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What should I do with credit accounts
GettingBetter_2
Posts: 9 Forumite
Hi,
I have recently been trying to get my debts down in order to apply for a mortgage. I have £5500 credit limit on a HSBC card which has a balance of £2000, I have a £2000 aqua card - balance is zero (I used this to rebuild my credit and it has an awful interest rate so I will definitely be closing this one.) and I have a Barclaycard which I transferred some of the aqua balance onto as it's 0% interest - I have £800 left to pay on this. I am planning on clearing these debts by the end of this month.
My question is should I close the HSBC card as well as aqua as it has a large limit? I've heard lenders can get nervous with large balances left open, however if I close it it will bring the average age of my accounts right down, and my credit report will report me as having a high percent of my credit in use. I don't particularly need the credit anymore.
Can anyone advise the best thing to do? If it helps I intend on applying to Santander.
I have recently been trying to get my debts down in order to apply for a mortgage. I have £5500 credit limit on a HSBC card which has a balance of £2000, I have a £2000 aqua card - balance is zero (I used this to rebuild my credit and it has an awful interest rate so I will definitely be closing this one.) and I have a Barclaycard which I transferred some of the aqua balance onto as it's 0% interest - I have £800 left to pay on this. I am planning on clearing these debts by the end of this month.
My question is should I close the HSBC card as well as aqua as it has a large limit? I've heard lenders can get nervous with large balances left open, however if I close it it will bring the average age of my accounts right down, and my credit report will report me as having a high percent of my credit in use. I don't particularly need the credit anymore.
Can anyone advise the best thing to do? If it helps I intend on applying to Santander.
0
Comments
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Personally I would just leave them until after youve got the mortgage sorted. Some lenders have more of an issue if you are using a lot of your available credit which you dont appear to be.0
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