How Much Does a Credit Card Affect Your Ability to Borrow

Credit cards are a common pitfall for first home buyers. Mortgage Lab CEO Rupert Gough takes you through exactly how much your credit card limits impact your ability to get a mortgage. "One of the first things you need to know is the difference between a balance and a limit. You might have a limit of $10,000 and be able to borrow up to that amount. But you may never have spent more than $1,000 on your credit card. Unfortunately, when you're applying for a mortgage, the bank has to assume the worst case scenario. And that would be you blowing out their credit card or maxing it out to its limit..." If you are unsure where to start or have any questions, don't hesitate to contact the team at mortgagelab.co.nz/contact-us, we're here to help. //Creative Commons Attribution Licence video (Reuse allowed)