Paying off credit card/overdraft

dazedconfused77

Hi - my partner and I are looking to move house at some point this year. We would be second-time buyers - we have lived in our current house for 7 and a half years and have circa just over £50,000 equity. When we move, we will be looking to buy a house around £200-£225k - we'll be using the equity in our current house as deposit.

I currently owe £1,600 on credit card, which all being well I will have paid off by the start of July. This is the only credit commitment I have (other than £30 p/m phone payment). I currently take home just over £1,900 p/m.

We'll be looking to buy a house whenever one comes up that we like, but realistically probably looking at late summer/early autumn. I'm keen to pay the CC off as quickly as possible (to get the balance off my credit report etc), and wondered if dipping into my overdraft to pay this off a month earlier (so by start of June) is a good idea?

I have a £500 overdraft, so by going £2-300 into in for the next couple of months I could clear the CC balance. But I know a lot of banks will ask for three months' bank statements so if they see this use of overdraft, that will probably ring alarm bells won't it? Is it best just to pay off the CC as soon as possible without using a second source of debt? I'm guessing this is the case but just wanted a second opinion!

Savings have been used recently for other items so don't have them to hand to pay off the balance - will be rebuilding them as soon as the CC is paid off!

[Deleted User]

I would keep the credit card debt in favour of your overdraft.

Bristol80

If you!!!8217;re maintaining your minimum payment on the credit card it!!!8217;ll cause you no issue at all. I can!!!8217;t see any benefit in using your overdraft to clear it quicker.

maurice28

Thanks both, that makes sense!

GoingOn30

Are you paying interest on the credit card or is it in an interest free period?