What should I do with my current credit card debts to improve the chance for home loan approval?

Hi there, The best thing to do would be to pay off the debt as quickly as you can. If you are looking to maximise your borrowing capacity you would want o either cancel or reduce the limit when it is paid off. As long as you do not miss the minimum monthly amount payable, you will be constantly improving your credit score which is a good thing when going for a home loan. Missed repayments will lower your credit score which means you could have fewer options (specialist lenders) if your credit score drops below 650-700.

If you’re looking to get a home loan, it’s important to make sure your credit score is in the best shape possible. Paying off your credit card debt is one of the best ways to improve your credit score and increase your chances of being approved for a home loan. The first step is to make a budget and determine how much you can afford to pay off each month. You should also look into transferring your credit card balance to a card with a lower interest rate, which will help you save money in the long run. If you can’t pay off the entire balance, try to pay off as much as you can each month. This will show lenders that you’re serious about paying off your debts and will help improve your credit score. It’s also important to make sure you’re making all of your payments on time. Late payments can have a negative impact on your credit score and make it more difficult to get approved for a home loan. Finally, make sure you’re not taking on any new debt. Taking on new debt can have a negative impact on your credit score and make it more difficult to get approved for a home loan. By following these steps, you can improve your chances of being approved for a home loan. Good luck!