Whose Credit file will be worse? (Twins both have £21,000 Credit card limits each) !

Galeeno

If 2 people (lets say they are twins for this example, and have identical lifestyles, - to make this example simple..

If they have 4 credit cards both taken out (in single account holders).

PERSON 1, has taken a balance out on the cards of £10,000
Credit card 1 = £2000 limit Taken out -£1000 (balance is -£1000)
Credit card 2 = £2000 limit Taken out -£2000 (balance is -£2000)
Credit card 3 = £5000 limit Taken out -£3000 (balance is -£3000)
Credit card 4 = £12,000 limit Taken out -£4000 (balance is -£4000)

Total available credit limit = £21,000 (£2k + £2k + £5k £12k)
Total debt = £10,000 (£1000 + £2000 + £3000 + £12,000 )


PERSON 2, has the exact same cards, but has Not taken out anything,
Credit card 1 = £2000 limit Taken out £0 (balance is £0)
Credit card 2 = £2000 limit Taken out £0 (balance is £0)
Credit card 3 = £5000 limit Taken out £0 (balance is £0)
Credit card 4 = £12,000 limit Taken out £0 (balance is £0)

Total available credit limit = £21,000 (£2k + £2k + £5k £12k)
Total debt = £0 (as they haven't taken anything out)

The question is, are both their credit file scores going to be similar or the same? (as both have available credit)

or Person 1s credit score will be lower as they have alot of debt, where as person 2 has no debt (although they have the available credit)

in other words, is available credit, and 'taken out credit/debt' - referred to as the 'same' on a persons credit file ?

reclusive46

Galeeno wrote: »

in other words, is available credit, and 'taken out credit/debt' - referred to as the 'same' on a persons credit file ?

No, it shows the available credit and the balance on the card on the statement date.

brendon

reclusive46 wrote: »

No, it shows the available credit and the balance on the card on the statement date.

I'm not sure this is quite true. My credit report lists values that are not my balance on statement date -- moreover, they have never been my specific balance on any date. I assume my bank is reporting a weighted average.

TheMoney

When you apply for credit, lenders will assess what credit you already have available, regardless of how much of it you have used. If they see you already have a lot of available credit, they will be wondering why you don't use that, or will expect you have used it and may not be able to afford additional payments. Credit scores themselves are irrelevant.

SnowTiger

brendon wrote: »

I'm not sure this is quite true. My credit report lists values that are not my balance on statement date -- moreover, they have never been my specific balance on any date. I assume my bank is reporting a weighted average.

My Noddle report lists statement balances and what the balance was when the snapshot of my account was taken.

reclusive46

brendon wrote: »

I'm not sure this is quite true. My credit report lists values that are not my balance on statement date -- moreover, they have never been my specific balance on any date. I assume my bank is reporting a weighted average.

Ah, I've always repaid my credit cards in full and it just shows the statement date balance.