Paying off a credit card, but which one?
Discussion
I'm in the process of trying to secure a mortgage and have registered with Experian for their credit check. Luckily I came out with a good score, but one of the things it said I could do to further improve my score was to reduce the number of accounts I have. Seems fair.
I have two bank accounts and four credit cards, two of which are maxed out at zero interest and slowly being whittled down, and two of which are barely used and have had nothing on either until very recently. They are emergency cards more than anything.
I've decided it's best to cancel one of them, but I'm not sure which one would work best, or if it makes a difference.
One of them (Mint) has a limit of £1600, and the other (Halifax) has a limit of £6000. I've spent around £300 on each so can clear it off first, but I'm wondering in the eyes of the credit check people, is it better to have less potential debt in total (so keep Mint and ditch Halifax) or does having a card with a higher limit that you not used show restraint and therefore makes you a safer bet?
Or do they not get that deep into it and I'm being hyper-sensitive?!
Cheers in advance.
I have two bank accounts and four credit cards, two of which are maxed out at zero interest and slowly being whittled down, and two of which are barely used and have had nothing on either until very recently. They are emergency cards more than anything.
I've decided it's best to cancel one of them, but I'm not sure which one would work best, or if it makes a difference.
One of them (Mint) has a limit of £1600, and the other (Halifax) has a limit of £6000. I've spent around £300 on each so can clear it off first, but I'm wondering in the eyes of the credit check people, is it better to have less potential debt in total (so keep Mint and ditch Halifax) or does having a card with a higher limit that you not used show restraint and therefore makes you a safer bet?
Or do they not get that deep into it and I'm being hyper-sensitive?!
Cheers in advance.
Kill the £6k one.
If you are living off your cards that's bad. You are however lucky they are on a low/zero rate.
Depending on when the zero rate ends, perhaps you can use some mortgage money to pay them both off!?
Ask for a little more for "home improvements" wipe your cards clean and never rack up credit on them again, pay them down monthly
You will only get yourself in a worse mess one day.
If you are living off your cards that's bad. You are however lucky they are on a low/zero rate.
Depending on when the zero rate ends, perhaps you can use some mortgage money to pay them both off!?
Ask for a little more for "home improvements" wipe your cards clean and never rack up credit on them again, pay them down monthly
You will only get yourself in a worse mess one day.
Gassing Station | Finance | Top of Page | What's New | My Stuff