As people ' s standard of living improves, more and more people choose to buy property to improve their quality of life. In the process of purchasing the property, most people need to make a loan to the bank, and whether the loan application is passed is closely related to the personal credit position. Many people who own credit cards may also have credit card arrears, and would that affect individual mortgages

Do credit card arrears affect mortgages

Partial impact on mortgages

First of all, it is explained that credit card arrears affect the individual ' s credit record and thus his or her application for credit. The letter-writing record is an important proof of a person ' s credit position, including personal information, credit records, the status of credit loans, credit card accounts, etc. When credit card arrears arise, banks, etc. report this information to the Central Bank's personal letter system, creating a blacklist, which reduces individuals' credit scores。

Credit status has a significant impact on individual applications for loans, and generally most banks do not even offer loans to those with poor credit records. Even when a bank agrees to provide a loan, the amount of the loan received by a person with a poor credit record will be somewhat affected, and the amount of money that you can ultimately lend is less than that of a person with a good credit record。

As the threshold for bank loans is becoming lower and the number of restricted projects is increasing, and the record of letters is becoming one of the criteria for determining whether a person fulfils the basic conditions for a loan application, the compliance of a person ' s credit record with the requirements of the bank is one of the important factors influencing an individual ' s application for a loan。

Overall, credit card arrears may have a certain impact on individual mortgages, highlighting the important role of credit records in individual loan applications, but the extent of the impact can be limited in part by credit card arrears alone。

Bank requirements for loan clearance

When a loan application is approved, the bank reviews three main conditions of the borrower, including repayment capacity, repayment records and collateral value. Repayment records are an important basis for measuring a person ' s good creditworthiness. If the borrower's credit records are poor, they affect the repayment records, thus affecting the credit rating of the individual's ability to repay。

If a person had a large credit card arrears, the credit records would be poor, which would affect the rating of the individual ' s repayment record and ability, with some impact on the approval of loan applications. However, when reviewing a loan application, banks do not rely solely on the borrower's letters of credit as a measure. They also take into account a variety of factors, including age, occupation, monthly income and length of service, to reflect a person's ability to repay. In addition, if the value of the collateral is higher than the amount of the loan, the bank is more willing to lend to the lender。

Correct user credit card usage

When it comes to the correct use of credit cards, it may be understood that a decline in credit records would not occur as long as the monthly payments were made on time and within their capabilities. Timely repayment, whether on credit cards or loans, is the most critical point in building a good personal credit record。

In addition, for the first use of a credit card, many personal information is required when applying. In order to avoid the problem of the disclosure of their personal information, which leads to the creation of arrears in the application of a credit card by a third party, it is also an important aspect of the correct application of a credit card。