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A tip to increase your lending ability

When a lender assesses your ability to borrow money, one of the areas they take into account is your credit card.  Now many credit cards keep increasing your limits each year if you are a good credit risk.

Whilst this may make us feel good, the lenders have a different view.

Lenders take your limit into account as though you have fully maxed out the card, even if you pay the full balance each month.

For example, if you have a credit card with a $30,000 limit and you only need $5,000, you may have $25,000 more borrowing power if you reduce the limit.

Now this is only one very small part of the lending equation, so don’t take it as your great saviour.

Take this idea as part of your overall strategy.

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