Settle credit card or settle loan first?

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kingkong2020
kingkong2020 Posts: 9 Forumite
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in Mortgages & endowments
Hey,  i just wanted to know what will have a bigger impact on lending for a mortgage. I have about 4K on credit cards and 4K on a loan. 

Which one should I clear first to make a bigger difference on the amount I could borrow?

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  • mwarby
    mwarby Posts: 2,048 Forumite
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    I should imahine the difference would be marginal at best. I'd focus on repaying the one with higher interest rate first
  • Sebo027
    Sebo027 Posts: 212 Forumite
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    I agree with Mwarby.
  • athomz21
    athomz21 Posts: 16 Forumite
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    Hi not sure if it's too late, but my mortgage advisor said it was best to pay a credit card off rather than the loan, as the loan is a secured debt. 
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    How do you know the loan is a secured debt?
  • amnblog
    amnblog Posts: 12,445 Forumite
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    The credit card will have the bigger impact - if the loan payments are not over around £120. 
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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