Most people know that a checkered credit history can disqualify you for a home loan, and maxed-out credit cards 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.
The moral of the 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.
To Learn More, Contact Bill Cullin Today.
Bill Cullin, REALTOR®
Websites:
Cell: 302-841-7147
Office: 302-227-2541
Toll Free: 1-800-462-3224, xt 117
Fax: 302-227-8165
Long & Foster Real Estate, Inc
37156 Rehoboth Avenue Ext, Suite 5
Rehoboth Beach, Delaware 19971
