Credit utilisation / mortgage application

dancook96

Hi,
I'm 3 years away from applying for my first mortgage and I'm looking to find the optimum method of having the best financial circumstances ready for that point. I have included my current scores and credit card debt below. Is it best for me to pay off and close all credit cards? Is it best to keep some debt on a minimum monthly repayment basis? Is it best to keep a card open to use monthly (e.g. just for fuel) and paid off in full?

Equifax 534
TransUnion 602
Experian 942

Tesco Bank Foundation card (£600 limit) - Max spend £250 each month and paid in full
Halifax 0% interest card (£5000 limit 0%) - Paid off in full recently but still open (should I close?)
MBNA 0% interest card (£4000 limit 0% minimum payment £36) - Balance £1364.06 - paying £40 a month
(I can pay the above accounts off in full at any point)

Many thanks!

[Deleted User]

Ignore all of the scores.  They're not used in lending.

You only have three cards, Keep them all, use them and clear in full each month. You cn keep the 0% going as long as you clear it before the end of the promo.  Ignore the drop in scores when you clear the debt.

dancook96

Deleted_User said:

Ignore all of the scores.  They're not used in lending.

You only have three cards, Keep them all, use them and clear in full each month. You cn keep the 0% going as long as you clear it before the end of the promo.  Ignore the drop in scores when you clear the debt.

Thanks for the reply! Once the cards are all paid in full, is it best to just keep them all open?

[Deleted User]

Yes. You only have three cards, with very modest limits.

[Deleted User]

Honestly it sounds like you're already in a very desirable position to obtain a mortgage. Sometimes it's best to keep the cards open and continue what you're doing. It's not so much the credit score, it's the history and behaviours. It will look very desirable to a lender that you don't miss any payments and maintain a low credit utilisation.