Using a credit card..

chuckley

if there was a set formula we would all have an abundance of credit with no qualms.

some people get increases the more they max out their cards.
some people get increases the less credit they utilise.

just spend as you need to and repay. There's no guarantee using 20% of available credit will get you a top line card with 0%.

TheDebtinator

I meant file, not sure why I typed rating.

Anthorn

Ebe_Scrooge wrote: »

Why ? Not necessarily disagreeing with you you, just curious as to your reasoning ?

The utilisation rate comes out of the Experian credit score and is a negative if it's too high. Otherwise known as the balance-limit ratio. Basically we look at the overall balance-limit ratio and not the ratio of just one account unless there is only one account. The recommended ratio is 30% and not 50%. However I have always set mine at below 50% and that hasn't done me any harm that I know of.

http://www.experian.com/blogs/ask-experian/2013/10/30/how-utilization-rate-affects-credit-scores/

planteria

CLAPTON wrote: »

best to leave a generous gap so stop you accidentally going over your limit.

if that is a real risk, perhaps yes..
but basically you can relax and spend as much or as little as you want each month, with a Direct Debit to clear the balance in full.
just have your Credit Limit and Ability to Repay in full in mind.

Gouki7851

If you plan on applying for a new card I wouldn't use more than 30% of your limit for a few months prior to applying. I use eligibility checkers to see how good my credit worthiness is and went from 70% chance of cards to 0% when I maxed mine out over Xmas not going over limit however just running at 95% of limit. I make multiple repayments per month and have a dd for full amounts. If you are planning to get a new card then I would keep the max balance to around £100 for a few months before applying as some cards take nearly 2 months to report new balances. If you are not planning a new application and making at least minimum payments spend what you need to, 2 months before applying for new credit keep utilisation at a max of 30%.