Credit Card or Overdraft?

opensesame

Hello all,

I am moving into a reasonably good financial position, with a well-paid job (pushing £45,000 pa) and extra income from freelancing work. I should thus be able to move out of long-standing credit card and overdraft debts, which while not large are not small either (in the region of 1,500 each), during the course of the next 12 months or so.

I'm wondering, from a credit rating point of view, which is best to pay off first? With a view to getting a mortgage in the medium-term future, which do you think lenders will view as better - being in credit on my bank account or having no credit card debt?

Thanks!

Debtslayer

Pay off Overdraft first. Use of an overdraft is always frowned upon more I would say than credit card debt. Use of an overdraft shows you cannot live within your means
Although I would suggest to clear both before looking for a mortgage, you need to show you are good with credit and pay back debts