Revolving Credit Card Debt: The Silent Killer of Your Home Loan Dreams

• Revolving credit card balances are seen by banks as high-risk, unsecured debt with no fixed end date.
• They inflate your "fixed obligation to income ratio" (FOIR), as lenders assume a 3-5% notional monthly outgo, reducing home loan eligibility.
• High "credit utilisation ratio" (CUR) from revolving debt signals dependence on credit, weakening your credit profile for a mortgage.
• Even with a clean repayment record, revolving debt suggests expenses exceed surplus, raising concerns about long-term EMI absorption.
• Clearing revolving balances consistently for several months before applying significantly improves your home loan eligibility and lender perception.

Why It Matters: Revolving credit card debt signals financial stress, quietly derailing home loan approvals. Clear balances early.