Credit cards/ Mortgage

dkpgal

I have Capital One and Barclay Card credit card which a pay in full every month. I've had the Capital One card about 4 years and the Barclay Card about 2 years. I opened both to improve my credit score (and it has!). I've now saved enough money for a deposit on a house (first time buyer). My question is, should i cancel my credit cards in exchange for better credit card i.e with my own bank and a higher credit amount (i've been pre-approved) before applying for a mortgage? or is it better to keep my existing cards, which shows potential mortgage lenders my history?

[Deleted User]

Keep the cards.  Don't worry about any changes in your score, it's not a factor in lending. Just ensure you clear all cards in full each month.

D3xt3r5L4b

Don’t apply for any credit leading up to your mortgage 

PRAISETHESUN

Don't make any credit applications in the 6-12 months leading up to your mortgage application. Once you get it, see if you're still eligible for any of the cards you've been "pre-approved" for as your eligibility will likely change. I'd probably reccomend keeping your existing cards until after you get approved for any new credit and then decide what to do - if you're afraid of spending on them and running up debt then close them, otherwise there's no harm in keeping them around to help maintain your good repayment history.

jbrassy

As mentioned by everyone else above, keep your current cards and use them as you currently do, i.e. paying them off in full every month. Don't apply for any new credit cards in the 6-12 months leading up to a mortgage application. 

However, once you've got your mortgage and moved into your new house, I would consider getting a cashback credit card such as the American Express Platinum cashback or Barclaycard Rewards. These will have much higher credit limits and you will get cashback in return for paying off your statement in full every month. 

dkpgal

Thanks everyone for the good advice. Much appreciated. I'll keep my existing cards, i was just afraid mortgage lenders would see that i have 'bad' credit cards and that would potentially harm my application.

[Deleted User]

Unless they really wanted to be petty, no mortgage lender is going to look at who issues your card, only at the data e.g. paying in full every month. There really is no difference/kudos from having a premium card or having a credit builder card in terms of data beyond your own view (it's like if you call yourself Bucket or Bouquet), it's probably why some banks have snobbish sounding names like the Barclaycard Platinum card I have - it was considered one of the easier BT cards to get, above say Cap One for sure but certainly not difficult to get but it doesn't mean I'm rich just because it is called Platinum. Someone with a premium card who doesn't pay off their debt in full every month looks worse than someone with a basic card who pays off in full.