Could this level of credit damage in profile?

londoner1998

Hello

I have just got my second credit card (Halifax Clarity) and to my surprise I was gaivne 4,500 credit limit. I have also Natwest Your Poitns World Mastercard with a 1,400 limit and I am wondering whether this, together with the available overdrafts in my current accounts would be more detrimental than helpful if in a year or 18 months I want to get a mortgage (not definite, but it is on the horizon). To make it clearer, this is the current situation:

- Halifax Clarity- limit 4,500- I am planning to use this abroad on a trip to India I have planned and when I go to Spain to visit family, taking advantage of the no overseas fee and cashback reward- plan to pay in full
- Natwest World Mastercard- limit 1,400, I put around 200 each month and pay in full
- Natwest Current Plus Account with a 3,400 overdraft available- used to use it in the region of 100-200 during a bad month every so often, now only the odd 20-30 very, very rarely (I got my act together and became much more oprganised!)
- A&L- Overdraft 350- again, used rarely, the odd pound if I am not careful
- Halifax Reward Current Account- provisional o/d of 400, now it has been raised to 1,100 (just as I got the credit card approved)


My salary is 25,500 a year and I am at risk of redundancy, but working very hard to get a job that pays a bit better with the company I am in. I have savings abroad from an inheritance.
I also have another couple of accounts, one current with natwest that I am not using and a savings one - I am planning to close these two, would this be a good move?

My plan is to get the Halifax overdraft reduced to say 100 and may even the Clarity credit card one, to say 2,000. It is extremely unlikely I will be using all that credit- I don't spend more than I earn, and I am very careful with my finances, but I want to be in a good financial position should I decide I want to buy a house in the next couple of years.

Any advice appreciated!

YorkshireBoy

In my experience mortgage lenders aren't interested in credit limits, only actual debt...and it's servicing costs.

londoner1998

Thanks Yorkshireboy

So is it what I borrow against what I have available that matters? My partner thinks that it won't hurt that I have a good level of credit available against my salary so long as I keep the borrowing and repaying consistant- is that so? It does worry me that my salary is pretty low compared to what I have available ... I must add, I got the first credit card to start building some kind of credit history, not because I needed it. I never had loans, or credit cards before, so it all looked pretty bare. Sorry, I am new to all this and I am learning as I go...

Thanks,
A