Not sure how to approach CC balance / FTB mortgage application

M

misheshy

Registered User
Messages
3
Hi all,

I am 30 yrs old, planning to apply for my mortgage in early 2018.

Mostly my credit rating is in good shape; I have one loan with my bank that is active for the next 2 years, and have never missed a payment. Not too worried about it.

However, I do have a credit card that has a balance of about 1800 on it. The limit is 2000, but with interest and my income not being particularly high, i am finding it hard to pay it off faster.

My question is:
Is it more damaging to have an outstanding balance on a credit card, or a higher loan from my own bank?

The fastest way for me to clear the card and get rid of it would be to top up my current loan and pay it off in one go. This will add an extra 15e to my current loan payment weekly, but it will be an approved loan by my own bank if you like. I also won't have a 70e monthly payment to the CC which is not even making a dent in the debt.

Without telling me what a bad idea the CC was - I know, thanks - can anyone offer some sound advice?
 
I don't understand.

If you have a bank loan which is going to take you two years to pay off and a credit card balance of €1,800 which you are finding it difficult to clear, how are you going to be able to afford a mortgage?

Do you have savings? If so, you should use them to clear down both loans.

Brendan
 
If you can't afford to pay off a €1,800 credit card balance, how are you going to afford to repay a mortgage?
 
Sorry to take over the thread but I was wondering if someone could help me..

I missed two consecutive credit card payments.. I missed a DD back in July 2014 as my wage was a day late coming into my account and then they automatically cancelled my DD which I wasn't aware of until I received my Sept 2014 Statement and seen that my account was 2 months in arrears I automatically paid some of the balance off (credit card had 400 euro on it). I haven't missed a payment in the last 24 months.

I am applying for a mortgage in the coming months and was wondering how much of an impact would this have on my application?
 
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