Order to pay things off in?

wiggly

I'm currently hoping to buy a house and as such want to make sure my finances are as good as possible (well, for a DFW anyway )

I have approx £800 coming to me as soon as a cheque clears, in what order should I clear things to make it look better?

I was trying to delete the loan but maybe the OD and CC are more important?

Any advice?

SunderlandBlackCat

The general rule of thumb is to pay off the highest APR first but there are things you need to check first such as whether there are penalties for paying the loan off early. You need to check the Ts & Cs of the loan.

wiggly

nah the loan doesn't have any clauses in it, I've checked before

so it would be CC, then loan, then OD I assume? Wouldn't it look better if I didn't have a negative balance on my current account? I don't go over my OD limit (£500) but I always use it

deb_buffy

We have just started buying a house, and we paid our CC off thinking this would do us good in the eyes of the mortgage people but it didnt make a dent. they didnt even care we have an OD it was the sofa loan that was the problem if the loan has less then 12 months they dont count it. if its over 12 months it can change what they lend you. hope this is helpful

SunderlandBlackCat

My overdraft doesn't even show up on my credit report. The loans I had & my credit cards both past & present do show up.

wiggly

ah right cool thanks

Lara44

Hi wiggly

Why don't you use the snowball to work out which order to pay the debts off at - the highest apr:

http://us.whatsthecost.com/snowball.aspx

It will also give you a debt free date!