Credit Cards and Your Borrowing Capacity
Whether you plan on purchasing real estate now or some time in the far distant future, it is beneficial to stay on top of your borrowing capacity.
Home loans are not the only financial help you may need in your lifetime - car and educational loans are just a few examples of products you may need to secure from a lending institution.
One of the responsible ways to prepare for such a situation is to monitor your credit card activity.
It is recommended that you cancel credit cards that you do not use - lenders will take these cards into account when they calculate how much you can borrow regardless of whether they are being used.
Consolidating personal debt to maximise favourable interest terms will reflect better on your credit and impact on your borrowing capacity.
Store cards are often overlooked as a debt, but their high interest rates will be counted against your credit rating and will likely affect the amount you can borrow.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.