Which debts should I tackle first ?

nicd1981

Morning MSE, I’m painstakingly trying to clear off my credit file to
Hopefully apply for a mortgage 2020.

I currently have :

HSBC Credit cars £5,006 repay £125 pm
Tesco Credit card £1,600 fee free no repay at min
Barclaycard £950 repay £50pm
Lloyds bank loan £4,980 repay £205 pm
Lendable loan. £4,900 repay £165 pm
Car finance £9000. Repay £130 pm

The interest rates are similar on loans and credit card
All accounts are up to date , with no missing payments although when I moved bank last year I did miss a loan repayment but as soon as I realised I paid on card - this made my credit file drop by about 500 points .

So my aim is to close the barclaycard and Tesco card in January . I’ll also have the cash to close one other loan / or large CC .

Which looks better on file - HSBC credit card or lloyds bank loan ?

Thanks in advance for any advice .

[Deleted User]

They're the same.

Pay the one with the highest rate.

Don't worry about the 500 pretend points, but make sure you maintain payments going forward.

Nasqueron

That amount of debt which you clearly aren't going to clear by 2020 and are paying minimum amounts towards some of them, will harm your credit rating (not score) is going to severely impact your mortgage chances. None of them look better on your record, other lenders see you have debts not who they are from.



One thing to consider, if your Barclaycard has a 0% transfer deal, perhaps try and get some of the other CC debt onto that so you can clear the other card and pay less interest.



Pay the highest rate down quickly



I'd also query your Tesco card, even if it's 0% you still have to pay the minimum a month normally

nicd1981

I don’t plan on settling my car , will still be paying that off for 4 years . The rest though I plan on setting £5k loan or credit card , and the two smaller credit cards .
I’ll stil then owe the car and £10k which I want to pay over over the next 12 months .