Store Cards Mortgage Eligibility: How They Affect Your Approval Chances
Store cards are a common form of revolving credit, often used for retail discounts, interest-free offers or loyalty rewards. While convenient, many applicants worry that having store cards — or carrying balances on them — may harm their chances of securing a mortgage.
Lenders do check the presence, usage and repayment history of all credit accounts, including store cards. But the impact depends heavily on how the cards are managed.
This guide explains how lenders assess store cards mortgage eligibility, how accounts appear on your credit reports and what factors influence a mortgage decision. This article provides general information only and does not offer regulated mortgage advice.
Do Store Cards Affect Your Ability to Get a Mortgage?
Yes — but not necessarily negatively.
Store cards are treated similarly to credit cards. Their impact depends on:
- Repayment history
- Credit limits
- How much of the limit is used
- Whether payments have been missed
- How many store cards you hold
- Recent spending and balance patterns
A well-managed store card may even help build your credit profile. Poorly managed accounts, however, can reduce lender confidence.
How Store Cards Appear on Your Credit File
Store cards show the same information as traditional credit cards, including:
- Credit limit
- Balance
- Opening date
- Payment history
- Missed or late payments
- Default status
- Length of account history
- Utilisation percentage
Lenders use this information to assess financial behaviour and affordability.
What Lenders Really Look At
When assessing store cards mortgage eligibility, lenders consider several key factors.
1. Payment History
The most important factor.
Lenders review whether payments have:
- Always been on time
- Been late
- Fallen into arrears
- Led to defaults
Even one missed payment in the last 12 months may reduce lender choice.
2. Credit Utilisation
Store cards often have relatively low limits, so balances can appear proportionally high.
Example:
£400 balance on a £500 limit = 80% utilisation
This suggests high reliance on revolving credit.
High utilisation may reduce credit strength, especially if repeated across multiple accounts.
3. Number of Store Cards
Having several store cards is not usually a problem, but lenders may look closely if:
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- Cards were opened recently
- There is a pattern of frequent credit-seeking
- Balances are carried across all cards
- Utilisation is high across multiple accounts
Having one or two long-standing, well-managed store cards is generally fine.
4. Recent Behaviour
Recent conduct carries more weight than older patterns.
Lenders examine:
- Use within the last 3–6 months
- Whether balances are rising
- Whether minimum payments are being made consistently
- Whether spending looks impulsive or predictable
Stability is key.
5. Affordability Impact
Even small store card payments affect affordability calculations.
Lenders factor in:
- Minimum monthly payments
- Any promotions ending soon (e.g., 0% periods)
- Whether repayments strain the monthly budget
Large store card balances can limit maximum borrowing.
6. Bank Statement Conduct
Even if store card behaviour is not poor on your credit file, underwriters may see:
- Repayments coming from an overdraft
- Irregular payment dates
- Returned payments
- High discretionary retail spending
Statements must support responsible financial behaviour.
Will Store Cards Reduce Mortgage Approval Chances?
Store cards usually only reduce approval prospects when:
- Payments have been missed
- Balances are consistently high
- Several cards were opened recently
- Credit utilisation is above 75–100%
- Affordability is tight due to high repayments
- Bank statements show concerning spending patterns
If payments are up to date and balances are manageable, most lenders are comfortable with applicants using store cards.
How Store Card Defaults Affect Mortgage Eligibility
A defaulted store card is considered adverse credit. Lenders will look at:
- Default date
- Whether it is settled
- Default value
- Other credit issues
- Time elapsed since the default
Defaults have a strong impact within 1–3 years but reduce in significance as they age.
High Street vs Specialist Lender Approach
High Street Lenders
More likely to accept applications where:
- Store cards are well-managed
- Utilisation is moderate
- No missed payments are present
- Affordability is strong
They may be cautious if:
- Payments were missed in the last 6–12 months
- Multiple cards were opened recently
- Balances are high
- Statements show irregular spending patterns
Specialist Lenders
More flexible when:
- Store card arrears exist
- Utilisation is high
- Income is variable
- Older adverse credit is present
Rates may differ but criteria are often more accommodating.
Does Closing Store Cards Help?
Closing store cards may:
- Reduce total available credit
- Increase utilisation on remaining cards
- Shorten your credit history
- Remove evidence of long-term positive repayment behaviour
Lenders are not usually concerned by having open, unused store cards. Many applicants keep older accounts open for stability.
Closing accounts is a general consideration only; it is not regulated advice.
Common Scenarios and Likely Outcomes
Scenario 1: One store card, low balance, paid on time
Most lenders will consider without issue.
Scenario 2: Two store cards with high utilisation
Approval still possible, but some lenders may reduce maximum borrowing.
Scenario 3: Several cards opened in the last three months
May raise concerns about credit-seeking behaviour.
Scenario 4: A store card missed payment last year
Some lenders may accept, especially with strong bank statements.
Scenario 5: Store card default two years ago
Likely to require specialist lenders; impact reduces with age.
How to Strengthen Your Mortgage Application
(General Information Only)
Applicants often choose to:
1. Reduce store card balances
Lower utilisation appears more stable to lenders.
2. Ensure all payments are up to date
Recent missed payments weigh heavily in underwriting.
3. Avoid opening new store cards before applying
Reduces perceived credit-seeking behaviour.
4. Maintain consistent bank statement behaviour
Lenders want predictability.
5. Build a stronger deposit
A larger deposit opens more lender options.
6. Check credit reports
Ensure store card data is accurate across all agencies.
Summary
A store cards mortgage eligibility assessment is rarely about the store cards themselves. Lenders mainly look at:
- How payments are managed
- How high the balances are
- Whether cards indicate financial pressure
- Affordability and income stability
- Bank statement behaviour
Well-managed store cards do not usually prevent mortgage approval. Problems arise only when repayment issues, high utilisation or erratic spending patterns are visible.
This article provides general information only. For personalised guidance, regulated advice is required.
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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.