Will a mortgage broker clutch into consideration low interest credit cards if your credit win is low?(eg. 650)
Answers:
Low-interest cc's won't matter to a broker if they are being rewarded. A 650 score is good adequate to not worry about that card. Source(s): I'm a loan officer
Most of the other advice here is honest, but I will add a few points.
As it has be stated, your credit card interest rate is meaningless in terms of mortgage qualification. Idealy, you do not want any one credit card statement balance to be over 30-35%. The closer you get to your target, the more "red flags" go up.
As someone else said, try to request a higher issue, pay the balance down, or try to verbs some of the balance.
Mortgage qualification essentially consists of three things: your credit score/history, income (especially the DTI ratio), and the property LTV (loan to value ratio).
You may want to a look at my website, it is NOT a sale site, and has alot of good info. This is a direct correlation to the section that explains mortgage qualification: http://www.mortgagemystery.com/mortgage-…
Your credit score is in fact not that low. You are in the A paper or Alt-A quality newspaper mortgage category, meaning you will qualify for mortgage programs that offer righteous rates. Source(s): Senior Mortgage Consultant and owner/author of http://www.mortgagemystery.com/
The credit bureau's don't know the rate on the cards, nor do they care. The care just about made or missed payments. They care about how abundant accounts you have and how long you have have them. And they care about the percentage of your debt compared to the total you hold available to borrow.
Try to request a balance increase from your Am Ex account. This will lift up your available balance. On some credit reports, Am Ex shows up as if you owe the full balance every month. This make your debts look way worse than they really are. A card statement would correct this error. Source(s): Former credit counselor and current Financial Adviser
The rate some credit card company will pass you has ZERO bearing on your qualifications to finance a home. NONE.
My best guess is you owe $10,000 on a card that probably has a target right near $10,000?
Maxing out a single credit card WILL lower your score. That's one benefit of bank getting you to transfer balances over to them. Your evaluation drops, and you're stuck with them. Miss one payment by sometime and that 5% turns into 25% overnight! And you can't switch again because your scores won't get you a virtuous card to replace it with.
If you have other cards, it's possible that spreading out your set off over 2-4 other cards would help. As long as no single card balance exceeds 50% of it's available rein in, it might help. But having too several cards with balances can be a gloomy as well, though probably not as bad as one completely maxed out card.
If you hold any cash, pay it down or income it off. You're better off doing that than putting a down money down with those scores, and using the down sum to pay off that debt instead. Source(s): 10 years surrounded by mortgage banking
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