Available Credit %age - high or low?

Picky

Do credit card providers see a high level of available credit as good or bad? I have previously been declined for 0% credit cards, despite a blemish-free record (I got a Help To Buy mortgage last year, which needs a perfect record), but my Barclaycard is almost maxed out. As my available credit percentage is low, I got a basic Capital One card with a £500 limit. I use this but pay off in full at the end of each month. Will this help me to get a 0% spending card in a few months' time?

YorkshireBoy

Credit card providers will use (amongst many other things) 3 key ratios when deciding whether to a) offer you credit, and b) how much:

Available credit to income
Used credit to income
Used credit to available credit

...across all forms of revolving credit facilities, ie credit cards, store cards, and overdrafts, all expressed as percentages.

So for someone on a £20K salary, with £10K available credit and £5K used, their respective figures will be:

50%
25%
50%

What are your figures?

Picky

Does mortgage debt count as used credit?

YorkshireBoy

Picky wrote: »

Does mortgage debt count as used credit?

Not for the purpose of these ratios, because it's not a form of revolving credit. Mortgages and loans generally have a fixed payment and duration, ie you may see your mortgage shown on your credit report as "300 x £676" (where 300 is the number of months), and a loan would show as "36 x £145".

Picky

In that case, my figures are:

24%
22%
89%