Why will bank consent to childlike folks hold as oodles credit cards as they want but won't permit them hold a mortgage ?
Could it be to do with the very much greater interest rates for the cards ?
Answers:
Looks like you hold answered your own question. It was instrument before the credit crunch they did this.
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It's not one and only the higher interest rate, but also the amount of money they are trusting younger people beside. Credit cards are just a way to buildup trust between you and bank. By showing you can make strong and consistent payments on a small sum of money, you earn the trust to receive a mortgage.
The reason boils down to what is known as debt service ratio. Normally a infantile person might earn between 40,000 to 50,000 per year. Now that's on average about 3,000 to 4,000 monthly. Now depending on the card issuer they might close up getting a card with a limit of 5 - 10 thousand.
The maximum minimum wage on this type of card might be 300 - 500 bucks a month. That's a short term payment and a bank will look on that fact.
However a mortgage will have a much high monthly payment and this will be FIXED. This means that the immature person can't pay this down surrounded by a short period of time.
This is the main risk factor. There are other reason as well but you can learn more at justcardoffers.com Source(s): http://www.justcardoffers.com
http://homerepairloans.info
this is true plus you will go so deep within debt with the cards you wont be able to afford a home Source(s): be there done that
Mortgage lending is say aloud lb80,000 +; credit card limits can be lb500; lb1000; lb1500 etc.
I have a credit card, have it for years, I didn't abuse and get into debt, hold never once paid interest on yet, and because of it I hold achieved a good credit rating and get a mortgage.
Related Questions:
Who can explaing to me why the mortgage company won't credit my payments to my commentary?
Due to the economy, we have be a bit slow in paying our mortgage. We were paying the full amount every month, but usually a bit delayed. Because our payment did not include the late salary fee, they...
Answers:
Looks like you hold answered your own question. It was instrument before the credit crunch they did this.
x
It's not one and only the higher interest rate, but also the amount of money they are trusting younger people beside. Credit cards are just a way to buildup trust between you and bank. By showing you can make strong and consistent payments on a small sum of money, you earn the trust to receive a mortgage.
The reason boils down to what is known as debt service ratio. Normally a infantile person might earn between 40,000 to 50,000 per year. Now that's on average about 3,000 to 4,000 monthly. Now depending on the card issuer they might close up getting a card with a limit of 5 - 10 thousand.
The maximum minimum wage on this type of card might be 300 - 500 bucks a month. That's a short term payment and a bank will look on that fact.
However a mortgage will have a much high monthly payment and this will be FIXED. This means that the immature person can't pay this down surrounded by a short period of time.
This is the main risk factor. There are other reason as well but you can learn more at justcardoffers.com Source(s): http://www.justcardoffers.com
http://homerepairloans.info
this is true plus you will go so deep within debt with the cards you wont be able to afford a home Source(s): be there done that
Mortgage lending is say aloud lb80,000 +; credit card limits can be lb500; lb1000; lb1500 etc.
I have a credit card, have it for years, I didn't abuse and get into debt, hold never once paid interest on yet, and because of it I hold achieved a good credit rating and get a mortgage.
Related Questions:
Who can explaing to me why the mortgage company won't credit my payments to my commentary?
Due to the economy, we have be a bit slow in paying our mortgage. We were paying the full amount every month, but usually a bit delayed. Because our payment did not include the late salary fee, they...