Card utilisation and credit score.

bobsp · 10 May 2017 at 8:08PM

I am looking at getting a mortgage soon.

I have 2 cards totalling 14k

They were at the limits on 0%, which ends soon.
I have paid off 9k and I am now on 37% utilisation.

I have also been fighting Experian who had such a mess of my credit file, my score was 420-490 for months.

That is all sorted now and it is 981, and in excellent.

The issue is I had a 0% offer from one of the cards until May18, for a balance transfer, I moved around half over to the other card.

The credit file was updated in between the transfer, and it looks like there is. Zero balance on both.

Will my credit score drop, at 37% utilisation when it us updated next month? Should I try and get it to 30%? Or is it a load of rubbish, the utilisation?

I understand the comments that may come about paying it off. I can't pay any additional, obviously I always do what is required, maybe a little more, until August now.

Having got my credit file sorted out, at last, I don't want to ruin it, and if needed I "could" stretch to getting it to 30% next week.

All of a sudden, with my score I am eligible for new cards, not that the want to at all, as the mortgage is what I need to be looking at soon.

Thoughts suggestions?

Thanks in advance. :-)

[Deleted User] · 10 May 2017 at 8:17PM

Ignore your score. It's largely fictitious, entirely meaningless and has no bearing on any lending decision.

Clear your balance as soon as you can, and then pay off in full thereafter.

bobsp · 10 May 2017 at 8:41PM

Whilst I agree with your comments. If a credit score is meaningless, what is the point, why are they used?

I have paid zero interest on my balance (paid a small fee) as I have managed it well. In such a case its a free loan, which was welcome when it was needed, so why pay it off in full?

If I could pay it off in full, why the need for a credit card in the first place?

Sorry for the questions, there is probably a lot I don't know.

[Deleted User] · 10 May 2017 at 8:53PM

The point of the credit score, is to generate interest in the CRA offerings.

A regularly changing score keeps customers interested, more than the actual data - which is the only thing that matters. The score is a highly inaccurate gimmick which only you see.

Using a credit card gives you section 75 protection as well as building a credit history. Clearing in full means you get these benefits without any costs.

bobsp · 10 May 2017 at 8:57PM

Just a thought, when my score was around 429, I did apply for credit, around £2,000 a few years ago, and was refused as my credit score was too low. So there must be some meaning to it, isn't there?

I do agree to a certain extent, I was associated with people I have never met, or heard of, and addresses at the opposite end or the country. Never been to the place, let alone live there. Apparently I had a mortgage for 420k as well. Only had one (paid off now) for £135k.

This is why I have spent months fighting these credit reference agencies who now admit they were reporting wrongly.

But if lenders are looking at them, that is quite an issue, as it nowhere reflects an individuals financial situation..

[Deleted User] · 10 May 2017 at 9:02PM

No. There is meaning to the data. Not to the score.

Sometimes the score may align to how lenders see the data. Sometimes it won't. For example, three categories of customers have historically had 999 scores - those with excellent credit histories, 18 year olds with no credit history and those who went bankrupt 3-6 years ago.

Only one of those groups would be deemed low risk by lenders.

Card utilisation and credit score.

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