“The Effect of Large Credit Card Charges”

   “The Effect of Large Credit Card Charges”




Hi Joe,

Hope all is well! We wanted to touch base with you to obtain some guidance. We have been planning on purchasing a new bed for before we get married and plan to spend around $2,000. Now that we have a pre-qualification, we want to be sure to make the right moves financially. Will this type of purchase affect the pre-qualification and should we wait until we can pay cash for the bed? Is it better to put the purchase on an existing credit card and make payments accordingly or could we open a new credit card from the place of purchase if there is a “no interest for x amount of time”

Thank you so much for all of your help!



We give all clients very clear instructions about not making large charges on credit cards once a mortgage application is in process. When credit card debts increase, the monthly payment increases which can change debt ratios. If the ratios are already “tight”, even a slight increase can be a problem.

Fortunately for these folks they are wise enough to ask the question and in this case, this kind of charge literally has very little effect on their debt ratio.

The best advice if someone isn’t sure, always ask your mortgage professional.


Imagecourtesyof StuartMiles/Freedigitalphotos.net

Subscribe to my blog via Email:


Enter your email address:

Delivered by FeedBurner


Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



Like me on facebookfollow me on twitterConnect with me on linkedin

Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 9 commentsJoe Petrowsky • April 06 2017 01:10PM


Joe, great advice for all loan application's to follow.  Ratios are critical in the loan process. 

Posted by Frank Rubi, FrankRubiRealEstate.com (Frank Rubi Real Estate, LLC) about 2 years ago

And I'm sure so many borrowers do NOT ask. I had one buyer who bought a very expensive car the same day as getting pre-approved. Luckily they were able to work it all out, but that was a tough purchase to rectify.

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) about 2 years ago

Good advice, Joe. It's difficult to watch a buyer lose a home because they made a purchase for new appliances or furniture right before closing.

Posted by Nathan Gesner, Broker / Property Manager (American West Realty and Management) about 2 years ago

Furniture is the easiest credit to get and for many the temptation is to secure it before closing. Furniture stores are the first to the courthouse types. 

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) about 2 years ago

Good morning Joe. What a smart consumer. Better to ask than to crew things up needlessly.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) about 2 years ago

Joe, this is one of the many pitfalls buyers will succumb to and you are fortunate that this buyer consulted you first before moving forward with her large purchase/debt.

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Geneva Financial, Llc.) about 2 years ago

Every conversation between prospects and real estate professionals should start with:  "If you're even thinking about buying a house DON'T incur any more debt for anything"!

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) about 2 years ago

Joe, I've been watching my credit score take a bit of a dip because we're in the midst of some home renovations.  Still paying off our balances in full every month, but they're seeing a much bigger portion of my credit being used on any given day as we charge out many of the associated expenses.  We know it'll recover quickly as soon as we're done with the work.

Posted by Liz and Bill Spear, RE/MAX Elite Warren County OH (Cincinnati/Dayton) (RE/MAX Elite 513.520.5305 www.LizTour.com) about 2 years ago

Any large purchase that can be linked to you can be a cause for concern to the lenders.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) about 2 years ago