Bhg
  • Shop
  • News
  • Food
  • DIY
  • Garden
  • Travel
  • Renovating
  • Decorating
  • Property
  • Health
  • TV
  • Podcasts
Bhg
  • Shop
  • News
  • Food
  • DIY
  • Garden
  • Travel
  • Renovating
  • Decorating
  • Property
  • Health
  • TV
  • Podcasts
Subscribe
YOU’LL NEED A WEDGE TO HANG THAT DOOR
Watch 6:32

YOU’LL NEED A WEDGE TO HANG THAT DOOR

{headline}

{headline}

Mortgage words first home buyers need to know

Mortgage words first home buyers need to know

How to choose the right home loan for you

How to choose the right home loan for you

3 ways to pay off your home loan faster

3 ways to pay off your home loan faster

5 legal ways to reduce your capital gains tax on investment property

5 legal ways to reduce your capital gains tax on investment property

{headline}

{headline}

How you can save money on your home loan by going green

How you can save money on your home loan by going green

This is how long it takes to save a home deposit in Sydney

This is how long it takes to save a home deposit in Sydney

The potential property hotspots for 2020

The potential property hotspots for 2020

{headline}

{headline}

The January 2020 changes all first home buyers need to know about

The January 2020 changes all first home buyers need to know about

Why you should reconsider hosting an open house inspection

Why you should reconsider hosting an open house inspection

How to know if a home isn’t worth the listed price

How to know if a home isn’t worth the listed price

Three things you should never do at an open house inspection

Three things you should never do at an open house inspection

The suburbs in Australia where it’s cheaper to buy than rent

The suburbs in Australia where it’s cheaper to buy than rent

How to find the right suburb for your ‘forever’ home

How to find the right suburb for your ‘forever’ home

What to renovate, fix or makeover for the highest return on investment

What to renovate, fix or makeover for the highest return on investment

  1. Home
  2. Property

How just one credit card can affect your home loan application

Essential advice for house-hunters. - by Laura Barry
  • 09 Oct 2019
How just one credit card can affect your home loan application

There are currently around 16 million active credit cards in Australia right now – that’s almost one card per person. The Australian Bureau of Statistics also reports that around two-thirds of Australian households either own their home or are in the process of buying. 

However, did you know that by simply owning a credit card (even if there is nothing owing on it) you could be reducing your chances of having a home loan application approved?

As anyone who has ever applied for any finance product will tell you, banks and financial institutions will always ask how many credit cards you hold and how much the combined limit of them is. However, they rarely ask how much is owing on them.

The reason for that is because the lender only cares about your ability to service the loan, should they approve the application. That means, they don’t care if you’ve paid the card off. They only care if you could service both the loan, and your credit card payments, in the event you maxed out your limits.

RELATED: 5 ways to get out of debt 

For this reason, the Home Loan Experts recommend that the best thing you can do to maximise your chances of getting a home loan approved is reducing your credit card limit to the smallest possible minimum to suit your needs, at six months prior to applying for the loan.

This way you reduce your financial liability.

* This financial advice is general in nature and does not take into consideration your personal circumstances.

You might also like:

The BHG guide to home ownership 

  • Property
  • Finance
Laura Barry
Laura Barry
Laura Barry is a writer, bookworm and interior design enthusiast with a love for reporting on all things homes, travel and lifestyle. When not tapping away at her keyboard, Laura can be found making endless cups of tea or perusing the shelves of Sydney’s many bookstores.

Get your mag delivered!-Save 29% off the cover price!

Subscribe for $4.95 per issue

Subscribe Now
Get your mag delivered!

Get your mag delivered!-Save 29% off the cover price!

Subscribe for $4.95 per issue

Subscribe Now
Get your mag delivered!

Dream Homes

Powered By

Recommended to you

YOU’LL NEED A WEDGE TO HANG THAT DOOR
Watch 6:32

YOU’LL NEED A WEDGE TO HANG THAT DOOR

{headline}

{headline}

Mortgage words first home buyers need to know

Mortgage words first home buyers need to know

How to choose the right home loan for you

How to choose the right home loan for you

3 ways to pay off your home loan faster

3 ways to pay off your home loan faster

5 legal ways to reduce your capital gains tax on investment property

5 legal ways to reduce your capital gains tax on investment property

{headline}

{headline}

How you can save money on your home loan by going green

How you can save money on your home loan by going green

This is how long it takes to save a home deposit in Sydney

This is how long it takes to save a home deposit in Sydney

The potential property hotspots for 2020

The potential property hotspots for 2020

{headline}

{headline}

The January 2020 changes all first home buyers need to know about

The January 2020 changes all first home buyers need to know about

Why you should reconsider hosting an open house inspection

Why you should reconsider hosting an open house inspection

How to know if a home isn’t worth the listed price

How to know if a home isn’t worth the listed price

Three things you should never do at an open house inspection

Three things you should never do at an open house inspection

The suburbs in Australia where it’s cheaper to buy than rent

The suburbs in Australia where it’s cheaper to buy than rent

How to find the right suburb for your ‘forever’ home

How to find the right suburb for your ‘forever’ home

What to renovate, fix or makeover for the highest return on investment

What to renovate, fix or makeover for the highest return on investment

Bhg
  • About Us
  • Subscribe Today
  • Contact Us
  • Terms and Conditions
  • Privacy Policy
Bhg Magazine Subscribe
  • About Us
  • Subscribe Today
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

Brands

  • All Recipes
  • BHG Shop
  • Girlfriend
  • Home Beautiful
  • New Idea
  • New Idea Food
  • Practical Parenting

Our Network

  • marie claire
  • Instyle
  • Beauty Crew
  • Who
  • Women's Weekly Food
  • Bounty Parents
  • That’s Life
  • Perth Now
  • The West Australian
  • 7Plus
  • Airtasker
  • 7NEWS
  • SocietyOne
  • Health Engine
  • Starts at 60
© 2021 Are Media PTY LTD
Get more from Better Homes and Gardens

Magazine Subscription Offer

Get your mag delivered!-Save 29% off the cover price!

Shop This Offer
Get your mag delivered!