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Credit card history and mortgage application
murrays2
Posts: 133 Forumite
I have two credit cards
One with a balance of 2.2k with a 3k limit. Another with 0 balance and a 1k limit. I also have a 1.5k bank overdraft I never use.
The ome with a 3k limit was maxed out at 2k a few months back. I increased it to 3k. Its a 0% interest card until Aug 2020.
I earn 29k a year. I aim to go for a mortgage with a 5% deposit in Sept 2020. I will pay 100 quid each month off the 2.2k balance and clear the 1.2k in August 2020. Will mortgage lenders look at my past use of the card and say no im a risk based on usage? Or will they be fine as long as I clear the full balance before applying?
Not sure how this affects me. Any advice is appreciated.
I am mindful I have a high credit card utilisation. Do I have anything to be concerned about? Or will I be ok as long as the card is fully paid off?
One with a balance of 2.2k with a 3k limit. Another with 0 balance and a 1k limit. I also have a 1.5k bank overdraft I never use.
The ome with a 3k limit was maxed out at 2k a few months back. I increased it to 3k. Its a 0% interest card until Aug 2020.
I earn 29k a year. I aim to go for a mortgage with a 5% deposit in Sept 2020. I will pay 100 quid each month off the 2.2k balance and clear the 1.2k in August 2020. Will mortgage lenders look at my past use of the card and say no im a risk based on usage? Or will they be fine as long as I clear the full balance before applying?
Not sure how this affects me. Any advice is appreciated.
I am mindful I have a high credit card utilisation. Do I have anything to be concerned about? Or will I be ok as long as the card is fully paid off?
0
Comments
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As you have described it, your credit card history will not have any material impact on your mortgage chances. That is assuming you haven't missed any minimum payments, etc.
If you bring your credit card balance down to zero before applying (and thereon pay off any monthly balance in full), it's a complete non-factor so don't worry about it.0
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