How Credit Cards Affect Getting a Mortgage
What mortgage lenders look at
Your cards shape several inputs a mortgage underwriter weighs: your credit score (driven heavily by utilization and payment history), your monthly minimum payments (which count toward your debt-to-income ratio), and recent hard inquiries and new accounts. High card balances hurt twice: they lower your score and raise your debt-to-income ratio.
What to do before applying
In the months leading up to a mortgage, pay card balances down so your reported utilization is low, which lifts your score at the moment it matters most. Keep paying everything on time, and resist closing old cards, since that can shorten your history and raise utilization. A higher score can mean a meaningfully better mortgage rate. See how to improve your score.
What to avoid
Do not open new credit cards or finance large purchases right before or during the mortgage process. A new card adds a hard inquiry, lowers your average account age, and the new payment hits your debt-to-income ratio, any of which can jeopardize approval or your rate. Hold off on new applications until after closing. See when to apply.
Frequently asked questions
Related reading
