Focused repayment of credit cards

dave18

My wife to be (getting married a week today :beer:) wants to lower her credit utilisation, to improve our chance of getting a mortgage/securing a more expensive house, as we have recently sold our house, just to add to the stress! :eek:

The last 12 months have seen us focus on saving for our wedding, especially as all of the credit card debt is at 0%. After next weekend we believe that we will have several thousand pounds left over so plan to use this to pay off some of the debt in her name, as my cards are all pretty much paid off.

From a purely mortgage lender perspective, would folk recommend that we focus on reducing the balance on one card to 0 or reducing Several cards below a certain utilisation %? Ta in advance.

[Deleted User]

Focus on the one that reverts to go to rate first.

[Deleted User]

Speak to a broker.

Affordability plays a big part of a mortgage as well as existing debts

dave18

My broker was reluctant to give me any specific advice along this front, and referred me to the MSE website! Affordability is known, but she stated that her debt levels will limit the size of loan we can apply for.

[Deleted User]

dave18 wrote: »

My broker was reluctant to give me any specific advice along this front, and referred me to the MSE website! Affordability is known, but she stated that her debt levels will limit the size of loan we can apply for.

Then you need to find new (better) broker.

A professional broker should be able to answer your questions without referring you to a publicly answered forum.

gionnetto

dave18 wrote: »

The last 12 months have seen us focus on saving for our wedding, especially as all of the credit card debt is at 0%. After next weekend we believe that we will have several thousand pounds left over so plan to use this to pay off some of the debt in her name, as my cards are all pretty much paid off.

Reduce the balance on each card below 30% first and foremost. Then slowly pay off the rest to take full advantage of your 0% offer.

[Deleted User]

gionnetto wrote: »

Reduce the balance on each card below 30% first and foremost. Then slowly pay off the rest to take full advantage of your 0% offer.

Again with the 30% myth.
Stop spouting the CRA drivel

PRAISETHESUN

Thee fact that all cards are at 0% is good, since you aren't paying outrageous amounts of interest - make sure you pay them all off before the offers end. Focus on the cards with offers ending soonest. You can pay them off in chunks with whatever cash you have available or if you think you can manage it, you could stooze them and pay them off right as their offers end - set aside the money in an account paying a good rate of interest and the interest you earn can also be put towards servicing your debt.

I wouldn't bother about trying to maintain a certain % utilisation on each card, as your total credit utilisation is also taken into account when applying for new loans. The total amount of debt will limit the amount you are able to get, so I'd focus on reducing it in a way that saves you the most money doing so.

gionnetto

!!! wrote: »

Again with the 30% myth.
Stop spouting the CRA drivel

You obviously don't work in that sector and never have. Fair enough. It's fair to assume you don't know what Delphi is, which you obviously are entitled not to know.

You spout your own made up opinions, which again you are entitled to have.

The only problem is, CRAs sell their proprietary versions of scoring systems to lenders, while you don't.

And finally you are rude, when you say "stop" this or that. I said whatever I want, just like you do. If you're not ok with it, skip what you don't like and move on with your life.

[Deleted User]

Lender do not use the scores, ratings or utilisation myths spouted by the CRA’s.

They use the data from ones credit file and run it through their own systems that analyse debt, risk, income, affordability etc.

I’ve never kept a credit card under 30% utilisation, not that it matters anyway as it’s paid back in full each month, yet get offers of credit cards, limit increases, preferential rates etc.

So yes what you are spouting is nonsense and even the CRA’s have the utilisation advisory under the “what’s affecting your score” heading - so yes it’s a myth for ones fictional score boosting.

You have no idea what I do, what I know, who I know, what industries I’m familiar with etc.