trying to improve my CC situation for a improved credit score

mstar

i am trying to buy a second home (i live with my wife in a mortgaged home). i am trying to cut down on my credit available.
I have cleared 1 CC (awaiting it to be zero balance) i had a few questions somebody maybe able to help?

1. how quick from cancelling my CC can i tell my mortgage broker to apply for my mortgage in principle (so they can do Credit check etc)
2. I have a joint current account with my wife. My wife has 2 other bank account and 1 bank account she hardly uses but occiaionally goes in OD as she forgets to top it up by going to the bank when at work. will this hurt my application??
3. My wife doesn't have a CC and therefore no bills on her name as well, to prop her credit score
is it wise to get her a cc with low limit just to spend a bit and pay off in full?

I now only have 1 cc with 15k limit and i have used 7,200k which i am paying off £200 a month.

Anybody help in answering my Questions?

YorkshireBoy

1) In my experience it'll take anywhere from 1 (usually) to 3 (for LTSB!!) months for the zero balance/settled status to appear on your CRA files. If you're concerned about affordability issues, it may be best to order your £2 statutory reports and then, because they're valid for queries on existing accounts for around 90 days, keep calling them for updates before making the mortgage application.

2) Wouldn't think so, as long as she was using an authorised overdraft.

3) Probably, to increase her credit rating in general, although it shouldn't affect the mortgage application.

Re the £7,200 credit card debt. It's likely the mortgage provider will reduce your salary by 36% (12 months of 3% minimum payments) of this, ie £2,600, before applying their lending multiples...if that's a problem?

mstar

thanks

1. mine is MBNA so it take 3 months to appear on my record? so i should delay any house purchase until then?
2. yes she is within her authorised OD (intrest free)
3. Ok maybe bad idea to start applying right now but i have a credit card can i make that a joint card? will that up her score as she have her own card but will come out of the account credit limit of 15k?
(i am thinking rather then applying to new CCs)

also switching bills to her name does that effect anything??

YorkshireBoy

1. MBNA are quick to update balances in my experience. Never closed an account with them though so can't help on the settled status issue (but that shouldn't matter as mortgage providers will be more interested in actual debt than available credit). Up to you when you apply, but put yourself in the best position first!

2. That's good then.

3. Making her a secondary cardholder on your account will do nothing at all for her credit rating, since it's you who will be solely liable for any debt placed on the card.


Switching some bills to her name (or making them joint) will help with ID issues, but probably not with credit history/rating.