Mortgage/ Credit Card advice

MJD1983

Hello,

We are fortunate that family have helped clear our credit card debt (we need to pay them back when we can though) and our mortgage is up for renewal in November 2024. Which I am concerned about because we currently only pay 1.69% interest. 

I have closed our credit cards but I wondering if it would be beneficial to open up a new credit card account to pay petrol with and repay the amount in full everything month (likely to be in the region of £150 per month) to gain any rewards and to help improve my credit rating.

I have looked on the website and I see that although the above might be a good idea that it might be worth waiting until I have renewed my mortgage. Thoughts/advice welcome

MorningcoffeeIV

It's a good way of maintaining some credit history.

Far better to do it now while you're still over a year away from remortgaging.

prettyandfluffy

Make sure you set up a direct debit to pay it off in full every month and have a low limit.

GrumpyDil

prettyandfluffy said:

Make sure you set up a direct debit to pay it off in full every month and have a low limit.

What's the significance of having a low limit?
Pay it off in full each month or get a 0% spend card and put the money you would have spent to pay it off in a savings account. 

prettyandfluffy

GrumpyDil said:

prettyandfluffy said:

Make sure you set up a direct debit to pay it off in full every month and have a low limit.

What's the significance of having a low limit?
Pay it off in full each month or get a 0% spend card and put the money you would have spent to pay it off in a savings account. 

OP said their monthly spend would be about £150 and that they had borrowed money from family to clear credit card debt.  Therefore better to ensure it doesn't happen again.

th081

Do you have any negative markers on your file from your closed credit cards. 

Why would having a credit card help you in your mortgage application. Presumably you have not missed payments and it would depend on your loan to value ratio as to what deal you would get.

Given your previous situation of having to borrow from family to get out of credit card debt I would stay away and not open new ones and take the risk of getting back in debt pre or post new mortgage. 

MJD1983

Thanks for all the responses