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Credit Card available balance and Mortgage
diggingdude
Posts: 2,501 Forumite
Hi all, pretty simple question (I hope).
Got a credit card with £12k available balance. Finished paying it off a few months ago. Thinking about my mortgage next year, is it best to reduce this balance to say £5k. I have no current plans to spend on it other than putting fuel costs on which will be paid off in full each month.
Sure I read on here somewhere that a large amount of credit, even if not used can impact what you can borrow which obviously i wouldn't want. However I would like to keep some available as an emergency card for unexpected works, to take on holiday just incase etc
Any advice would be appreciated.
Thanks you lovely people
Got a credit card with £12k available balance. Finished paying it off a few months ago. Thinking about my mortgage next year, is it best to reduce this balance to say £5k. I have no current plans to spend on it other than putting fuel costs on which will be paid off in full each month.
Sure I read on here somewhere that a large amount of credit, even if not used can impact what you can borrow which obviously i wouldn't want. However I would like to keep some available as an emergency card for unexpected works, to take on holiday just incase etc
Any advice would be appreciated.
Thanks you lovely people
An answer isn't spam just because you don't like it......
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Comments
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When I applied for my mortgage recently they weren't worried about available balance. They were interested in how much spend on it. Though as it is variable and I pay IN FULL it did not impact the application.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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BALANCE can be a concern. But available limit shouldn't present any problems, especially a low amount like that. Is it your only card?0
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It is only card yes. A legacy from paying for my master's years ago as was a cheaper way than taking a loan. Only tended to use it last few years for larger purchases to get additional cover. Can't really see why I would need that much so might just reduce it to £5 or £6k. I'm not someone who is ever tempted to spend on it recklessly as I remember the pain of paying back over the years for that blooming course
Thanks for the feedback.An answer isn't spam just because you don't like it......0
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