Applying for a new CC before mortgage application early next year

rvoice100

Hi all,

Need some advice if possible. Currently have zero debt, and saving around 2600 per month with my wife so not in too bad shape. Have had a work bonus which is paying for us to go to mauritus in april next year for my 40th.

Currently i have a hsbc CC with 0% purchases with 6 months left but have been offered a virgin card which would give me lots of virgin points which would basically mean a free flight for my wife and I if i use it to pay the mauritus trip. 

My worry is if this could hurt my credit score for when i would be applyjng for a mortgage early next year. Do you think its best to hold off and just use my current 0%card?

(I would be paying the full amount straight off the credit card)

Any advice is appreciated

CliveOfIndia

Given that you're not looking at a mortgage application until next year, there's probably no harm in applying for the card.  Especially if you're going to use it and clear it in full when the statement arrives.  You may as well grab the points on offer.

Having an extra amount of available (unused) credit may have a very small impact on your mortgage application, but it's most likely neither here nor there in the grand scheme of things.  What would have a much greater impact would be if you were carrying lots more outstanding debt.

Oh, and if you do apply for the card your score will almost certainly drop in the short term.  But since the score dished out by the CRAs is utterly meaningless, pay no heed.  A lender will be looking at your overall financial situation - income, debt, credit history (whether you have a track record of repaying what you owe).  They will perform their own internal scoring, but they can't even see the score you see on your CRA report.

fatbelly

As long as you make the payments on time I can't see a problem.

I set up a d/d for the minimum payment and make manual payments on top.

If you are in the habit of paying for goods on a credit card and paying in full each month then it makes sense to go for the one that gives the best bonuses