Loan Application and Credit Rating

Hi there,

I have question about whether having a credit card with a low limit affects a mortgage application.

I am planning to apply for finance for a self-build sometime in 2011.

Over five years ago, in ignorance!, I paid off my credit card late for a few successive months and my limit was reduced to 1397 euro.

Annoyed with myself, I transferred my salary to Bank of Ireland and used their VISA card as my main card. I kept the UB account open with about 5000 euro in it and occasionally used the UB Mastercard. Both balances for the last five years have been paid in full by direct debit each month.

I just did a credit check with the Irish Credit Bureau and all it shows a successful payment history on my Ulster Bank Mastercard Credit Card for the last 24 months. However, it still shows my low card limit. Currently, I have about 3000 in the Ulster Bank account.

Will the low limit on my UB credit card in the ICB report cause difficulties for my loan application in the current economic climate? Should I transfer my salary back to UB and apply for a credit limit increase?

I would have thought that a low limit would work in your favour!

If you haven't missed a payment on your credit card then don't worry.

A good savings record is more important to your application than your credit limit. Work on that.

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