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Credit cards and mortgage renewal
d0nkeyk0ng
Posts: 873 Forumite
My fixed rate mortgage ends in February and I will be looking to renew with a new provider (want to put my wife on deeds and mortgage).
I'm in the process of transferring my current credit card debt (approx £10k) to a 0% balance transfer 0% interest credit card. I'm aiming to pay off as much as possible on the new credit card as I won't be paying interest.
Should I close my open credit card account (it will have no balance left and up to £10k credit)? Just thinking about mortgage renewal deals and credit checks.
I'm in the process of transferring my current credit card debt (approx £10k) to a 0% balance transfer 0% interest credit card. I'm aiming to pay off as much as possible on the new credit card as I won't be paying interest.
Should I close my open credit card account (it will have no balance left and up to £10k credit)? Just thinking about mortgage renewal deals and credit checks.
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Comments
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What are your balances and limits across all cards?
It's unlikely to be a good idea to close it, unless your limits have dwarfing your income.0 -
Unlikely to make any difference.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Thanks. Once I've done the balance transfer:
card 1 - will have £9500 debt (0% apr so plan to clear by paying £500 a month)
card 2 - will have £10k credit limit but will keep unused. This is the card I've transferred the debt from as it was costing £150pcm in interest alone.
I've heard that mortgage lenders can be iffy if there's lots of unused credit available and could quickly be used (and hence mount up debt), but I've also heard reducing your available credit can lower your credit score. I wasn't sure what to do. I'm happy to leave card 2 unused.0 -
if you've lived in your current home for five minutes, had three jobs in twelve months and want 95% with a default from 2015 that's when you fret about available credit.
For most of the market, such micro-management isn't necessary.
I've been doing this over thirty years and I've never once suggested to anyone closing a credit card would help get them an accept instead of a decline.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for the reassurance.0
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