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    • ywlgy
    • By ywlgy 30th Nov 17, 11:55 AM
    • 12Posts
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    ywlgy
    Utilisation rate - HELP
    • #1
    • 30th Nov 17, 11:55 AM
    Utilisation rate - HELP 30th Nov 17 at 11:55 AM
    Hi all,

    I recently applied for my first credit card. I have a question now about utilisation rate after reading some articles.

    Some suggest utilisation rate should not be over 30%. Is it true?

    I only have £250 limit with Aqua. My intention is to increase my limit asap. My current utilisation rate is 50.5%. Should I pay before statement come out to reduce it below 30%? Or should i keep it high so that Aqua would consider increasing my limit?

    Thanks
Page 1
    • AndyPix
    • By AndyPix 30th Nov 17, 12:04 PM
    • 3,051 Posts
    • 2,126 Thanks
    AndyPix
    • #2
    • 30th Nov 17, 12:04 PM
    • #2
    • 30th Nov 17, 12:04 PM
    My intention is to increase my limit asap.
    Originally posted by ywlgy

    Sounding desperate for a big limit on a high APR card ..


    This is unlikely to end well
    Running with scissors since 1978
    • MallyGirl
    • By MallyGirl 30th Nov 17, 12:04 PM
    • 2,098 Posts
    • 6,974 Thanks
    MallyGirl
    • #3
    • 30th Nov 17, 12:04 PM
    • #3
    • 30th Nov 17, 12:04 PM
    don't pay before the statement or it will look like you are not using the card. With such a low limit I would not worry about utilisation. Just keep using the card and paying in full to build up some good behaviour history.
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    Any views are mine and not the official line of MoneySavingExpert.com.
    • Kim_13
    • By Kim_13 30th Nov 17, 12:12 PM
    • 1,470 Posts
    • 1,755 Thanks
    Kim_13
    • #4
    • 30th Nov 17, 12:12 PM
    • #4
    • 30th Nov 17, 12:12 PM
    I always thought it was 50%, so I'd say you're fine as you are. If you do decide to make a part payment, check the terms of your agreement as with some cards, the payment would affect the DD being taken (as the minimum would presumably have already been paid) and then interest would end up being charged if part of the statement balance hadn't been cleared.

    As Mallygirl has said, utilisation tends to be given more of an emphasis with higher limits.

    I don't have an Aqua card so I can't add any personal experience unfortunately.
    Sealed Pot 11 #520 ~ /£100
    VSP 2017 #9 ~ £108.83/£250.00
    CCCC 2017 #1 ~ £220.95/£120.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • Kim_13
    • By Kim_13 30th Nov 17, 12:23 PM
    • 1,470 Posts
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    Kim_13
    • #5
    • 30th Nov 17, 12:23 PM
    • #5
    • 30th Nov 17, 12:23 PM
    Sounding desperate for a big limit on a high APR card ..


    This is unlikely to end well
    Originally posted by AndyPix
    Not necessarily, though of course I'd agree if the OP is wanting a bigger limit so as to carry a balance.

    I have a card with a £500 limit and could easily go over a £250 limit (as you essentially have two months' spending on the card just before the Direct Debit goes out.)

    A higher limit makes the card easier to manage, as you don't have to worry so much about every penny that goes on it (or worry about how part payments work with your provider if you want to clear a bit to continue spending on the card.) That itself comes with a lead time of a few days before the credit is available to spend again.
    Sealed Pot 11 #520 ~ /£100
    VSP 2017 #9 ~ £108.83/£250.00
    CCCC 2017 #1 ~ £220.95/£120.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • ywlgy
    • By ywlgy 30th Nov 17, 4:11 PM
    • 12 Posts
    • 2 Thanks
    ywlgy
    • #6
    • 30th Nov 17, 4:11 PM
    • #6
    • 30th Nov 17, 4:11 PM
    Sounding desperate for a big limit on a high APR card ..


    This is unlikely to end well
    Originally posted by AndyPix
    no, technically i don't need any credit because i am a saving person. I just want to build my credit history for future possible mortgage. A large limit means i can have protection when buying expensive things and rent cars abroad.
    • AndyPix
    • By AndyPix 30th Nov 17, 4:33 PM
    • 3,051 Posts
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    AndyPix
    • #7
    • 30th Nov 17, 4:33 PM
    • #7
    • 30th Nov 17, 4:33 PM
    no, technically i don't need any credit because i am a saving person. I just want to build my credit history for future possible mortgage. A large limit means i can have protection when buying expensive things and rent cars abroad.
    Originally posted by ywlgy



    Fair point - well made
    Running with scissors since 1978
    • Dobbibill
    • By Dobbibill 30th Nov 17, 7:44 PM
    • 2,548 Posts
    • 3,636 Thanks
    Dobbibill
    • #8
    • 30th Nov 17, 7:44 PM
    • #8
    • 30th Nov 17, 7:44 PM
    OP - 30% - 40% is sometimes recommended as a safe amount to use given the timing between usage in one month and DD taken the following month.

    Paying it off too soon can seem as though it's not being used - DDs going out via DD on the due date build a consistent history of using/repaying/repeating.

    As the due date is generally around 3 weeks after the statement, usage in month 2 will push your utilisation up to approx 60% - 70% meaning it's still not maxed up the limit so doesn't look at though you are using every penny of credit available.

    Running it at 50% per month leaves very little wiggle room for errors.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


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