Managing card debt wisely helps home buyers
By UK CreditCards.com
Obtaining loans for home purchases is likely to be made easier if people use credit cards for most of their spending.
That is the view of several brokers, who explained to the Evening Standard that using credit cards often and paying off bills on time can boost customers' credit scores.
As they prove that they can manage debt through credit card usage, the brokers said, they are more likely to have their mortgage applications approved.
This is particularly beneficial for people who might struggle to put down large deposits and are looking for mortgages which can cover between 85% and 95% of their ideal property's value.
Ray Boulger of John Charcol told the London newspaper: "My best advice to someone hoping to buy with a small deposit is to live on a credit card. Buy your groceries on it, go out to dinner on it, spend on it what you'd normally spend on a debit card. And make sure you pay it off each month to prove you're handling the debt."
Published: 2 September 2009
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