Mortgage and Credit Card Info (bank account, lender, payment, debt)

[jamibit]

Does anyone know if a lender looks at your credit card spending for a mortgage if you have a zero balance. I pay my credit cards off every month and I'm not too worried about getting a mortgage but do they look at how much you spend on your credit cards every month or are they just concerned about a balance, if any?

[Debsi]

They will use the minimum payment amount that will show on the credit report for the month they run it.

It doesn't matter if your balance is $1500 or $3000 for the month, they'll use the $40 (for example) minimum payment to calculate your debt to income ratio.

[RTTNFAM]

Originally Posted by Debsi

They will use the minimum payment amount that will show on the credit report for the month they run it.

It doesn't matter if your balance is $1500 or $3000 for the month, they'll use the $40 (for example) minimum payment to calculate your debt to income ratio.

I was told that your credit card account balances do matter and that you should always try to keep them under 30% of the credit limit.??

[renriq02]

that applies to the FICO scoring model. If you have it low, then your score will be higher.

Originally Posted by RTTNFAM

I was told that your credit card account balances do matter and that you should always try to keep them under 30% of the credit limit.??

[renriq02]

July 1st...you shop with your credit card, and spend 4k on a 5k credit limit. You have more than enough in your bank account to payoff the 4k immediately, but you're getting 'rewards' for using your credit card.

July 20th....this credit card company likes to report their accounts on the 20th of every month. You're owing 4k on a 5k credit limit which is 80% of the credit limit.

July 28th is the due date for your credit card bill. You pay off the full amount, and you're smiling ear to ear.

You check your credit score, and realize your score is about 20-30 points lower. You're confused until you see the credit card on your credit report showing the 5k balance.

TIP - Find out when your credit card reports to the credit bureaus, and pay it off before that date!

[christeen]

Originally Posted by renriq02

TIP - Find out when your credit card reports to the credit bureaus, and pay it off before that date!

How do you find this out?

Helpful info, Debsi & renriq02 -- thanks!

[renriq02]

you have to call each individual credit card.

they usually tell you.....

[Karla with a K]

credit cards usually send the "tapes" every 30 to 45 days to the CB

[jamibit]

But what if you pay your credit cards off every month leaving no balance and the minimum payment doesn't apply? Will the amount you spend be relevant in getting a mortgage even though it is paid off completely no matter how much is spent every month?

[renriq02]

the use the numbers on the credit report...

Originally Posted by jamibit

But what if you pay your credit cards off every month leaving no balance and the minimum payment doesn't apply? Will the amount you spend be relevant in getting a mortgage even though it is paid off completely no matter how much is spent every month?