Question by Deirdre B: Why would we be turned down for a credit card when we just passed a credit check for a mortgage refinance?
The same week my husband looked into a balance transfer credit card I started an application for a mortgage refinance to get rid of some credit card debt. My husband was turned down for the credit card now he is worried about the mortgage finance. We have had our mortgage with the same bank for 11 years. WIll there be a problem with the refinance? Like I said they alreaqdy saw our credit bureau reports and they were fine.
Answer by Gary B
Credit cards are “unsecured” — they can’t (usually) repossess anything you buy. Therefore, their rules for acceptance are different for credit cards than for mortgages.
Mortgages, on the other hand, are “secured” — you don’t pay your mortgage, they foreclose the house. Either way, the mortgage company wins.
You should be fine with the mortgage, but it was not a terribly intelligent move to try to get a credit card while trying to open a mortgage. GET the mortgage first, THEN worry about getting credit cards.
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