Credit Score - overexposure, not payment issues

PocketGuy

Hi
Apols if this is the wrong place for this. Could well be my non-techie incompetence, but couldn't do a 'credit score' search as a phrase and find a thread/section dealing specifically with this question...





I'm trying to get advice or a steer on a 'rule-of-thumb' relationship between credit score and level of unsecured debt. Specifically:

• 2 x CCs - limit of £19k, used £14k - all 0%
• 1 x Loan - £15k, now £11k - 8.9%
• 1 x OD - £3,900 fee-/interest-free (Santander Premier A/C). Periodically used: balance currently well in credit
• 1 x Resi mortgage @ 90% LTV (heckuva deal when I got it... )
• 1 x BTL mortgage @ 75% LTV (low value monthly)
• Returned from abroad Dec 2007. Same house (and electoral roll) since.
• 6 credit accounts: Mob, etc. Perfect payment record.
• Income just dropped to £46k pa.
• Demonstrably living within my means...

Callcredit has my credit score at 586, which I understand to be subprime(!) Clearly, there's an exposure issue, and the low/no interest+money in the bank+money working elsewhere+rental yield seem to have no bearing.

Anyone happy to offer wisdom on ratios / percentages of CC/Loan credit limit:O/S debt that might help improve the situation? Note: if advice comes from anyone in the financial services sector, it will be taken purely as a steer and not as 'professional advice' - no worries there

Again, apols if this type of Q is posted elsewhere.
Cheers

Ben8282

Have you actually had a problem or an application for credit refused?

CLAPTON

you have 27,000 of unsecured debt and use your OD occasionally

demonstrably you are not living within your means

also best to check all three credit agencies and confirm see what they say (and make sure they all show you on the electrol roll)

Ben8282

Well yes, but is the OP actually having problems or is he just getting himself into a panic over some meaningless number from callcredit?

Hazzinho

You need your debt to be less than 50% of your annual salary otherwise you are high risk. Also CRA's don't know your salary.

leicsmarkyr

Hazzinho wrote: »

You need your debt to be less than 50% of your annual salary otherwise you are high risk. Also CRA's don't know your salary.

How is that possible if you have a mortgage? 99.9% of the time the value of the mortgage is at least double/triple of your annual salary. Or are you meaning loans/credit cards?

CLAPTON

leicsmarkyr wrote: »

How is that possible if you have a mortgage? 99.9% of the time the value of the mortgage is at least double/triple of your annual salary. Or are you meaning loans/credit cards?

Indeed so; mortgages are considered separately from unsecured or HP type loans.

PocketGuy

CLAPTON wrote: »

you have 27,000 of unsecured debt and use your OD occasionally

demonstrably you are not living within your means

also best to check all three credit agencies and confirm see what they say (and make sure they all show you on the electrol roll)

I have considerably more than the total debt in funds earning much higher returns than my total interest payments. The money borrowed is at no- or low-(ish) interest.
I am living within my means, but using OPM and leverage to generate more money. If it all went pear-shaped, I could clear everything down very quickly.
That said, I take your point...the Lenders won't share my view

The debt was less than 50% of my income until Dec. Change of situation and a resultant £20k pay cut! Happy days...

In any event, the debt is declining monthly & I was simply spooked by Callcredit's score and the possible implications if other Agencies take a similar view. Hence looking for advice on optimum ways to improve the score.

Thanks again for the feedback.