A good credit history can help you get a mortgage, but maxed-out credit cards can hurt your chances, Mendoza said. That's because lenders are weighing two big factors to determine if you can make your mortgage payment: Your credit utilization ratio and debt-to-income ratio.

While it is technically possible to buy a house with a maxed-out credit card, it is significantly more difficult because of how lenders calculate your Debt-to-Income (DTI) ratio and credit score. In 2026, mortgage lenders typically look for a DTI below 43%, and a maxed-out card significantly increases your monthly debt obligations, which reduces the total loan amount you can qualify for. Furthermore, high credit utilization (using nearly 100% of your limit) can slash your credit score by 50 to 100 points, potentially pushing you into a higher interest rate bracket or causing an outright loan denial. Even if you have a high income, lenders view maxed-out credit as a "red flag" for financial instability. If you are planning to buy, the standard advice is to pay down your balances to below 30% of your limit at least three to six months before applying to ensure your score and DTI are in the best possible shape for a favorable mortgage approval.