Consolidating debt - Effect on credit rating?

MoneyWorries2014

Hi
I have 2 credit cards (£6000 in one, £3000 in another one). I can put £300 a month in total to repay them.
I am going to call each card first to see if I can get a 0% deal for a a limited tim . If not, I was looking at a 0% card to transfer my debt there. Otherwise the bank offers me a loan at 4%.
We are buying a house next year, and I'm a bit scared of taking a loan in case it affects my credit score. What is the option that would less impact my credit score?.
Thanks

[Deleted User]

Ignore your credit score. No one sees it and it has little meaning.

Applying for a loan will result in a search on your file. Getting the loan will increase your debt and available balance. Assuming you pay off the cards, your indebtedness will return to its original level.

When you apply for a mortgage, lenders will be looking at the amount you owe, along with your credit history and other details.

Depending on your income, you may struggle to get a sizeable loan with 9k of existing debt.

MoneyWorries2014

Thanks for the answer. Yes, I would use the loan to pay off the cards. I earn 48K.
A loan would be worst case scenario in case my current credit cards don't give me a reduced interest deal.

glentoran99

Be wary of asking for a deal, they could put you on an arrangement to pay, which would affect your chances of a mortgage, also as many on here will testify, Consolidation rarely works, your inclined to run up the card debt again and end up with double the debt

MoneyWorries2014

What would the best option be? I can keep going, topping up whenever I can, but I would like to reduce the interest to clear it quicker. If asking for a reduced interest fee and having a loan are not a good idea, what else can I do?

[Deleted User]

I'd look at a BT card as a first option.

YorkshireBoy

Another option, if you have sufficient headroom, may be shuffling the debt between your existing providers if they can offer 0% deals on BTs.

On a secondary note, only £300 available to service the debts out of a £48K annual income would suggest some quite serious financial commitments elsewhere. These would obviously be taken into account if applying for loans or credit cards.

MoneyWorries2014

Thanks YorkshireBoy, I think that would be a good option - I didn't think of that. Yes, the reasons are London rental and childcare. From next year, once childcare isn't needed anymore, I will have more money to put towards my debt.

Gaz83

£48k income and can only put £300 a month to repay?