Ideal credit limit on credit cards?

Zandimos

Hi all,

First post on here! I’m wondering if anybody has experience in credit ratings. I’m looking to apply for my first mortgage next year and so wanting to get my credit rating tip-top.

I have 2 credit cards, one with a limit of £2000, £1450 spent on it (paying off £150 a month, 0% interest) and one with a limit of £1500, £100 spent on it (paid off in full every month). The limit of the £1500 was £2400 but I reduced it as I read its bad to have too much unused credit.

Would you say I am at around the right credit limit or should I be doing more to be in an ideal situation?

Thanks in advance,

Joe

[Deleted User]

You don't have a credit rating to improve. No one does.

What matters is your history.

Paying the credit cards off in full or making at least the minimum on promotional balances is a good start.

Fireflyaway

My belief is its more how you use it. Not going over, paying on time, not using more than around 40-60% of the available balance etc.
The available credit will be taken into account by lenders. If you had £30k limit on credit cards the mortgage lender might lend you less as you could max them at any point.
I hope your on track as I too have 2 cards with similar limits and I'm also hoping to get a mortgage! Then I will be closing the cards, I hate credit cards!
Good luck.

takman

Zandimos wrote: »

Hi all,

First post on here! I’m wondering if anybody has experience in credit ratings. I’m looking to apply for my first mortgage next year and so wanting to get my credit rating tip-top.

I have 2 credit cards, one with a limit of £2000, £1450 spent on it (paying off £150 a month, 0% interest) and one with a limit of £1500, £100 spent on it (paid off in full every month). The limit of the £1500 was £2400 but I reduced it as I read its bad to have too much unused credit.

Would you say I am at around the right credit limit or should I be doing more to be in an ideal situation?

Thanks in advance,

Joe

£2400 is a low limit anyway so it was pretty pointless reducing it to £1500 but it's done now and no point in changing it again.

Just continue to use your card each month like you are now and pay it off in full and on time. Also make sure you fully pay off the 0% card (with it showing a zero balance on credit reports) before you apply for your mortgage.

Fireflyaway wrote: »

I hope your on track as I too have 2 cards with similar limits and I'm also hoping to get a mortgage! Then I will be closing the cards, I hate credit cards!

Why would you hate credit cards!. You can get Cashback Cards and 0% cards to earn you money and you also get Section 75 protection on all purchases over £100.

So it's silly to not have at least one!.