Knowledge Centre

Credit card use is down - which may aid property buyers

30/09/2025

Consumers are reducing their reliance on credit cards – the number of personal credit cards in circulation in July was 1.7% lower than the year before, while the amount of credit card debt attracting interest was 0.4% lower, according to the Reserve Bank of Australia. This reduction in credit card use is not only strengthening people's finances, but also their home loan applications.

That’s because while it’s certainly possible to get a mortgage if you have a credit card, lenders tend to look more favourably on borrowers who either have lower credit limits or no credit cards at all.

Why reduced credit card use can help your home loan application:

• Safer profile - The less debt you have, the less risky you seem to lenders.
• More borrowing power - Fewer cards and lower limits mean banks are willing to lend you more.
• Easier to manage - With less plastic, it’s simpler to stay on top of your money.

If you’re thinking about applying for a home loan, contact us for guidance on how to manage your credit cards and strengthen your creditworthiness.