Should I apply for more credit to increase utilisation ratio?

edited 30 November -1 at 1:00AM in Credit File & Ratings
3 replies 491 views
1983.aww1983.aww Forumite
1 Post
edited 30 November -1 at 1:00AM in Credit File & Ratings
I’ve a decent credit score and pretty high in all areas except for utilisation. I didn’t like the idea of high potential debt against be so I asked my CC company reduce my limit by half. This move my utilisation from approx 40% to 80%. Despite my overall lending being reduced my score has reduced.
Now I don’t know if I should restore my card limit to its original value. The risk being to my intention to apply for a personal loan. Will the personal loan be more dependent on my credit score and the utilisation component or the overall borrowing?

Replies

  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    The scores are made up - ignore them.

    Asking your CC company to reduce your limit was a bad idea as lenders may look at your report and wonder why it was reduced - maybe on the basis that you cannot manage money responsibly.

    You won't be able to restore your limit to what it was before - in fact the lender may well be less inclined to offer you a limit increase seeing as you requested it be reduced.

    Do not get a loan - especially just to boost a non-existent score/rating.
  • DCFC79DCFC79 Forumite
    40.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    1983.aww wrote: »
    I!!!8217;ve a decent credit score and pretty high in all areas except for utilisation. I didn!!!8217;t like the idea of high potential debt against be so I asked my CC company reduce my limit by half. This move my utilisation from approx 40% to 80%. Despite my overall lending being reduced my score has reduced.
    Now I don!!!8217;t know if I should restore my card limit to its original value. The risk being to my intention to apply for a personal loan. Will the personal loan be more dependent on my credit score and the utilisation component or the overall borrowing?


    Who gave you the decent score ?
    You might find your rated less by 1 of the other agencies, check them out, call credit can access via Noddle and equifax via clearscore(you not seen the tv ads) or experian via credit club.


    The application will be based on your credit history and the data you supply when you apply but in no way is a score taken into account.
  • edited 30 July 2018 at 4:15PM
    sparkey1sparkey1 Forumite
    444 Posts
    ✭✭
    edited 30 July 2018 at 4:15PM
    Its only high potential debt if you go out and spend it. You have been hit because your utilisation has shot up. There are two thresholds, 30% and 50%. You are now up to 80%, so perversely you are higher risk and will therefore find it harder if not impossible to get your limit raised.

    But if you dont ask, you wont get.
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