Credit Score and Maximum Borrowing

Buzzybee81

My credit score was excellent this time last year, but since buying a house it has dropped to fair. Is this because I am reaching a maximum borrowing amount?

I don't have any adverse credit and all utility bills are up to date.
I do have a store account that I occasionally spend around £100 on and always pay off to avoid interest, but I've noticed that they have up'd my credit limit to £5k. I don't need this amount but would it help my credit rating if I reduce my limit or would this make things worse?

Advice from you guys would be appreciated please

[Deleted User]

Your credit score is a fictitious number that reacts negatively to change - ignore it. Lenders only use the data on your files, never the pretend rating.

Your store card limit is still low, so leave it as it is, unless your total limits are dwarfing your income.

Buzzybee81

Thank you for your helpful response!!

What is the ideal % for income to borrowing limits?

[Deleted User]

It varies across lenders and depends on what type of credit is is and how much of the limit is being used. It also depends on your income.

If you were very cautious, you might want to keep it under 50%.