available credit - does it affect credit rating?

busybumblebee

Hi
just looking for some advice please? I have two credit cards with quite a lot of available credit on them, neither of which I've used to anything near like the limit. One has over 10k credit, the other nearly 7k.

I don't plan on using them, so I was going to close them, but then wasn't sure if having credit available was seen as a positive by lenders? I'm not planning any additional debt, but will be looking at better mortgage deals later in the year.

Does it actually make any difference?

Thank you.

[Deleted User]

Yes, it makes a difference. But which way depends on your circumstances.

You want some available credit - more than you actually use and enough to show you are trusted by other lenders. But not so much that if you used it all, it would cause you problems.

JKSandy

A higher ratio of available is always good. But it can depend also on your own circumstances.


if you earn say £20k then £17k available credit would put lenders off or they may think you might go on spending spree and not afford to pay it back.

Paully232000

When I got a mortgage a year ago it was more a question of the balances on CC, and not the limits. I was never asked about limits.

and also, as said before, your salary is an important factor.

bsms1147

Paully232000 wrote: »

When I got a mortgage a year ago it was more a question of the balances on CC, and not the limits. I was never asked about limits.

They could obtain the limits from your credit file when they credit check you (and the balances too, for that matter).

How much it matters will likely depend on the specific lender.

busybumblebee

Thanks everyone, that's really useful advice. I alreadyhabe a mortgage, but the fixed rate ends later in the year,so likely to be looking for a more competitive rate.

I definitely think I should close one by the sounds of it, I still have available credit on the fluid one and if the worst happens and I do need to use it, then they offer the most deals.

My salary has dropped since I got the credit, now on 22k, was on about 28k. Looks like nw is getting shut!

Thanks all