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Does changing your credit card effect your credit report for first time buyers
afc_dan
Posts: 6 Forumite
in Credit cards
I have had a post office credit card for around 1 and a half years (never missed a payment) however there are no benefits to it. If I change cards, will this be a bad move with me looking to buy my first place in around 6 months time?
Thanks
Thanks
0
Comments
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Likely to be fine if you change now, but it is ultimately a hard search on your record. The lenders however will be more interested in level of debt, affordability and how you manage the card.1
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It will have no impact on a mortgage application.1
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I wouldn't change cards, just get a new one if you qualify for better perks and keep the old one, using occasionally to keep it "alive" as it were as a positive for your credit history
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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To the mortgage provider it will be that you've applied for an additional credit product and then have closed a prior credit product at a later date. It will all be in your credit history and thats what lenders use to decide if to lend etc.afc_dan said:I have had a post office credit card for around 1 and a half years (never missed a payment) however there are no benefits to it. If I change cards, will this be a bad move with me looking to buy my first place in around 6 months time?
Thanks
What the impact is? That depends on a lot of other factors, if you are a border line case it may tip the balance, if you're applying for a 30% LTV and 1.5x salary then its unlikely to make the slightest difference. Doing it 6 months before applying is going to be better than doing it a month before applying (at which point the original card would still show as open) but not as good as doing it a year in advance1
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