Having credit cards for the benefit of signup bonuses may affect the amount of mortgage the bank would approve you for.
Of course if you just cancel the CCs after you have received the bonuses (don’t know how long for you need to own the CC in order to keep the bonus, I wasn’t interested at all in accumulating credit cards) I would think it should not matter for the mortgage approval. Or even better if you don’t need any mortgage at all I suppose you can have as many CCs as you wish if there is no annual fee, that’s it .
I ‘dicovered’ this while I was looking for a mortgage and I came across this page ‘How Much Home Can I Afford?’.
It is for a Canadian bank but I have a feeling the US banks work the same (at least now after they have been burned badly with the subprime).
and the result:
That’s a huge drop from $500K to $379K.
Now it is much better.
It does not make any difference.
I have played around with other combinations
1 Credit Card - 10K limit + 1 Credit Card – 5K limit: $500K maximum purchase price (same as no CC or 1 CC with a 10k limit)
1 CC-10K + 1 CC – 7K: $492K max.
1 CC – 10K + 1 CC – 10K: $477K max.
1 CC – 10K + 1CC – 5K + 1CC – 3k: $487K max.
1 CC – 10K+ 1CC – 5K + 1CC – 5K: $477K max
So owning too many credit cards may affect the mortgage you can get. Of course, this is only an online tool and more complex calculations are involved when the bank really determines how much they can approve you for.