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Is it best not to use credit cards at all before mortgage application?
Alarae
Posts: 356 Forumite
in Credit cards
My partner and I are looking to get a house next year. He has no debts, just puts his petrol on his card each month and then repays it once he is paid so he had some kind of credit history.
I have a couple of cashback cards I use and repay in full each month. Typically all spends for the house and anything my partner wants online is paid via my cashback cards and then repaid in full each month.
My bank statements only show my wage and then it coming out again as I transfer it to my savings, where all bills (credit payments) are then paid from. It looks like I carry a heavy balance each month but this is only because it is for two people- it has always been repaid.
In addition to this I have a 0% card I took out for my sister, which she is paying off at £100 a month. There is around £1500 left.
It was my plan to pay off all my cards in January, including the 0% and not use them until we find a house and apply for a mortgage.
My question is that would I be able to still spend on my cashback cards and pay off in full each month, or would it be best to not use them at all? (My Clarity has £300 spent on per month for the £5 reward and my Amex gets all spend above this).
Not using my cards doesn't really bother me but if I could make a little extra without it affecting affordability on a mortgage then that would be a bonus.
I have a couple of cashback cards I use and repay in full each month. Typically all spends for the house and anything my partner wants online is paid via my cashback cards and then repaid in full each month.
My bank statements only show my wage and then it coming out again as I transfer it to my savings, where all bills (credit payments) are then paid from. It looks like I carry a heavy balance each month but this is only because it is for two people- it has always been repaid.
In addition to this I have a 0% card I took out for my sister, which she is paying off at £100 a month. There is around £1500 left.
It was my plan to pay off all my cards in January, including the 0% and not use them until we find a house and apply for a mortgage.
My question is that would I be able to still spend on my cashback cards and pay off in full each month, or would it be best to not use them at all? (My Clarity has £300 spent on per month for the £5 reward and my Amex gets all spend above this).
Not using my cards doesn't really bother me but if I could make a little extra without it affecting affordability on a mortgage then that would be a bonus.
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Comments
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Carry on using them, paying off in full.0
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Deleted_User wrote: »Carry on using them, paying off in full.
This won't affect affordability or what the mortgage lender is willing to give us?
Only thing I'm concerned about is surely the credit agencies will show that I still have £300+ per month on credit (even though I pay in full) as it would be respect each month?
Would a NIL balance not be more comforting to underwriters?
I know you have given me the answer I'm just super cautious as i don't want to be the reason the mortgage amount that would be lent is lower if I could have prevented it!0 -
No - if you are paying in full, that will be fine.0
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I cant really add much other than to reiterate what other poster said. Carry on using CC for normal spend and pay In full each month.0
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