How does a corporate credit card affect loan application

[Hosko]

Hi,
I have a company issued corporate credit card. Unfortunately I am liable for the payments, so I'm guessing this counts against the serviceability of a home loan.
The company pays the money to me before the money is due to be paid to Citibank (where the corporate card is held). The card has a limit of $25k for business purposes, and although this could potentially be reduced to $20k that to me is here nor there.
Haven't had this issue before but it has been picked up by current bank in statements as a regular payment to Citibank.
Sorry for long winded post. Does this get taken into account with any loan applications given that it is just transferring through my bank account in essence?
Any ideas would be helpful?

 

[Aaron_C]

It shouldn't count if it is the company one. I am guessing you are trying to go with CBA for a loan? Does the $25k credit card kill the servicing?

 

[Hosko]

Nope WBC. And Yep, I'm guessing it will kill the servicing

 

[Colin Rice]

Show the paper-trail of money as a mitigant to prove you don't pay it, your employer does.

Worst case scenario it will be 3% per month or $750 deducted from your surplus income.

 

[Aaron_C]

Nope WBC. And Yep, I'm guessing it will kill the servicing

You're guessing??? Can't your broker/banker tell you?

 

[Colin Rice]

A letter from your employer explaining the arrangment should do the trick as well.

 

[Hosko]

You're guessing??? Can't your broker/banker tell you?

Yes it kills it at $25k, guessing the same result even at $20k.

 

[Aaron_C]

Yes it kills it at $25k, guessing the same result even at $20k.

Yes this is the problem with going to the same bank you do all your transactional banking with.....all your dirty laundry comes out even though there is a logical explanation.

As Colin said try to get a letter from your employer explaining it. Otherwise just change bank...

 

[Corey Batt]

Letter from the employer explaining it.

One annoying thing happens is when the accounts dept. within a company doesnt make payment on the card, this can hit your file.

 

[jonmardell]

Hi,
I have a company issued corporate credit card. Unfortunately I am liable for the payments, so I'm guessing this counts against the serviceability of a home loan.
The company pays the money to me before the money is due to be paid to Citibank (where the corporate card is held). The card has a limit of $25k for business purposes, and although this could potentially be reduced to $20k that to me is here nor there.
Haven't had this issue before but it has been picked up by current bank in statements as a regular payment to Citibank.
Sorry for long winded post. Does this get taken into account with any loan applications given that it is just transferring through my bank account in essence?
Any ideas would be helpful?

I assume the money you receive from your employer for the card you are not using as income to service the loan? As others have said a letter from your employer should work but if they are digging their heals in then go to almost any other lender as they will not require the transaction statements. Except stay away from CBA as they require transactions statements from all you transaction accounts which will show up the payment again!

 

[Hosko]

Thanks for all your enlightened responses. I'll head to employer today for a letter.
And Jon, not using the money as income to service the loan. Wish I had thought of that gem!