Have I got too much credit availability?

Superscrooge

The eligibility checkers are only a guide although I find the results of MSE, Clearscore and Noddle eligibility checkers are reasonably consistent.

Many credit card providers also provide eligibility checkers for their own cards which is useful.

steevio_uk

danlightbulb wrote: »

What sort of multiple would you consider a cut off point or to aim for? In your first example the person would have 2.5x salary in credit availability. In your second, only 0.25x.

This is also something that I'm keen to know.
After I clear my Barclaycard, I should have the following across 3 cards:

£11.2K limit / Zero Balance
£10.3k limit / £9.2k balance
£1.8k limit / £1.6k balance

So: 23.3k / 10.8k = £12.5k available
Income = £24k

Is there a particular 'sweet spot'?

abby1234519

steevio_uk wrote: »

This is also something that I'm keen to know.
After I clear my Barclaycard, I should have the following across 3 cards:

£11.2K limit / Zero Balance
£10.3k limit / £9.2k balance
£1.8k limit / £1.6k balance

So: 23.3k / 10.8k = £12.5k available
Income = £24k

Is there a particular 'sweet spot'?

Well, I have 24k limits in total - only have 2k on a credit card. I found that when my balance dropped from 7k to 2k suddenly I was attractive to credit lenders. But I really think it depends!

Thrugelmir

Why do need £25k of credit card facility?

That's the question that needs answering. Some things are down to common sense. Nothing more complex than that.

Superscrooge

My experience is that lenders are more concerned by actual debt than available credit.

Available credit across all my credit cards is over 2x my annual income, but this doesn't seem to concern lenders.

What does seem to concern them and is flagged up as a negative on MSE Credit Club is that my total debt exceeds my annual income. (Debt is all stoozed across high interest accounts. But they don't know that!)

steevio_uk

Thrugelmir wrote: »

Why do need £25k of credit card facility?

That's the question that needs answering. Some things are down to common sense. Nothing more complex than that.

I don't need that, but after I pay the BC off next week, that's what the situation will be.

So, it's a question of whether I lower the limit(s) to alter my available credit and what sort of positive/negative impact that may have.

I may need the BC credit in order to do an existing customer 0% transfer if it becomes available due to the already higher limit. Then close the other and take a new one out at the time the 0% comes to an end.

It's all just questions and options, isn't it. It's a fine juggling act at times.

danlightbulb

Thrugelmir wrote: »

Why do need £25k of credit card facility?

That's the question that needs answering. Some things are down to common sense. Nothing more complex than that.

I don't. I have it because of previous balance transfer promotions where I never closed the original card. I've kept them because some of them have offered repeat offers, although it's now clear that better offers are available than the repeats I'm being given. So for that reason I'm going to be opening a new card, but closing the old one is the choice.

Out of my cards, barclay card and Lloyd's tend to offer quite a few repeat transfers whereas HSBC doesn't. So if I was to close one it would be my HSBC card with a £7k limit.

PixelPound

The things I gather are important are ratio of available credit to annual salary, but as someone posted lenders werent bothered if its 2:1, maybe not that much a concern? CRA's do seem to indicate that any card over 50% utilisation is a negative - so your card #1. Of course this might not be much of a concern to lenders themselves.

Keep open what you need, close what you don't. I had a BC for 15 years, but now closed as their balance transfer deals were always beaten by my other cards. It makes sense to close, wait, then become a new customer to get a good deal - loyalty doesn't pay!