Credit Tips: How Credit Card Companies Look At Home Ownership

Posted On: March 1, 2006

Author: Mandarine
Posted: Wed Feb 25, 2004 7:13 pm
Post subject: How Credit Card Companies Look At Home Ownership

How is Rent or Own Home viewed during the application process? What about Monthly Rent payment? What’s looked upon more favorably?

Author: Guest
Posted: Wed Feb 25, 2004 7:46 pm
Post subject: How Credit Card Companies Look At Home Ownership

OWNING

author: Mandarin
Posted: Wed Feb 25, 2004 9:29 pm
Post subject: How Credit Card Companies Look At Home Ownership

OK, do they like better higher rent payment or lower rent payment?

Author: Verne
Posted: Wed Feb 25, 2004 11:04 pm
Post subject: How Credit Card Companies Look At Home Ownership

They like lower rent payments. They compare it to your income. If your rent payments (like a mortgage) are too high in relation to your income (say over 35%) a potential creditor is less apt to extend credit. There are lots of different formulas, some not allowing anything over 20%, others allowing as much as 50%.

NightStar probably knows the skinny on this better than I do. I’ve always rented and don’t know much about mortgages. But they look at rent in much the same way, in trying to determine what is acceptable for your income.