Whats best option

thares7

Hello

Ive got 3 different debts outstanding. But 4 Credit accounts.
HSBC Flexi Loan £3971 (limit £4000)
HSBC Credit card £2290 (limit 4000)
Barclaycard £3173 (limit £7800)
MBNA £0 (limit £5700 )

What is my best bet do do to get credit file in check? Is it to put everything on one card and cancel all other credit accounts the only thing is in the next year or so i will be looking for another mortgage and dont want these things to affect.

Cheers

Paully232000

thares7 wrote: »

Hello

Ive got 3 different debts outstanding. But 4 Credit accounts.
HSBC Flexi Loan £3971 (limit £4000)
HSBC Credit card £2290 (limit 4000)
Barclaycard £3173 (limit £7800)
MBNA £0 (limit £5700 )

What is my best bet do do to get credit file in check? Is it to put everything on one card and cancel all other credit accounts the only thing is in the next year or so i will be looking for another mortgage and dont want these things to affect.

Cheers

That isn't going to help (or hinder), in my opinion. Whether it is on one card or ten, it is the total amount of debt that you currently have that is the major consideration. This along with, for example, how much you earn, other commitments (childcare, etc), previous dealings with credit accounts, will determine how much you can obtain from a mortgage company, and whether you will get a mortgage in the first place.

Of course, if you are paying interest on these accounts, then it would be in your interest to move them onto a 0% card, which, if possible, could be one card with a limit in excess of £10K.

grumbler

Paully232000 wrote: »

That isn't going to help (or hinder), in my opinion.

This can hinder as the credit limit of the new (one) card has to be at least £21.5K to maintain the same reasonably low used/available ratio.

thares7

Thank you Paully23200

Its just that i read on here that they take in consideration how much credit is avalible due companys worry that after they give you a mortgage you could also use all the avalible credit and put yourself in trouble. So i was wondering cancelling all credit card and only have one avalible?

thares7

grumbler wrote: »

This can hinder as the credit limit of the new (one) card has to be at least £21.5K to maintain the same reasonably low used/available ratio.

Hello Grumbler

I wouldnwant a card with the lowest limit possible to consolidate on one (i.e if barclaycard would up limit to £9500) my aim is to clear all credit cards and never use them again for silly things. I was young and stupid and now paying the price. Like they say ive made my bed and now im laying in it but have definatly seen the light.

Candyapple

Paully232000 wrote: »

Of course, if you are paying interest on these accounts, then it would be in your interest to move them onto a 0% card, which, if possible, could be one card with a limit in excess of £10K.

As above, if you are paying interest on them, MBNA usually offer decent 0% offers and as your MBNA card is at zero balance, you could transfer over the Barclaycard and HSBC credit card balances and close those accounts.

You would however go from £9,434 / £21,500, to £9,434 / £9,700.

chrisw99

Candyapple wrote: »

As above, if you are paying interest on them, MBNA usually offer decent 0% offers and as your MBNA card is at zero balance, you could transfer over the Barclaycard and HSBC credit card balances and close those accounts.

You would however go from £9,434 / £21,500, to £9,434 / £9,700.

There's usually a 3% fee for shifting to the 0%, so £283 fee to move the whole £9,434

Although if it's currently at 18.9% standard APR that's £150ish a month interest payable on the current balances so in the long run the fee is worth it

grumbler

thares7 wrote: »

I wouldnwant a card with the lowest limit possible to consolidate on one (i.e if barclaycard would up limit to £9500)

This makes very little sense.
Firstly, it's mainly the APR that matters, not the limit.
Secondly, by this consolidating and closing cards you can make your used/available ratio close to 100% that is bad. If you don't close, you increase the 'available credit' that isn't good either.

my aim is to clear all credit cards and never use them again for silly things.

You don't need to 'consolidate' to stop using 'for silly things'. Just stop using without 'consolidating'.

I was young and stupid and now paying the price. Like they say ive made my bed and now im laying in it but have definatly seen the light.

Have a look at my signature.