Credit limits and spending behavior are two of the many factors that a lender will check in getting a home loan mortgage.
Australians are making increasing use of credit cards and buy-now-pay-later services, which could potentially have implications when they make home loan applications. Credit card applications in the June 2022 quarter were 6.0% higher than the June 2021 quarter, according to Equifax, one of Australia's big three credit bureaus.
BNPL use can also affect your borrowing power, because lenders may wonder how much of a mortgage you could be trusted with if you make a lot of non-essential purchases and seem unable to pay for them in full at the time. So to protect your borrowing power, you could either reduce your BNPL use or stop it altogether.
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