How to use a credit card properly.
Last updated: 3 Aug 2025
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Credit cards are a financial product that can increase our spending power. However, they are also a double-edged sword. If used carelessly, they can significantly impact our chances of getting a home loan approved. This is because banks can examine your credit card usage data, which reflects your detailed financial behavior, which they then use to decide whether or not your home loan application should be approved.
Therefore, those who want to easily get a home loan approved should adjust their credit card usage behavior to build trust with the bank. The following guidelines for proper credit card use are available:
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1. Never pay the minimum payment.
Paying the minimum payment without paying the full amount is a major cause of the credit card debt crisis. This behavior reflects a lack of financial discipline, leading to credit card users being unable to repay their debts in full. Therefore, if you want to get a home loan approved, you should pay in full and avoid paying the minimum payment as much as possible.
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2. Pay your credit card debt on time.
If a bank discovers that a home loan applicant has a history of irregular credit card payments or long periods of delinquency, it will be more difficult to approve your loan. If you can't even pay off credit card debt on time, it's highly likely that you won't be able to pay off your home loan either, as home loan installments are several times higher than credit card debt.
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3. Don't overuse credit cards for purchases.
While credit cards are a product that gives credit cardholders greater purchasing power, with 0% interest installment plans now offering significant purchasing power, banks can significantly increase their purchasing power. However, from the perspective of banks that approve home loan applications, they assess the applicant's high spending habits. If they include home loan debt, they may be unable to keep up with the payments or face financial problems during the repayment period. Furthermore, if you have outstanding credit card debt at the time of your loan application, your chances of getting approved for a home loan will be even lower. This lowers your debt burden and reduces your ability to meet the bank's loan criteria, making the bank less confident in approving your loan.
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Credit cards are a financial product that helps you build good credit, as not everyone can qualify for a credit card. To qualify for a credit card, you must have a stable income that banks can trust. Therefore, when considering a home loan, credit cards are a significant advantage, making it easier for banks to approve your loan. Overall, banks will also consider the applicant's credit card usage behavior, including whether they pay their debts on time and whether they have extravagant spending habits. If a borrower knows and understands how to properly use a credit card, they are more likely to receive a smooth home loan approval.
___________________________________________
Thank you for the great information from REIC.
Therefore, those who want to easily get a home loan approved should adjust their credit card usage behavior to build trust with the bank. The following guidelines for proper credit card use are available:
___________________________________________
1. Never pay the minimum payment.
Paying the minimum payment without paying the full amount is a major cause of the credit card debt crisis. This behavior reflects a lack of financial discipline, leading to credit card users being unable to repay their debts in full. Therefore, if you want to get a home loan approved, you should pay in full and avoid paying the minimum payment as much as possible.
___________________________________________
2. Pay your credit card debt on time.
If a bank discovers that a home loan applicant has a history of irregular credit card payments or long periods of delinquency, it will be more difficult to approve your loan. If you can't even pay off credit card debt on time, it's highly likely that you won't be able to pay off your home loan either, as home loan installments are several times higher than credit card debt.
___________________________________________
3. Don't overuse credit cards for purchases.
While credit cards are a product that gives credit cardholders greater purchasing power, with 0% interest installment plans now offering significant purchasing power, banks can significantly increase their purchasing power. However, from the perspective of banks that approve home loan applications, they assess the applicant's high spending habits. If they include home loan debt, they may be unable to keep up with the payments or face financial problems during the repayment period. Furthermore, if you have outstanding credit card debt at the time of your loan application, your chances of getting approved for a home loan will be even lower. This lowers your debt burden and reduces your ability to meet the bank's loan criteria, making the bank less confident in approving your loan.
___________________________________________
Credit cards are a financial product that helps you build good credit, as not everyone can qualify for a credit card. To qualify for a credit card, you must have a stable income that banks can trust. Therefore, when considering a home loan, credit cards are a significant advantage, making it easier for banks to approve your loan. Overall, banks will also consider the applicant's credit card usage behavior, including whether they pay their debts on time and whether they have extravagant spending habits. If a borrower knows and understands how to properly use a credit card, they are more likely to receive a smooth home loan approval.
___________________________________________
Thank you for the great information from REIC.
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