We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Credit cards
paulport
Posts: 4 Newbie
I have 2 credit cards;
Virgin (7000K limit) - £2400 balance
Barclaycard (5000K limit) - £1000 balance
We are obviously trying to reduce the debt as quick as we can. However, prior to applying for a mortgage is it worthwhile transferring the debt onto 1 of the cards (interest free for 12 months) and cancelling the other card?
There seems to be conflicting advice on numerous different websites. Has anyone experience of this? Or, are there any brokers who could offer advice?
Regards and thanks in advance.
Virgin (7000K limit) - £2400 balance
Barclaycard (5000K limit) - £1000 balance
We are obviously trying to reduce the debt as quick as we can. However, prior to applying for a mortgage is it worthwhile transferring the debt onto 1 of the cards (interest free for 12 months) and cancelling the other card?
There seems to be conflicting advice on numerous different websites. Has anyone experience of this? Or, are there any brokers who could offer advice?
Regards and thanks in advance.
0
Comments
-
Reducing the overall available credit is sensible. £12m does seem a bit high
0 -
Interest rate won't matter to a lender. They will take a percentage of the balance as a monthly commitment, typically between 3 and 5%.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
-
Thanks for your replies. If i do transfer and cancel a card my debt utilisation ratio will increase to over 40%. How would a lender view this bearing mind I read that they prefer debt utilisation ratio levels to be around 25%.
Thanks in advance0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards