Now that the purchase of housing has become a regular matter, the price of housing is also increasing, so that those who buy housing need to face the problem of mortgages. Before applying for a mortgage, many would have thought it necessary to pay back all the credit cards, but would that be necessary

You want to pay off all your credit cards before you apply for a mortgage

First, credit card repayments have a certain impact on bank approval of loan applications. By looking at your credit records during the credit card use, the bank will know your credit burden and your willingness to repay. The better the credit card repayment record, the more likely the bank will agree to your loan application。

Second, the level of use behind credit cards is also a consideration. If you have a credit card line that is above the reasonable range required by the bank, the bank may consider that your credit burden is excessive and naturally reduce the probability of granting you a loan. If you can repay the credit card in its entirety before you can apply for a mortgage, and the credit card balance is zero, the rate of use is naturally below reasonable range。

But is it true that paying off credit cards helps to apply for loans? In fact, credit card repayment is not the only important factor. Typically, the loan approval process takes into account a combination of credit data to make decisions, such as your work, income, the amount of the loan, the period of repayment, the type of credit, the loans available and the record of repayment. Thus, even if you have a bad record or an outstanding debt, as long as the overall credit report and the individual ' s financial position are in a good impression, the job is stable and the credit record is good, there may still be an opportunity to obtain the requested loan to finance the loan。

In addition, when considering the repayment of credit cards, you need to pay attention to the short- and long-term implications. If you pay credit cards only to optimize loan applications in the short term, such as today's credit cards, you apply for mortgages tomorrow, which does not disproportionately affect long-term credit records. However, if you give up the use of a credit card after you have fully repaid it, it may have a significant negative impact on credit records in the long term. Therefore, the short- and long-term impact on an individual ' s credit position needs to be fully weighed before considering the repayment of credit cards。

In the light of the above, the repayment of credit cards does, to some extent, contribute positively to the application for mortgages. However, before considering the repayment of credit cards, you need to have a full picture of your financial position and credit, and carefully weigh the impact of repayments on loan applications to make the best possible decision。