Mortgage preparation: better to use overdraft or credit card?

A

Aodhán

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I haven't used my overdraft or credit card for the past five months, until last week when I used my credit card to pay €2500 (obviously it had to be paid). I could clear the credit card before the end of this month by going €800 in debt in my overdraft, or I could not do that but instead leave about €1000 of the credit card outstanding at the end of this month. In terms of applying for a mortgage in the first half of 2016, which is the worst of these two in the view of the bank?

Grma/Tks.
 
No big deal in using the CC to pay for occasional large expenses. This would not be an issue in a mortgage assessment providing that you are not in arrears on the CC. Assumption is that you will be clearing the total amount in the short term!
 
Neither,

Doesn,t particularly matter how you pay due bills , as long as you pay them on time.
Since OD carries less interest than CC makes sense to use OD, provided you stay within OD facility.
Answer = doesn,t matter.

And good luck on Mortgage.
 
Thanks. By "due bills" that means the minimum payment on the credit card? I can meet that no problem. I had, however, thought it meant clearing the entire outstanding amount off each month, which I cannot do without going into the OD.
 
Not an issue Aodhan! CC & OD are there to supplement short term cash-flow issues. There is no requirement to clear either off at the end of the month. As Gerry pointed out it will probably work out cheaper to use the OD and clear the CC in full!
 
44brendan said:
Not an issue Aodhan! CC & OD are there to supplement short term cash-flow issues. There is no requirement to clear either off at the end of the month. As Gerry pointed out it will probably work out cheaper to use the OD and clear the CC in full!
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Excellent, Brendan. Thanks!
 
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