Credit card

Discussion in 'Loans & Mortgage Brokers' started by Small_investor, 14th Jul, 2016.

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  1. Small_investor

    Small_investor Active Member

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    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...
     
    Small_investor, 14th Jul, 2016
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Common for it to be part of the package, but it doesn't affect offset balance.
     
    Terry_w, 14th Jul, 2016
    #2
  3. Small_investor

    Small_investor Active Member

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    When I check online it adds the credit card balance to home loan amount. I will clarify from the bank.
     
    Small_investor, 14th Jul, 2016
    #3
  4. TaylorChang

    TaylorChang Well-Known Member

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    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.
     
    TaylorChang, 19th Jul, 2016
    #4
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    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
     
    Jamie Moore, 19th Jul, 2016
    #5