Percentage of Credit Available

newmoneyjedi

Hi guys, quick question im hoping someone can answer for me.

Am I right in saying that there is an ideal percentage of credit that you should have available when applying for more credit.

Meaning that the provider doesn't like to see that you are maxed out as this will deter them providing you with more credit, but also they dont like to see that you have lots of credit available as they will wonder why you are asking for more.

Does anybody know perhaps what the range is for this if I am correct in my thinking?

Thrugelmir

newmoneyjedi wrote: »

Am I right in saying that there is an ideal percentage of credit that you should have available when applying for more credit.

Ideally 0%. Ie credit card balance is repaid in full every month, or if not, repaid in a clear demonstrable manner.

Use of credit to sustain lifestyle can be picked up from credit agency history.

DizzleUK

Thrugelmir wrote: »

Ideally 0%. Ie credit card balance is repaid in full every month, or if not, repaid in a clear demonstrable manner.

Use of credit to sustain lifestyle can be picked up from credit agency history.

I disagree. 0% would show up on your credit file as totally unused accounts and thus the creditors would be less willing to extend credit as there's no point. Creditors do like to see that a customer is credit active.

When a creditor reports to the agency they usually do so with data from the most recent statement. If you have a £1000 limit and have spent £500 then that is the balance shown. If you pay that in full a few days later then this only reflected with a green zero on your file unless the creditor reports "white data", which only a few do currently.

From what information I can gather on here, it is ideal to be using around 20-50% of your available credit at any one time.

Tixy

Different lenders will look for different profiles. But you need a combination of not looking like your current credit is maxed out but also not having too much credit compared to your income etc.

There is no one ideal answer.

I'd have thought probably no more than 50% of your credit used, and total credit being no more than 50% would put you in a reasonable good position, so your debt being less than 25% of your income.