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 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?