Most people know that have a checkered credit history can disqualify you for a home loan. Making monthly payments on credit cards charged up to the limit can do the same thing. But what most people don't know is that merely having a large number of credit cards, even with low balances and a history of timely payments can disqualify you for a home mortgage loan just as quickly.
According to credit experts, having a number of credit cards can be just as detrimental to the granting of further credit as a history of late payments. Lenders look at it this way: If you have ten credit cards, each with a limit of $5,000, that means you have the potential to run up $50,000 in debt virtually any time you choose. That mere possibility makes you a greater risk, from their point of view.
What’s the moral of this story? If you are planning to apply for a home loan in the future, keep only those credit cards you actually need to use and cancel the others.
Contact us at wawaseerealestate.com or 4warsawhomes.com for more direction and advice on buying a residential or lake home in Kosciusko County.
