How charge cards and applying for a mortgage works.

[fantasy86dj]

Good afternoon all,

Question - how does having a charge card affect applying for a home loan?

E.G I have one of these https://www.americanexpress.com/au/content/the-american-express-card/

How does having this card affect my ability to borrow - I am just after general info.

Thanks

 

[opusman]

Not at all if you don't mention it on the application form.

 

[fantasy86dj]

Won't it come up when the credit check is done...

 

[opusman]

Won't it come up when the credit check is done...

Nope, your credit history just shows recent applications and defaults, there's no information about what actual credit you have.

 

[coles525]

Nope, your credit history just shows recent applications and defaults, there's no information about what actual credit you have.

Might be wise to subscribe to your credit file, as on one of my files (3 credit file companies now exist!) it shows I have 2 active credit cards which are now open/used.

 

[beni050385]

You will need to put it down, it appears on your credit file as an on going credit relationship. We put down the approximate comfort limit as the credit limit. If your company pays the bill via reimbursements get a letter stating this. If you don't mention it when they cross reference bank statements they will also see the payments and ask you anyway.

 

[Smart Flyer]

Hi having been involved with Mortgages as broker with nearly all lenders over the past 12 years, if it is a charge card it does not need to be disclosed as it is not classed as obtaining credit (confirmed by the lenders) also if you have a credit card/s and produce 3 statements showing the balance is paid off in full each month, some lenders will also ignore the credit limit of the card. So in you have a number of cards but pay the balance due in total each month it can well be worth finding a lender who accepts this and it can make a huge difference to your borrowing ability.

 

[fantasy86dj]

Thank you all !!!

 

[lovestotravel]

They are treated as having a $10k credit limit

As others have said, you DO want to list it because if you are applying with the same bank that you may BPAY payments from they will see it in your BPAY history

 

[rweir]

Nope, your credit history just shows recent applications and defaults, there's no information about what actual credit you have.

untrue, some cards will show up in the "Current Credit Providers" section of your report, and current Amex accounts definitely show up.