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Credit card

Discussion in 'Property Finance' started by Small_investor, 14th Jul, 2016.

  1. Small_investor

    Small_investor Active Member

    Joined:
    22nd Jun, 2016
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    30
    Location:
    melbourne
    Is it a common practice to have your credit card connected to your home loan, therefore affecting the offset balance. I am with NAB package. Any thoughts...
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Common for it to be part of the package, but it doesn't affect offset balance.
     
  3. Small_investor

    Small_investor Active Member

    Joined:
    22nd Jun, 2016
    Posts:
    30
    Location:
    melbourne
    When I check online it adds the credit card balance to home loan amount. I will clarify from the bank.
     
  4. TaylorChang

    TaylorChang Well-Known Member

    Joined:
    2nd Jul, 2015
    Posts:
    167
    Location:
    Sydney
    What credit card will affect is your future borrowing capacity.
    Even you are not using your credit card and still have it open.
    The future lender(s) will see it as an liability; as a result, it will reduce your future borrowing power.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
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    Location:
    Canberra and Sydney
    The credit card shouldn't have anything to do with the home loan.

    Having said that - I'd look to use the credit card for everyday spending (to rack up points) and then clear it each month with funds from your offset (so you'll have a little bit of interest on your home loan).

    Cheers

    Jamie