Credit limits - should i reduce?

Roland_Sausage

I have been working to reduce our credit card debts for the last 6 months through 0% cards and snowballing, and am making good progress.

I have been doing some calculations regarding credit utilisation and wanted to check that these figures would seem favourable to lenders as we will potentially be applying for more 0% cards in the future.

Obviously the credit used is reducing with every month that goes by, however should we be looking to reduce the credit available as well? I am a bit aware that my own credit limit is quite high compared to my salary and this may not look good.

Without giving specific figures, the ratios are as follows:

Me:
Credit available v salary: 88.04%
Credit available v credit used: 52.47%
Credit used v salary: 46.19%

The wife:
Credit available v salary: 64.31%
Credit available v credit used: 48.01%
Credit used v salary: 30.87%

Stereo

Your credit available vs income may cause a headache for potential lenders. However, because your usage is going to be reducing, I would say that you should reduce some of your limits so that the ratio is about 50-60%. This will give you a better chance of being accepting for new credit once some of your current debt has been paid.