Learn how credit cards affect your credit score and mortgage application.
Credit cards are a common part of daily finances, but many people don’t realise how they can affect your credit score and mortgage application. Used wisely, they can boost your financial profile — but used poorly, they can work against you.
Build Your Credit History
For many UK borrowers, a credit card can be one of the first steps to establishing a credit history. Payment behaviour is reported to the major UK credit reference agencies — Experian, Equifax and TransUnion — and making payments on time helps show lenders you’re responsible with credit.
✔️ Tip: Choose a card with a manageable limit and pay on time, every time.
✖️ Warning: Late payments can stay on your file and hurt your mortgage chances.
Earn Rewards — But Don’t Overspend
Many cards offer rewards or cashback on everyday purchases. While these perks can be useful, they can tempt you to spend more than you otherwise would — and that can lead to debt.
🔑 Pro tip: Only use a rewards card for regular, planned spending that you can repay in full each month.
💡 Check fees: Some rewards cards charge annual fees — only choose one if the rewards outweigh the cost.
Use Balance Transfers to Reduce Debt
If you have high-interest debt on existing cards, a 0% balance transfer offer can help you pay it down faster. In the UK, many providers run introductory interest-free periods, which can save you money if you clear the balance before the offer ends.
➡️ Important: Watch for balance transfer fees — and avoid new purchases on that card until your debt is fully paid off.
Financing a Purchase with 0% Offers
Occasionally, a card will offer a 0% purchase period, which lets you spread the cost of a big purchase without interest. This can be useful if you’re confident you’ll pay it off before the offer expires. However, always read the terms carefully, as deferred interest clauses can sometimes charge all accrued interest if not settled on time.
Best Practices for Mortgage-Friendly Credit Card Use
Keeping your credit card habits healthy isn’t just good money sense — it can also help your mortgage application. Here are key rules to follow:
- Pay on time each month
- Clear your balance in full where possible
- Stay well below your credit limit
- Avoid applying for multiple cards shortly before a mortgage application
These behaviours help demonstrate to mortgage lenders that you’re a low-risk borrower.
In Summary
Credit cards are not inherently good or bad — how you use them matters. When managed responsibly, they can help you build credit, minimise debt, and keep your finances in shape ahead of applying for a mortgage.
If you’re unsure how your credit usage could affect your borrowing power, it’s worth speaking to a mortgage broker who can help you understand your options and guide you towards the best strategy for your circumstances.
Annabelle Bezant, January 2026
