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Old May 12, 2024 | 2:02 am
  #16  
nzkarit
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Originally Posted by JamesBigglesworth
That's NOT how credit lines work with mortgage applications.

Lenders *want* to see credit lines because credit lines *INCREASE* your credit score. They want to see the lines in place AND NOT USED or with very low utilisation levels. Most credit score systems (And ALL the American ones, which make up the two major ones used in NZ) regard under 5% utlisation as ideal. Your credit score *increases* the more unused credit you have.
In the US maybe. Elsewhere credit scores work differently. When actually having a mortgage the bank may want to control your other lines of credit to minimise the risk of you defaulting.
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