How Much Does a Credit Card Affect Your Ability to Borrow?

Credit cards are a common pitfall for first home buyers. Mortgage Lab CEO Rupert Gough takes you through exactly how much your credit card limits impact your ability to get a mortgage.

"One of the first things you need to know is the difference between a balance and a limit. You might have a limit of $10,000 and be able to borrow up to that amount. But you may never have spent more than $1,000 on your credit card.

Unfortunately, when you're applying for a mortgage, the bank has to assume the worst case scenario. And that would be you blowing out their credit card or maxing it out to its limit..."