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Old 07-15-2008, 03:45 PM
 
Location: Nassau, moving to Suffolk
46 posts, read 250,970 times
Reputation: 24

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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?
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Old 07-15-2008, 03:47 PM
 
Location: Richardson, TX
12,170 posts, read 20,245,130 times
Reputation: 32905
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.
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Old 07-15-2008, 03:58 PM
 
483 posts, read 1,497,965 times
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Quote:
Originally Posted by Debsi View Post
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.??
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Old 07-15-2008, 04:10 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 16,081,512 times
Reputation: 1008
that applies to the FICO scoring model. If you have it low, then your score will be higher.

Quote:
Originally Posted by RTTNFAM View Post
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.??
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Old 07-15-2008, 04:15 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 16,081,512 times
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Thumbs up Here's a tip for credit cards

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!
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Old 07-15-2008, 07:50 PM
 
Location: northern california
380 posts, read 2,285,564 times
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Quote:
Originally Posted by renriq02 View Post
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!
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Old 07-15-2008, 07:53 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 16,081,512 times
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you have to call each individual credit card.

they usually tell you.....
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Old 07-15-2008, 08:08 PM
 
Location: NE Florida
17,833 posts, read 32,041,713 times
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credit cards usually send the "tapes" every 30 to 45 days to the CB
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Old 07-16-2008, 08:44 AM
 
Location: Nassau, moving to Suffolk
46 posts, read 250,970 times
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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?
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Old 07-16-2008, 08:49 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 16,081,512 times
Reputation: 1008
the use the numbers on the credit report...

Quote:
Originally Posted by jamibit View Post
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?
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