum repayments as the name suggests, is repaying minimum amount on your credit balances every month which is 5% of statement balance. Failing to this payment will business lead to a late repayment charge and you may run the chance of damaging your Credit Credit card rating
Easy EMIs


Pay in Equal Regular Instalments
No documentation required
On-the-spot approvals
Earn Regular reward things even on EMI transactions
So how exactly does Easy EMI work:
First, choose an outlet which is area of the Easy EMI program. Go to the electric outlet and choose the merchandise or services you intend to buy.

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