Take Advantage of Your Credit Cards to create Lower Interest Rates or a higher loans

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Take Advantage of Your Credit Cards


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When you apply for a mortgage, the lender assumes that you have maxed out all your credit cards - even if your cards have no balances. If you have $10,000 worth of credit cards with no balances, the lender still evaluates your mortgage application as though you have $10,000 in credit card debt. It seems like the lender punishes responsible borrowers, but you can turn this situation to your advantage.

You can purposefully max out your credit cards with cash advances. Just don't spend the money!

Take cash advances on all your credit cards and put the money in the bank. Since the lender assumes that your credit cards are maxed anyway, this will not impact your chances of getting a mortgage. But, the cash that you have put in the bank shows up as an asset, which makes you less risky as a borrower. You may be approved for a higher amount or a lower interest rate.

After you secure your mortgage, you can take the cash and simply repay your credit cards, returning to your original low balances. In the end, you get a better mortgage, simply by moving your money around!