Should it be done at all? Or how long should one wait for before getting credit card when having a existing mortgage?
FYI:
- we are here in NSW
- getting credit card only to take advantage of the points and convenience in some case, not a necessity
No reason not to, unless you can’t control your spending.
Set it to be paid off in full every month, and basically use it as if it was a debit card spending your own money.
I’m with ANZ for my mortgage and a credit card came with it. We pay it off every month no matter what. We use it for everything. It’s a frequent flyer (qantas) card so we’ve racked up hundreds of thousands of points, which is now getting our international flights later this year. If you trust yourself to pay it off consistently, then they can work in your favour.
If I were to get them after the fact, is the bank for mortgage I am with monitoring if I am getting a credit card else where?
I think you are overthinking it they won’t care. If you are worried could just ask your bank.
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There is no monitoring. They don’t give a shit about what you do with your money from here on out, as long as you’re paying your debt to them.
It’s unlikely to matter much but depending on your monthly spend you might see some tiny gains over the life of the loan if the account you pay it off with is setup as an offset on the mortgage.
This seems like a strange question, not sure I’m understanding. Usually people hesitate to open extra credit lines before getting a mortgage, but if you already have that then what is the concern? Do you not already have any credit cards?
I cancelled all credit cards before taking the mortgage;
the question is more like, after the mortgage is completed, would getting any credit card considered as dishonesty and any negative impact to that
Having a credit card is great for a mortgage. Put everything on your card, then pay up when the interest free period expires.
In the meantime put everything on your home loan and redraw to pay your credit card as required.
You probably did not need to cancel those cards, and I’m surprised to hear you worry about dishonesty. What would be dishonest? You are allowed to have debt or credit with more than one company.
As long as you are honest on your income and debt declarations, go ahead and apply for the credit. If they don’t feel you could repay it, they won’t extend the credit. Those companies know everything :p
You don’t have to close it but when then calculate what you can repay, they assume you may max out all other lines of credit as well and have to repay that too, so closing a credit card (especially a large one) can add 10’s of thousands of dollars to your borrow limit.
