Aqua credit card: effect on mortgage applications

JEM1

I am looking to buy my first home in less than a years time. I want to make sure that I’m in the best position possible when it comes to applying for a mortgage.

I’m 25 and I have had an Aqua credit card for the last three years, my credit utilisation is low and have no defaulted payments, as full payment comes out of my current account via direct debit every month.

I have been told that I should consider changing credit card, as the Aqua card could be viewed negatively by mortgage lenders as it is a credit card for those wanting to build credit rating. Should I close the Aqua card account with 3 years of perfect payment records to a more favourable credit card?

jay1804

You should keep the card.

I believe the actual lender of a credit card won’t make a difference to a mortgage application, as they are only looking at how the credit card account has been kept (On time payments, staying within the credit limit, etc).

boo_star

Nobody other than yourself can see who your creditors are, so nobody checking for a mortgage application will see it's an Aqua card.

If the limit is low (£100's) them that may be detrimental but it's too late to do anything about that anyway.


Keep it.

JEM1

Thank you for clarifying.

My credit limit is in the £1000s. And only ever use less than 10% of my limit.

Second question: should I reduce my credit limit a little to have lower total credit available to me, whilst still maintaining a low credit utilisation? I also have a PCP loan on my car of about £15k.

boo_star

JEM1 wrote: »

Thank you for clarifying.

My credit limit is in the £1000s. And only ever use less than 10% of my limit.

Second question: should I reduce my credit limit a little to have lower total credit available to me, whilst still maintaining a low credit utilisation? I also have a PCP loan on my car of about £15k.

Don't change anything.

[Deleted User]

No one will see it’s an Aqua card but you.

Don’t lower the limit either.