Should it be done at all? Or how long should one wait for before getting credit card when having a existing mortgage?
FYI:
- we are here in NSW
- getting credit card only to take advantage of the points and convenience in some case, not a necessity
Should it be done at all? Or how long should one wait for before getting credit card when having a existing mortgage?
FYI:
I cancelled all credit cards before taking the mortgage;
the question is more like, after the mortgage is completed, would getting any credit card considered as dishonesty and any negative impact to that
Having a credit card is great for a mortgage. Put everything on your card, then pay up when the interest free period expires.
In the meantime put everything on your home loan and redraw to pay your credit card as required.
You probably did not need to cancel those cards, and I’m surprised to hear you worry about dishonesty. What would be dishonest? You are allowed to have debt or credit with more than one company.
As long as you are honest on your income and debt declarations, go ahead and apply for the credit. If they don’t feel you could repay it, they won’t extend the credit. Those companies know everything :p
You don’t have to close it but when then calculate what you can repay, they assume you may max out all other lines of credit as well and have to repay that too, so closing a credit card (especially a large one) can add 10’s of thousands of dollars to your borrow limit.