Credit card balances

Taxiashy

Hi

I am now in no debt at all and have 1 satisfied ccj left which comes off in September this year.

I started to rebuild my credit approx 2 years ago by getting an aqua card £1600 limit now and a cap 1 £750 limit now. I use these cards for all my monthly expenses and they automatically get paid in full every month by direct debit.

On my credit reports it takes a snap shot of he balance before they have taken the direct debit, so it looks like I'm carrying balances and I'm not. It does however show all the payments in the expandable section and shows I have been paying them off every month, which I have been satisfied about.... Until recently when the credit score thing says I am using more of my credit and only have 50 percent available.

I don't take no notice of the rip off scores but I'm just wondering on how a future lender would see this. I am in the fortunate position of being financially comfortable now and don't need anything immediately but when the ccj comes off in sep I am looking into getting a buy to let mortgage and that's why I'm keeping an eye on credit reports. Your thoughts please.

Thrugelmir

Have you managed you mortgage properly?

Taxiashy

Thrugelmir wrote: »

Have you managed you mortgage properly?

Yes all up to date and all green statuses for the last 4 years and I only owe £9000 and it's paid off.

Thrugelmir

Then I would focus on meeting the requirements of obtaining a BTL mortgage rather than any concerns over your CRA record.

rb10

Potential lenders like to see balances on credit cards - as it shows that you are spending on the card, but making payments within the terms of the agreement.

So it's a good thing to have - provided you're not always at c. 90% of your credit limit!

Taxiashy

Thrugelmir wrote: »

Then I would focus on meeting the requirements of obtaining a BTL mortgage rather than any concerns over your CRA record.

That's precisely what I'm doing, that's why I have not applied yet till September when the last ccj drops off, and till then I'm keeping an eye on the credit report to make sure I've got the best chance of getting one whilst the house prices are still pretty cheap, but noticed this as I was checking them.

Thrugelmir

Taxiashy wrote: »

That's precisely what I'm doing, that's why I have not applied yet till September when the last ccj drops off, and till then I'm keeping an eye on the credit report to make sure I've got the best chance of getting one whilst the house prices are still pretty cheap, but noticed this as I was checking them.

BTL isn't just a question of a cheap property. It's finding one that will provide a good rental income or capital appreciation, along with finding the right tenants. BTL is a business not an investment.

Taxiashy

Thrugelmir wrote: »

BTL isn't just a question of a cheap property. It's finding one that will provide a good rental income or capital appreciation, along with finding the right tenants. BTL is a business not an investment.

I know. I have 2 successful businesses already and the buy to let is going to be let to my son and his wife. I have a large deposit and rather than hand it to them on a plate I have offered to buy one and let it to them.

Anyway I wasn't asking for advice on the buy to let market at the moment but thanks for your input.

Thrugelmir

Taxiashy wrote: »

Anyway I wasn't asking for advice on the buy to let market at the moment but thanks for your input.

No offence intended.