How Soon Can I Apply for Credit Card after Home Loan Approval?

RTY on 16/02/2024 - 10:17

Hi guys,

I got my formal home loan approval on 15/2/2024, settlement date is 8/3/2024.

Last credit card was closed on 2/1/2024, I checked my credit score on commbank, it's currently 836 with a credit check for home loan on 11/1/2024 (in credit application area, not in credit account area).

I do get ANZ first home buyer cashback and first home owner grant, but as a regular churner I don't want to miss the bonus for my upcoming big spending, so how soon can I apply for a new credit card?

Thank you and happy Friday.

Financial Credit Card Home Loan

Comments

  • Duckie2hh on 16/02/2024 - 10:18
    +5

    As long as you have the borrowing capacity, the period of time does not matter.

    • RTY on 16/02/2024 - 12:00

      But my loan is not in use yet, should I disclose the loan on cc application?

      • Mulga Bill on 16/02/2024 - 12:16
        +5

        they will see the inquiry on your credit report and should include it as "change in future circumstances"

  • Mulga Bill on 16/02/2024 - 12:03
    +3

    some banks have auto approved credit cards if the home loan with them was approved within 60 days if that helps?

    • Koulie on 16/02/2024 - 12:20

      CBA has this also - OP ask your lender if there was any conditionally approved credit card with your home loan application prior to submitting a new one.

      • RTY on 16/02/2024 - 12:52
        +1

        The loan is from ANZ and I've churned all the good ANZ cards already

        • DustyAfternoon on 16/02/2024 - 16:27

          I’m in the same boat as you.

          I’m not sure what the impacts of having a 10% LVR will be on the credit card churn, though.

          • miwahni on 17/02/2024 - 01:24

            @DustyAfternoon: Home loan LVR won't affect affordability, which is what your CC approval will be based on.

            • DustyAfternoon on 17/02/2024 - 14:30

              @miwahni: So it’s just the mortgage payment that matters?

              • miwahni on 17/02/2024 - 23:32

                @DustyAfternoon: Usually the loan amount rather than the actual repayment - sounds weird but when assessing the impact on servicing, the loan amount has a particular interest rate applied which is usually 3% higher than the SVR, and repayment calculated that way. So even if your home loan has a year remaining on an ultra low fixed rate, the repayment used for servicing in the credit card app will be calculated on around 8.5% - 9%.
                But whether that loan amount represents 90% of your property value or 50% won't make a difference to the credit card application.

  • ddhar on 16/02/2024 - 15:57

    I applied for a new credit card a week after getting unconditional approval for home loan. No issues but this was for a $6k limit card. Hardly a significant change in financial circumstances.

  • RTY on 16/02/2024 - 17:24

    Just asked my broker when I signed the paperwork for the home loan. She said I should apply after 8/3 just to be safe

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