What looks better on file?

AnnieBox

Hi everyone, hoping for some quick advice.

The only active debt I currently have is a £900 balance (Credit limit £1.5k) on a Nationwide 0% interest credit card, which is being paid by direct debit and will be cleared before it starts charging interest next year.

My partner and I are currently saving for a mortgage deposit. His credit history is crystal clear but mine had some hiccups a couple years ago so isn't as good. Obviously, I want to make myself as appealing to mortgage lenders as possible, once we're finally ready (we anticipate 6-12 months time)

Am I ok to keep the credit card balance as it is and pay it off monthly until it's cleared before the interest kicks in, or would I be better off missing one month of house savings and clearing the credit card instead?

The money isn't really a deciding factor, I just want to do whatever will look best to lenders when applying for a mortgage.

Any advice greatly appreciated

AdrenalineJunkie22

There's no difference financially in clearing your credit card now or in 12 months through DD if it's on 0%. But I would say that if you cleared it now and showed you didn't need to use it for 12 months then that would show a more stable person

CLAPTON

I would clear all debts at least 6 months before you apply for a mortgage

Tixy

Given the low balance it probably won't make a massive difference to a mortgage application.

But I would probably pay it off and then use the card for the odd payment, repaying in full the following statement.