Best approach to order my finances, get loan without affecting my credit rating

gregory787

Hello Fellows,

I am willing to get a single load for my house refurbishment.

I have got two credit cards opened:
- GBP 5500 limit (4.500 to pay)
- GBP 2200 limit (1100 to pay)
and one credit: GBP 3000 limit and 1400 to pay + overdraft of GBP 700.

Today I paid them all (everything: including credit and overdraft) with my savings from another account. I don't plan to use these two credit cards anymore.

Should I close them, decrease their limits or leave as they are to be able to take a single loan for larger amount with increased chance of acceptance?

My Experian rating is 963. Without these paid I had 80% chance of acceptance according to Experian.

Could you please share your opinion with me?

[Deleted User]

Keep at least a couple and use them regularly to maintain credit history.

Ignore your credit score.

When you come to apply for a loan, consider your income against the amount you are looking for.

gregory787

Thank you for your response.
I intend that the loan amount would be 8x monthly netto income paid over 5 years.

[Deleted User]

How does that compare to your gross income?

gregory787

The load amount would be 50% of my annual gross income (paid over 5 years).

I am just worried that 'available credit` on credit cards (even if are paid) will decrease my total, potential credit capacity.

[Deleted User]

Not significantly. It would be more dangerous if lenders were to see that your other accounts had suddenly been closed. Your limits are also quite low.

However, the loan you're looking for is a fairly large amount on your income. That'll be the biggest hurdle.