Utilisation % across multiple cards

richy4

I have a quick query about credit card utilisation.

I understand from various sites and people that the ideal utilisation is 20-40%. However is this for one card or is it across all cards and therefore a % of all your available or used credit?

Currently I have a Tesco card with £5k limit, of which I have a balance of £2k currently, so over 40% utilisation. On my other card I have a £4k limit which is totally clear, only use it as a back up.

So would my utilisation be the 2 limits added together (£9k) and then the outstanding amount as a % across both of them? So £2k across £9k total available.

YorkshireBoy

That would be determined by the particular lender. We're not party to their algorithms.


But on such limits and utilisation, your income (and other financial circumstances) will have a larger impact than whether it's 22% or 40% utilisation.

bigadaj

richy4 wrote: »

I have a quick query about credit card utilisation.

I understand from various sites and people that the ideal utilisation is 20-40%. However is this for one card or is it across all cards and therefore a % of all your available or used credit?

Currently I have a Tesco card with £5k limit, of which I have a balance of £2k currently, so over 40% utilisation. On my other card I have a £4k limit which is totally clear, only use it as a back up.

So would my utilisation be the 2 limits added together (£9k) and then the outstanding amount as a % across both of them? So £2k across £9k total available.

No ideal or prefect solution, my thoughts are that less than 50% utilisation is preferable for both individual and total of cards.