Credit Card Question

kluivert

I was wondering can anyone tell me if having a credit card will affect a mortgage application.

I would like a to get a credit card so I can pay for car tax subscription fees and airline flights, the card will only be used about 5 times a card in total.

I have always been very weary of them, due to interest and hidden charges etc.

If I was to get one I would set up a direct debit so it gets paid as soon as the bill is issued.

Can anyone spread some light on this please.

Paraic

Hi
A Credit card which has no outstanding debt and never any default payments will not make a difference to getting a mortgage. Hope this helps!:)

Paraic@obrienfinlay
Mortgage Broker
Baggot St
Dublin 4
Ph:6601033

DamoKen

kluivert wrote:

I was wondering can anyone tell me if having a credit card will affect a mortgage application.

I would like a to get a credit card so I can pay for car tax subscription fees and airline flights, the card will only be used about 5 times a card in total.

I have always been very weary of them, due to interest and hidden charges etc.

If I was to get one I would set up a direct debit so it gets paid as soon as the bill is issued.

Can anyone spread some light on this please.

shouldn't affect it, unless of course you've got a sh*tload of debits on it when a credit check is run. When I was applying for my mortgage I just made sure I had all outstanding charges paid off by the time my application went to the underwriters.

Idleater

If you are diciplined then there is no problem with CC's. It should have no effect (either way) on a mortgage application provided you keep up payments.
I don't think there are many (any) hidden charges. They openly state the rate (something in the order of 20%) so ignore any 0% "offers" as they only last 6 months before the proper rates kick in.

My advise is to set up a DD to pay 100% of the bill each and every time.
Use online banking to pay it off earlier if you want.
Do not use your CC as an ATM card (to withdraw cash from a banklink machine).
Be aware that the exchange rates charged on foreign currencies is probably different (in the banks favour obviously) to what you see advertised in the BdC.

HTH for the moment.

L.

chuckles30

I have had a credit card for years and always paid it off at the end of the month. Didn't cause any problems when getting my mortgage. There's no hidden charges apart from the €40 that the govt get once a year - boy do I hate that!!

kluivert

Cheers lads thanks for that.

I would only use it 4-5 times a YEAR.

So thats 5 govt charge everytime I use it.

Kluivert

DamoKen

kluivert wrote:

So thats 5 govt charge everytime I use it.

Kluivert

sorry are you asking do they charge each time you use it? It's a yearly charge of the same amount regardless of the number of times you use your card. Sorry if I misunderstood

kluivert

Sorry in retrospect it will cost me around 5-8e per transaction as I will not use it that much but depends on how many transactions I make, which would be around 5-10 a year. Car Tax, Flights to UK, ACCA Subs' etc. I will not use it for cash withdrawals or clothes, food etc you know.

The above charge being the 40 government tax.

Sorry if that appeared misleading.

foggy

If you have the money when you need it and are only using the cc to pay for things on-line for convience then why not get a lazer card. It can be used to pay for motor tax, many online companies take it for flights etc. I'm not too sure about the ACCA though. I was looking at their application from recently and I think they only take switch ( the british equivilant of Lazer).
The lazer card is taxed at 20 euro per year so it would lessen the cost per transaction.

BuffyBot

Indeed, responsible use of a credit card can be a positive thing when building up ones credit record. The key word there is responsible.