Closing credit cards before house completion?

moneysaver1978
Forumite Posts: 205
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We have a couple of credit cards that while we clear balances every month, they are not giving us much benefit in terms of points or cashback so we were thinking of closing them for a new credit card.
We have already exchanged for a new house and expect to complete by end of this month, so a 0% credit card might be useful for furniture purchases and DIY projects!
But is that too risky with the mortgage, etc.? Should we wait till we move or no difference?
We have already exchanged for a new house and expect to complete by end of this month, so a 0% credit card might be useful for furniture purchases and DIY projects!
But is that too risky with the mortgage, etc.? Should we wait till we move or no difference?
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Comments
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moneysaver1978 said:
But is that too risky with the mortgage, etc.? Should we wait till we move?
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CliveOfIndia said:moneysaver1978 said:
But is that too risky with the mortgage, etc.? Should we wait till we move?
Does this apply also to any 0% finance (to spread the costs) like John Lewis, DFS, etc.?0 -
moneysaver1978 said:CliveOfIndia said:moneysaver1978 said:
But is that too risky with the mortgage, etc.? Should we wait till we move?
Does this apply also to any 0% finance (to spread the costs) like John Lewis, DFS, etc.?
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Having said that, for us HSBC didn't perform any follow up searches in the six months between offer of mortgage and completion.
If you aren't increasing your overall debt level it shouldn't matter at all, if you're simply closing an old card and taking out a new one but not spent on it yet, you have no more liabilities against your name than when you applied for a mortgage - and this is how mortgage affordability is calculated - it is based on what you owe, not on what you could potentially owe.0 -
I wonder if making a new credit card application from the new house (with 0 years of history living there), might result in a declined result (and unnecessary hit on the credit rating) but definitely feels a lot less risky than losing the mortgage!0
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Possibly. But you can ignore the hit on your credit rating.
All it will be is a search.0 -
moneysaver1978 said:I wonder if making a new credit card application from the new house (with 0 years of history living there), might result in a declined result (and unnecessary hit on the credit rating) but definitely feels a lot less risky than losing the mortgage!0
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