Building up credit rating...

[NoddyfromToytown]

Just looking for some advice as my mortgage is due for renewal at the end of this year. I do have two large loans and a car on finance but I also have maybe 4-5 credit cards with a combined limit of about £35k on them which are completely clear.

I know that it helps your credit rating to have available credit that you aren't using/are using less than 30% available but would it be better for me to put something on them each month (food, petrol) and pay it off or just to leave them all sitting with zero activity? Or does it not make any difference?

Just trying to get myself in the best possible position for when I apply.

Thanks,

What's the LTV of your mortgage, and your income? 35k available on credit cards is a lot, is there a reason you have so much? Id consider closing a couple and using one for spending but always pay it off. If nothing else its beneficial for purchase protection and cashback/clubcard points other perks too!

Assuming the interest rate on your loans will be higher than that of your mortgage it might be worth paying them down a bit as a priority, they will affect your affordability. That said, your current lender is required to offer you a product anyway. Speak to your broker about 6 months before your fixed rate is up.

You'd be better off cancelling unused credit cards other than one. And then using that for everyday purchases providing you keep it under 25% (I think can't remember the exact recommended usage percentage) and pay it off in full after receiving the statement.

Sign up for free on Credit Karma or similar for specific advice, it tells you how to best boost your credit score.

LTV will be 90% unfortunately as I had to borrow extra for some home repairs last time I re-mortgaged (one of the loans is due to everything further that then went wrong!). I had debt on the credit cards but consolidated them into one loan with a low-ish interest rate which is why the cards are now sitting empty. I didn't request those limits, it's just what I was offered. My income is just over £50k but currently applying for jobs around £58k so hoping to be in that position by the time the renewal is due - new mortgage deal will need to start in Feb 2025 so thinking well in advance. I've done some soft searches online and seem to be getting offered fairly decent deals so that was a little bit of a relief.