Better to have debts on credit card or loan
Discussion
Internet seems to be giving conflicting advice - wondered about peoples thoughts on here on the situation below.
We have some debt split across a loan and a couple of long term 0% credit cards (roughly split 50/50 between cards and loan) as a result of paying for a operation. Now things are settled again we're looking at moving house now and have reasonable chunk of equity which would ideally go towards larger dwelling.
It's been suggested that mortgage lenders 'prefer' the loan because it's a fixed amount monthly even though we are paying interest on it. We are paying more than the minimum amount on the cards to help clear them quicker; we could clear the loan and put it onto one of these cards if preferable as have sufficient credit.
For purposes of mortgage hunting...
Question 1 - anyone know if it makes a difference to keep debt on one person or better to spread evenly between both of us
(All of the debts are under me). Or move it all to a loan which will be more expensive long term but result in a specific monthly outgoing?
Question 2 - We have a third card (historical) with nothing on it as paid off (read 'transferred') but a large credit limit. Better to cancel this card as it lenders could see it as potential to hugely increase debt OR would it be seen as a long term stable credit example?
Question 3 - Finally, we've got some savings tucked away which we could use to help pay for some of the many house moving costs OR we could pay off some of debt (20%) now. Do lenders care about savings or better to use it to clear some of the debt to look more attractive to a lender?
Or are there no right/wrong answers to these questions? Being a grown up sucks!
We have some debt split across a loan and a couple of long term 0% credit cards (roughly split 50/50 between cards and loan) as a result of paying for a operation. Now things are settled again we're looking at moving house now and have reasonable chunk of equity which would ideally go towards larger dwelling.
It's been suggested that mortgage lenders 'prefer' the loan because it's a fixed amount monthly even though we are paying interest on it. We are paying more than the minimum amount on the cards to help clear them quicker; we could clear the loan and put it onto one of these cards if preferable as have sufficient credit.
For purposes of mortgage hunting...
Question 1 - anyone know if it makes a difference to keep debt on one person or better to spread evenly between both of us
(All of the debts are under me). Or move it all to a loan which will be more expensive long term but result in a specific monthly outgoing?
Question 2 - We have a third card (historical) with nothing on it as paid off (read 'transferred') but a large credit limit. Better to cancel this card as it lenders could see it as potential to hugely increase debt OR would it be seen as a long term stable credit example?
Question 3 - Finally, we've got some savings tucked away which we could use to help pay for some of the many house moving costs OR we could pay off some of debt (20%) now. Do lenders care about savings or better to use it to clear some of the debt to look more attractive to a lender?
Or are there no right/wrong answers to these questions? Being a grown up sucks!
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