6 Spending Habits To Avoid When Applying For A Bond



When you're applying for a bond or mortgage approval, your spending habits and financial behaviour can significantly impact the creditor's decision. To increase your chances of securing bond approval, it's essential to avoid certain spending habits and financial actions that can raise red flags for lenders. Here are some spending habits to avoid:


Excessive Debt

High levels of existing debt, such as credit card balances, personal loans, or car loans, can reduce your credit score and make banks hesitant to approve your bond application. Pay down outstanding debts as much as possible before applying for a bond.

Late Payments

Consistently missing bill payments, including credit cards, utilities, or loans, can negatively impact your credit score and show lenders that you may have trouble managing your finances.

High Credit Card Balances

Maintaining high credit card balances relative to your credit limit can harm your credit utilisation ratio, which is a significant factor in your credit score. Aim to keep your credit card balances below 30% of your credit limit.

Frequent Credit Inquiries

Multiple hard inquiries on your credit report within a short period can signal to banks that you're seeking credit frequently, which may indicate financial instability. Limit applying for new credit shortly before applying for a bond.

Large Purchases or New Debt

Avoid making significant purchases or taking on new debt, such as buying a car or applying for additional loans, shortly before applying for a bond. Creditors may see this as a risk factor.

Opening New Credit Accounts

Avoid opening new credit card accounts or store credit cards shortly before applying for a bond. Each new account can reduce your credit score temporarily.


To secure bond approval, it's crucial to demonstrate responsible financial behaviour and present a stable financial profile to potential loaners. Before applying for a bond, you may want to consider consulting with a financial advisor or mortgage specialist who can help you assess your financial situation and guide you on improving your chances of approval.