Credit Utilisation across Multiple Cards

Superhoopza

Hi,

I'm getting a third credit card and finally my first non starter card with a good life span of 0% purchases and BT so I can pay some of my debts that take interest. My question in relation to credit utilisation is that is it better to stay within 30% credit utilisation of each card or across the total limit of the three? Just so I can plan for the next few months.

Many Thanks

[Deleted User]

Both, although it's less of a concern with a 0% promo.

What cards, balances and rates do you have?

Superhoopza

Also I'm pretty sure I know the answer to this but just checking.

I have a £2k arranged overdraft which I will have to start paying £1 a day for from July onwards. I have to pay that fee until the overdraft is cleared in full so I'm better off leaving the spare cash in my account until I have built the £2k and then remove the overdraft facility right? As if I have say £1k in there it will make my credit offered to be be higher and my credit utilisation respectable as opposed to removing £500 from my total overdraft limit each month and being at close to 100% utilisation rate?

Thanks

[Deleted User]

Superhoop91 wrote: »

I'm better off leaving the spare cash in my account until I have built the £2k and then remove the overdraft facility right?

Wrong.

Leave the OD facility in place, but just stay out of it.

Superhoopza

Capital One - 34.9% 1k limit maxed out which I'll be putting over to Barclaycard
Capital One - 0% until August/September £500 limit maxed out
Barclaycard - 0% for 18 months from now. Limit £1.8k and no spend on it as it's arriving soon. Will be BTing the whole of the first card onto this as well as daily spending.

I'll have a total limit of £3.3k of which I'll have utilised about 50% of in total but 0% on card one, 100% on card 2 and 65%ish on card 3.

Superhoopza

I can't quote on my phone.

But thanks, yeah I'll leave the facility then. That makes sense.

[Deleted User]

The important thing is to get the debt onto 0%. Don't worry about the utilisation while it's on a promo.

Make sure you do your daily spending on a separate card, unless you also have a purchases offer or can't clear in full anyway.

Superhoopza

Yeah purchases are 0% for 18 months as well. So I can use as much as the £1.8k Barclaycard limit I need to pay off other interest charging debts and it shouldn't be much of a worry on my credit report?

Thank you

[Deleted User]

No. Lenders expect large, slowly reducing balances when on a promo.

Alexd52

If I read you right, you are suggesting that you will be spending on the Barclaycard where you have balance transferred to?
If that is the case, this is best avoided as you will be paying interest on your spending as you will not clear the statemented balance each month.
You would be better putting spending on the card that you have cleared and paying in full each month, thereby incurring no interest.

Alexd52

See ZX81 just beat me to it as I was typing