Best way to manage credit cards - consolidate or split?

TryingMummyof2

I have about £9k debt across 3 x credit cards and the 0% APR is expiring. I have 3 other cards with zero balance which I can transfer onto @ 0% for 12 months. Is it better to split the £9k across the 3 cards to keep % rate of usage low or to put all onto 1 card to make 1 payment a month? Trying to build my credit score before we are due to remortgage next year! 

Mark_d

Firstly, I don't think you need to worry about preparing for the remortgage.  The mortgage lender won't care how many cards your debt is spread over.

Personally I'm a big believer in simplicity.  So I'd suggest consolidating your debt on to one card.

CliveOfIndia

It makes no difference.  Assuming there is room on one of the other cards to transfer the whole amount, just stick it all on the one card - makes life easier.  Are they all offering 0% for the same length of time?

The percentage utilisation is irrelevant, despite what the CRAs would like you to believe.  You can also ignore your score - it's not used, nor even seen, by any lender.  They will perform their own internal scoring (which bears no resemblance whatsoever to the score the CRA gives you) based on the raw data contained in your credit file.

What is far more important is to reduce the debt as much as you possibly can, as quickly as you can.  One factor that will be taken into consideration by a mortgage lender - or any lender, for that matter - is the amount of debt you're currently carrying at the time you make the mortgage application.  The less debt you have, the more favourable deal you're likely to be offered.  It makes no difference where that debt is sitting, all they're interested in is the total amount of debt you've got.

TryingMummyof2

Thank you! Yes 2 are 0% for the same length of time (one is slightly longer - so my favoured option) with similar transfer fees. For simplicity I will transfer to the 1 card with a limit to cover it all now I know that the % utilisation isn't to be worried about.