Loan to consolidate Credit cards

guestiee

Hi all,

I currently have 3 credit cards with around £4k on each. One of which was recently applied for to transfer some balance. I am considering to take out a loan to consolidate this debt and to help me organise it. However I am in the process of moving house and need to apply for a mortgage.

Would you suggest waiting to after we have moved to open a loan for this? Or will it not harm my credit rating too much?

Thanks.

DCFC79

The advice that's been posted before is to wait until you move, yes it might harm your credit score but your score isn't relevant with regards to lenders as they don't see it. Lenders see your history.

Caz3121

guestiee wrote: »

I currently have 3 credit cards with around £4k on each. One of which was recently applied for to transfer some balance.
If you have recently paid a balance transfer fee to get it to 0%...why would you look to move this to a loan and pay interest?
Also from the lenders perspective, there is no guarantee that you would use the loan to pay off the cards so £12k cards + £12k loan would give you £24k debt so would need a salary of over £48k to support


I am considering to take out a loan to consolidate this debt and to help me organise it.
this could cost you more in the long run, as above. Have you run your debts through the snowball calculator to see which you should be paying down quickest? Do you have direct debits set up to help you "organise"?


However I am in the process of moving house and need to apply for a mortgage.

I would not take any new debt before moving. How much is your deposit? is there an option to pay down the debt with some of your deposit?
note that debt will affect the amount you will be able to borrow