Real Estate

Will cli help or hurt a mortgage application?

  • Last Updated:
  • Jan 14th, 2020 10:50 am
Newbie
Oct 1, 2019
76 posts
23 upvotes

Will cli help or hurt a mortgage application?

I've got 2 credit cards and one of them offered a credit limit increase from 1k to 5k. Could accepting this help my future mortgage application? I've read some conflicting articles that say yes, no and it doesn't matter. At the moment I'm only keeping this card active to not hurt my credit score by closing it although I'm not sure if that would also hurt a future mortgage application either.
4 replies
Deal Expert
Feb 29, 2008
21739 posts
21357 upvotes
Tarrana & The Ri…
If you plan on buying something, do not accept. Think about it. Worse case it will keep you from spending.
Deal Fanatic
Jan 15, 2017
5751 posts
6124 upvotes
Ottawa
Mortgage approval is based on a many factors, so difficult to say with any certainty. A credit card with a $1000 limit is not a strong credit product. Having 2 credit cards with low credit limits generally will not demonstrate strong credit responsibility. In general, the credit limit of $5000 should help - assuming of course that you are responsible with it.
Member
Dec 5, 2017
299 posts
317 upvotes
But there will be a temporary decrease to your credit score for the credit inquire.
Newbie
Oct 1, 2019
76 posts
23 upvotes
thanks, I don't intend to spend more with it and everything I buy, I pay it off the same day. My other card has points and a larger limit already. What I have read is that having a higher limit does help credit score a little bit especially if it reduces the credit utilization ratio.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)