Should I pay off credit cards now? And should I close the cards?

pablakeman

So I am a few weeks away from applying for a mortgage - I have a decision in principle that is based on having a certain amount of credit card debt carried over (its all 0% interest so I am not worried about it, don’t need advice on that aspect)

So basically - I have net 5k of cash, but i have a DIP for 160k if I carry 6k of debt (meaning I have 11k cash, 6k debt - this 11k allows me to pay an 8k deposit + fees etc...)

For the other debt that I have, should I just pay this off now? The DP is based on this being paid off, and I have the cash to pay it (as I said, I am in a net 5k+ position at the moment).

Also, should I close the cards or leave them open? OR a mixture? A certain credit utilisation I should aim for maybe?

All advice appreciated - relevant to the question, or any other sage advice please let me know

It’ll be a help to buy property and we are using out help to buy is as to pay most of the deposit (the rest coming from cash)

Thanks!

Moneyminded

If you are just few weeks away from applying for a mortgage I wouldn't do anything now. Most credit reference agencies take about a month to reflect any changes so anything you do now is unlikely to be reflected in your credit history by the time you make the application.