Advice needed please

Options
emz190
emz190 Posts: 6 Forumite
in Mortgages & endowments
Hi there,

my partner and I are currenly saving for a mortgage.
I have previously taken out payday loans, around 4 years ago
I took and paid off the last one. I have recently been taking
Cash out of my credit card. I had no idea It would have a bad affect
on my credit score. I of course will no longer be taking out money on my credit card.
And aim to have it paid back by November (£2500).
We arnt aiming to start looking until March next year, do you think this will have a
major affect on me being accepted? Everything else is up together and paid on
time, I never go into my overdraft, and I always pay over the minimum payment.
Any advice greatly received.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    Why not use your savings to repay your credit card balance?
  • emz190
    emz190 Posts: 6 Forumite
    Options
    Thank you,
    will this improve my credit score for the lender? If that makes sense?
  • sparkey1
    sparkey1 Posts: 444 Forumite
    First Post
    Options
    CRAs record when you are paying the minimum payment, so always pay more.

    Its nonsensical to pay interest on the credit card if you have the savings, so pay off the credit card.

    There is no benefit having a balance on a credit card.

    Most lenders will reduce your borrowing if you have credit card debt. They wont increase the borrowing if you have savings. Clear the debt.
  • emz190
    emz190 Posts: 6 Forumite
    Options
    Thank you,
    do you think this will have a bad impression on me in a mortgage interview as it comes up as cash advance, or if i get it paid off soon will that give me a better chance? I know martin lewis says dont withdraw money on a credit card at least 3 months before applying for a mortgage. Should I still have a good chance? Or have i ruined it?
  • dimbo61
    dimbo61 Posts: 13,720 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Options
    The sooner you pay off the credit card debt the better !
    Why pay 18/23 percent on a credit card and earn 1/2/5 percent from savings ?
    The quicker you pay off your credit card the sooner it drops off the credit file.
  • MovingForwards
    MovingForwards Posts: 16,963 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    https://forums.moneysavingexpert.com/showthread.php?t=5884031

    Makes it easier for people to give acurate advice if you put ALL the info in one post.
    Mortgage started 2020, aiming to clear it in 2026.
  • emz190
    emz190 Posts: 6 Forumite
    Options
    Thanks for all the advice everyone, so would you advise pay it all off and then wait 6 months? Do you think this will be ok?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.6K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards