Credit Utilisation Question before applying for a new Balance Transfer Card

SaiK86

I have a general question about credit utilisation as I have two credit cards (both on 0% interest deals), one of which (Barclaycard) is about to come to an end of its promotional offer in 3 months and would like to shift my current 0% debt to another 0% card....


What is more attractive to a prospective lender? (before applying for the new balance transfer card):

1). Reduced unused/available credit limit (on the Barclaycard/both cards??) and let the card(s) show on my credit file with a utilisation of more than 60%*?

or

2). Leave the credit limit (on the Barclaycard/both cards??) as they are and instead try to reduce the balance(s) first to show utilisation under 60%*?

(*60% according to MSE Credit Club, taken from Affordability Score section)


Or does it not matter due to the different lending criteria of the numerous lenders out there and/or my credit scores are good anyway (see further down below for my scores)??
I haven't decided yet of the new B/T card I want to apply for but will decide closer to the time of application.

Don't worry.... I am not looking to be that "serial" balance transfer guy shifting debt to 0% B/T cards constantly for the rest of my life but simply asking to improve my credit reporting knowledge/education. FYI - I have some savings just under £10k in the bank but do not want to touch this as I'm saving up for a mortgage to buy my first property in 2-3 years time.


Background info (my 2 cards):

1). Barclaycard, Balance £7,461 (Limit £10,000) 0% Promo ends 01/06/2017 (with no balance transfer offers monthly)
Currently 75% Utilisation

2). MBNA, Balance £4,004 (Limit £9,800) 0% Promo ends 19/11/2018 (with constant balance transfer offers monthly for 15mths on a 0% deal)
Currently 41% Utilisation

Utilisation taking into account both cards: 57.9%

FYI-
My Credit Scores:
Experian (906/999)
Equifax (483/700)
CallCredit (585/710)

MSE CreditClub Affordability Scores:
1. Debt Ratio - Very Good
2. Credit Utilisation - Fair
3. Disposable Income - Very Good



Apologies in advance if this has been posted elsewhere and answered many times over!


Thanks.

[Deleted User]

Makes little difference.

Ignore your credit scores. Try to get your utilisation down. Somewhere south of 40% would show you're in control. You also need to consider your debts against your income.

If you're earning 50k, then your debts may not worry future lenders. If you're earning 20k, you're looking more than a little precarious.

SaiK86

Thanks zx81 for your response! Much appreciated.

In response to the last point, I'm on £42k p.a. (incl. bonus)

But in general, I guess what you're trying to say... leave the credit limits as they are and aim to bring the balance down on both cards to under 40% if i want to get the best cards/interest rates out there...