Beginner - Amount of Available Credit & Used Credit

Current situation:

Income £30k, have a mortgage.
Post Office 0% Card £4k limit, £0 used.
Bank issued CC £3.5k limit, cleared in full every month, approx. £350 used each month (fuel expenses from work).
Personal loan total was £7.5k, £1.3k outstanding. Have the funds to pay off immediately if necessary but haven't as the interest saving wasn't worth it.

Have just opened Santander 123 joint with partner. Intention is to use for everything - maximise interest.

Partner income £4k
Parter bank-issued CC limit £2.5k. Card has never been used.

I want to start stoozing but am worried about my remortgage in 4 years time. I intend to pay off the loan ASAP, and have the PO card for stoozing.

Am I right in that I shouldn't max out the PO card, so as to keep my used/available credit at or around 25%? I'm thinking maybe I should just stooze £1k on it and then go back to my bank issued card until I can apply for another card - how long should I wait before going for another?

How much available credit is too much for me? If I pay off the loan I'll have £7.5k and will look to use £1.8k (25%), but I'll exceed 25% on the PO CC. Is this wise? How much available credit should I get to before I cancel a card? 50% of my income? 150%? Definitely want to get it this right, before I remortgage in 4 years!


  • Ben8282
    Ben8282 Posts: 4,821
    Combo Breaker First Post Newshound!
    Obviously one of your cards must remain paid in full every month otherwise you will start paying interest on purchases which will be more than any interest that you could expect to be paid on your savings.
    I assume you have some sort of existing customer balance transfer offer on the PO card as you suggest that is the one that you will be using. How long is the bt offer for? If it is 12 months with 3% fee you will pay £30 for £1000. How much net interest do you expect to make from keeping this £1000 in your Santander account for a year?
    But before you can do a balance transfer you need a balance. You don't have one.
  • Anthorn
    Anthorn Posts: 4,362
    First Post First Anniversary Combo Breaker
    Don't agree with Ben.

    The relationship between available credit and used credit is indicative of how high a risk you are. For example, if you have used all your credit and looking for more that may indicate that you are grossly overspending and at risk of defaulting. On the other hand rather obviously, if you are not using all your available credit that indicates a lower risk. Personally, I like to keep used credit below 50% of available credit to remain a good risk for future credit applications.

    No-one can tell you what your available credit should be and when to reduce it to maintain an overall acceptable available credit. If you can write a book about it which is accurate it will be a best seller. Trial and error rules.
  • Kendall80
    Kendall80 Posts: 965
    First Anniversary Name Dropper First Post
    If you do start 'stoozing' then just ensure that your stooze pot balance is higher than your CC debt. That way, when you do come to remortgage you can simply pay off all your CC debt at the first sign of any issues. Although I have many cards and have taken out 2 mortgages. The roughly 28k CC debt hasn't been an issue.
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