cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Cards and Rent/Mortgage

Regular Contributor

Credit Cards and Rent/Mortgage

I have been living rent/mortgage free for about a year now. While poking around the Mortgage section of this forum, I came across the term "Payment Shock" (in simple terms; going practically from having no bills at all to paying mortgage or rent and not being able to adjust your finances accordingly, thus falling behind on your obligations).     Is this something that credit card companies also take into account if I were to put "None" or "0" on the mortgage/rent portion of a credit card application? Or do they look at it as a positive thing because I have all this money available to pay for my credit card bills? I currently make about 65k.

 

Prior to 2012 I had been renting for several years, but after my apartment burned down (arson) early 2012, I moved back to my parents house "temporarily" (my mom couldn't be happier). Smiley Happy

I do pay many of the bills now that I live there, but I obviously wouldn't have a ledger to show anyone because I don't pay actual rent...

6 REPLIES
Moderator

Re: Credit Cards and Rent/Mortgage

Payment shock is very mortgage specific actually.  CC's don't worry about this at all to my knowledge; however, be aware they may impute some rent calculation for you when figuring out the Credit Limit they intend to offer.

 

I wouldn't worry about it though, it won't affect your approval changes much if at all, and it might even be a small benefit, namely more disposable income available if they don't impute the rent number.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Regular Contributor

Re: Credit Cards and Rent/Mortgage

Thanks - That's what I thought. It looks like there are quite a bit of people out there that are almost straight out of college with fairly high credit limits.

Established Contributor

Re: Credit Cards and Rent/Mortgage

When requesting a cli for my wife on a cc of hers, the issuing company would not allow her to put zero for rent or mortage even though that is accurate and truthfull. They also would not let her put a phantom amount in there either. It had to be realistic to the comparable rents where we live.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico)XP 735 (FAKO)
Updated scores 05/01/17 EQ 824, TU 812 EXP 810 (all Fico scores) Remember the Three P's: Pay early in Full, Pay on Time, Patience
Regular Contributor

Re: Credit Cards and Rent/Mortgage

And then in the bottom of the application there is a long legal jargon in super small font saying that by signing above, you're attesting that all information provided is true and accurate. Otherwise we can sue you and your dog for everything you own. 

 

I guess the FICO system isn't the only mystery we're dealing with here... 

Valued Contributor

Re: Credit Cards and Rent/Mortgage

Yes I agree with everyone else. It is mortgage specific. They could consider it but I don't think credit card companies do in most instances. Now on another note, the denials for the CSP seem to point to insufficiency of managing at least a $5,000 limit. This could be looked at as "potential payment shock" that Chase is evaluating.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Established Contributor

Re: Credit Cards and Rent/Mortgage

In the last six or seven years my wife and I applied for several CC's (Citi, PenFed, GE, Amex) and always put $0 for rent and mortgage (which is true) and never a question or a problem.

Amex BCE $11.1 / Citi Diamond Preferred WMC $12K / Citi Double Cash WMC $3.8K / Comenity Total Rewards Visa $2.5K / Citi Home Depot $5K / AU- Amex BCP $12K / Chase Freedom Visa $11014.00 / PenFed Platinum Rewards Visa Signature $6K / GE Lowes $10K
myFico Scores on 10/03/2014
Eq 798 / Exp 811 / Trans 814
CCT Fico 08 on 1/3/16 - Trans 786 / Exp 793 / Eq 797