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Too much credit available. Myth or fact?

lucyinthesky
Posts: 23 Forumite
Hi, I've heard that it's possible to have too much credit available and that this can have a detrimental effect on chances of getting a mortgage. I'm currently doing some credit housekeeping as I want to apply for a mortgage soon. Can anyone please tell me whether I should cancel some of my credit cards (I have 3 - total credit limit £16,500 and if I use them they are paid off every month in full)?
Also, I have quite a few savings accounts which I don't use as I only opened them for temporary canny money saving purposes (like the tesco clubcard offer one).
Should I also close these in order to boost my rating?
Or is this all a myth? Any help would be appreciated! Many thanks.
Also, I have quite a few savings accounts which I don't use as I only opened them for temporary canny money saving purposes (like the tesco clubcard offer one).
Should I also close these in order to boost my rating?
Or is this all a myth? Any help would be appreciated! Many thanks.
0
Comments
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http://www.moneysavingexpert.com/loans/credit-rating-credit-score
see the 'Boost Your Credit Score' section.0 -
Before I applied I had about £20000 worth of credit. I cancelled a couple of catologues that I never used and on a couple of other things I reduced the limits. For example Next catologue-£4000 limit,reduced to £300. Anyone in their right mind would never bump a catolgue up so high so why have it? My broker advised me to do this and ive had no probs whatsoever with the mortgage application. I suppose lenders think that if you take out a mortgage and then use up all available credit there is risk of falling behind with payments. But dont get rid of everything some credit is good.0
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Savings accounts are not credit.
You can have TOO much credit available.
If you don't need 16.5k CC limits then reduce themBank Accounts - Barlcays Premier[/B] - £1000 o/d, HSBC - £200 o/d- First Direct - £500
Credit Cards - Barclaycard £2000 - Silver Card £1300 - Flybe £7500 - HSBC £1000 - First Direct £2500 First Direct Gold £3000
6 credit accounts closed in 2010!
Official SOS Club number 001 - Dry until 01.07.100
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