Mortgage application and cashback credit card

MissE001

I'm looking to apply for a new mortgage soon as I'm hoping to move house in the next few months. Just tidying up finances in preparation....I currently have a cashback credit card which I use to pay for just about everything I buy and pay off in full every month.

My question is, should I stop using the credit card so there will be no balance on it when I do my mortgage application or is it the fact that I have access to the credit regardless of whether I'm using it that mortgage applications are based on?

Thanks

kingstreet

Using a credit card and paying it off in full each month, costs you nothing and scores you points on the lender's scorecard. It would only be an issue if you had a lot of unused credit and then only with the Yorkshire Building Society Group members, it appears.

As long as you tick the "will be repaid on, or before, completion" box when you apply, the balance at the time will be ignored with practically every lender.

MissE001

That's great, thanks kingstreet. I have 2 credit cards with zero balances on - Santander 123 and Tesco. Think I'll cancel the Tesco one...I'll start using the Santander one when the 5% cashback on the other one reduces in a few weeks

swanny78

MissE001 wrote: »

That's great, thanks kingstreet. I have 2 credit cards with zero balances on - Santander 123 and Tesco. Think I'll cancel the Tesco one...I'll start using the Santander one when the 5% cashback on the other one reduces in a few weeks

Experian measure amount of avaialable credit as a positive thing as long as its been running a few months and not utilised too much (ie you doint heavily rely on credit). So cancelling the Tesco card might not be a good idea as it will go towards available credit if not used but open. Worth cinsidering anyway but maybe cancel when you get your mortgage.

MissE001

Wish I'd seen this reply before I wrote to Tesco