Pay off credit card before mortgage application?

jdavtz

I have 3.5k on a M&S 0% card that expires next month. I can transfer to an existing Barclaycard (8k limit, 5k available, 3k sitting at 0%) at 0% for 9 months with a 2.9% fee (i.e. about 4% APR). Or I could repay it. Either way I'd close the M&S card.

I'll be applying for a mortgage very soon - any suggestions if any option is better than the others?

[1] 6.5k/8k used, i.e. more credit in use, less "available credit" and an extra 3k available for me to use in my deposit (I'll easily clear that in the 9 months "interest free" period).

[2] 3k/8k used, i.e. more "available credit" but less credit in use.

[3] Repay both credit cards in full and have less cash available for deposit.

Dave_Ham

It depends if affordability is tight, but I would be looking to keep on 0% and pay off as planned.

If you close card, it will appear you are utilising a high propensity of available credit and will not help a credit score with many lenders..

Hope this helps.