TransUnion

Consumers Applying for a Mortgage Up to Three Times as Likely to Open New Credit Cards and Auto Loans

Many of these consumers open these accounts as soon as one month after their existing mortgage payoff.

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Likelihood of Prime or Better Consumers with a Mortgage Inquiry to Open a Credit Card or Auto Loan in the Next 12 Months

Three in four consumers are concerned about increased costs
Three in four consumers are concerned about increased costs
%

All consumers

%

Consumers with a Mortgage Inquiry

Three in four consumers are concerned about increased costs
%

All consumers

%

Consumers with a Mortgage Inquiry

Credit Card Spend Surprisingly Rises Prior to Mortgage Closing

For existing mortgage borrowers who move or refinance, 71% of all mortgage inquiries occur between 30 and 90 days prior to existing mortgage payoff and new mortgage origination. In this timeframe, consumers who are preparing to originate a new mortgage change their credit card spending and balance behaviors.

Bankcard spend spikes in the month before payoff for consumers who moved with a new mortgage, and trails off after payoff

Bankcard balances generally trended up prior to the payoff data for consumers who moved.

An even greater spending spike is observed for consumers who refinanced, while spending remains elevated after payoff

Refinancing consumers also saw bankcard balance build prior to payoff, with balances continuing to grow after payoff.

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