To much available credit?

Phil3822

Hi all, I am wondering if I should cancel my credit card. I don't use if much and when I do I pay it off in full each month however it has an £8k limit. I wonder if this looks like I have to much available credit.


I also have a loan with £2k outstanding. An available overdraft of £2k although account is in credit plus a mortgage.


I am wanting my credit file to be in top order prior to applying for a re-mortgage early next year. I am on the electoral role, all payments up to date and in order, minimum searches etc. I occasionally get the £2 copies of my credit reports thought I would check this available credit part out. Thanks all.

Tixy

I doubt it would make much different to a mortgage application.

If you wanted to do anything I would reduce the limit a bit rather than cancel the account altogether

Phil3822

Thanks for your suggestion. I just want my credit file to be the best it can be and look as good to lenders as possible. Bit obsessive over it really but want it A1.

[Deleted User]

A mortgage is completely different from a revolving credit facility such as a credit card. Because of this, it's very unlikely that your limit would have any effect on your remortgage application. £8k is not an outrageous limit, if anything it shows that you can be trusted with a decent limit without maxing it out. I'd just leave it be if I were you.

YorkshireBoy

Phil3822 wrote: »

...however it has an £8k limit. I wonder if this looks like I have to much available credit.

Your £8K limit needs to be taken in context, ie how does it compare to your income?...25%?...50%?...more?


By way of example, I have around £90K of available credit, across credit cards and overdraft facilities. My highest limit credit card is just under £25K and largest overdraft facility is £10K.


Do you think this is too much?...bearing in mind you've no idea of my income.


But I agree with the previous poster...leave it be and if the mortgage provider isn't happy (unlikely), then reduce it and supply proof of the reduction.

CLAPTON

start using the card regularly for normal purchases and pay in full each month ...

8k limit is relatively small

pay the loan off

these will give you the best credit file