Advice needed regarding credit limit

YorkshireBoy

@mus2fa

Of the 5 searches you've listed, 3 of them will be seen by other lenders. When coupled with your utilisation (used vs available credit), you look desperate. You need to avoid making any fresh applications for some time.

You seem to have misunderstood the term "available credit". It's not what you have left to spend(!)...it's the sum of all your credit limits (across credit cards, overdrafts, and store cards).

Lenders use 3 key ratios when credit scoring you:

(1) Used credit to available credit
(2) Available credit to salary
(3) Used credit to salary

Could you summarise what your ratios are (in percentage terms)? We already know that (1) is very high (certainly on credit cards only). What about (2) and (3)?

mus2fa

YorkshireBoy wrote: »

@mus2fa

Of the 5 searches you've listed, 3 of them will be seen by other lenders. When coupled with your utilisation (used vs available credit), you look desperate. You need to avoid making any fresh applications for some time.

You seem to have misunderstood the term "available credit". It's not what you have left to spend(!)...it's the sum of all your credit limits (across credit cards, overdrafts, and store cards).

Lenders use 3 key ratios when credit scoring you:

(1) Used credit to available credit
(2) Available credit to salary
(3) Used credit to salary

Could you summarise what your ratios are (in percentage terms)? We already know that (1) is very high (certainly on credit cards only). What about (2) and (3)?

My salary is £36k.

How long should I wait till I apply for another card? If I accept the Tescos (£2500 limit) and Nationwide (£1000 limit) cards, which card should I move my balance from?

My Barclaycard balance is £1801 and my Creations card balance is £4480. Should I transfer all my Barclays balance and whatever i can from the creation card and then cancel the barclaycard? Will that help me when applying for a card in the future?

sfax

I would avoid any more than 2 credit searches in any 6 month period and you've already exceeded that so don't apply for anything else. As others have said you will be perceived to be desperate to get credit

Personally I would keep the Barclaycard and then transfer from the Creations card but it depends on how long you've had the accounts open and how much interest you're paying. Longer payment histories are looked on favourably - particularly if you pay off more than the min amount each month

Having too much credit available to you when you apply can be a negative factor so closing one of the other accounts before applying may help

Experian_company_representative

Only credit application search footprints are seen be lenders, so you can ignore the ID and quotation ones.

James Jones

mus2fa

Experian_company_representative wrote: »

Only credit application search footprints are seen be lenders, so you can ignore the ID and quotation ones.

James Jones

Thank you for your reply.

I dont understand why the Tesco one is showing as an ID and credit card search when it was just a quote. Would you know why that is?

The other thing is my reserve limit being included in the available credit limit. Is that fair? Isn't that showing lenders that I have £500 more credit than I actually have available?

Also, how long will it take before my Debenhams card shows that it is settled? I cancelled it last week but it is still showing as active. Is there any way to have it show up immediately?

Savvy_Money

I think Barclays view the reserve as an emergency (authorised) overdraft that they can charge £22 for using - but whilst in your reserve they will honour all payments. I think that is why they add the £500 to your OD limit. Technically you could access the whole amount hence the reason the reserve is reported as a part of the 'available credit/OD.

Cash_Flow

I would advise you to take the kind offer of 0% and £2500 limit from Tesco before they get cold feet - Furthermore given how close you are sailing to the wind, The "small limit" offered to you is in my opinion not to be sniffed at.

jo-bo

With regards with what to transfer you need to look at your interest rates on both cards. If the creation card is higher then transfer as much as you can of that. Then pay as much as you can to the credit card with the highest interest rate and make minimum payments +£1 to your other cards.
In 6mths time review your situation and you might be able to apply for another 0% card.