Credit usage percentage VS total available credit??

DH0586

Hi people,

We are planning on making a mortgage application in a few months time. I have read conflicting advice on available credit (overdrafts & credit cards). Some say that it is best to leave old cards open & have unused overdrafts as this gives a low credit usage percentage. Others say that its best not to have too much available credit.

I have £4100 in overdrafts that I never use & 3 credit cards totaling £8500, 1x 0% card used as an interest free loan (will be repaid before mortgage application), 1x monthly spending card (paid in full each month) & 1x unused card.

Am I best to keep these as they are (fairly high amount of unused available credit)? Or am I best to close the unused card & lower my overdrafts?

Appreciate any advice

Thanks
Daniel

Quimoi

I think the uncertainty and conflicting advice is because no-one apart from the lenders know how they view available credit - they don't tell us and are all probably different to some degree anyway.

If you aren't using the credit though then the percentage is going to be zero whether you have £1 of available credit or £10K.

If you aren't planning on using them then I'd close all but the one with the highest limit and the one which is oldest. You cover all bases with that approach...

Thrugelmir

Why do you need the credit facilities?