Credir card paid in full each month affecting mortgage application

kingstreet

Having the money in your account as a positive and using a credit card when it is repaid in full at the month-end using those positive funds is not necessarily the same as using an overdraft in the usual sense.

An overdraft usually involves NEXT month's income paying for LAST month's spending.

minimike2

kingstreet wrote: »

Any names here, Mike?

I've not seen or heard this, so it sounds like lenders we don't use or don't use often. Even Santander don't do this and that's a lender which takes debt into account repaid in the last three months...

I have PM'd you

Robsia2

Phew!! Got my mortgage offer today - the full amount I need. VERY relieved and happy.

AngusMcFilth

Noticed a similar thing myself - your statement balance is reported to the credit reference agencies, even if the card is repaid in full. I tend to put a lot on my card each month (work expenses) which shows up as additional debt on my credit file despite repaying in full. This also affects the utilisation figure (percentage debt compared to overall limit).

Have got around this by paying the full balance the day before the card statement is produced. That way, I get a bill for £0 and it shows up on my credit file as s £0 balance. The tricky bit is working out when statements are issued. It is usually a few days after the payment due date.