Very low credit utilisation!

Gregorian141

Dear Money Savers 

I have owned a series of 0% spending cards over recent years and usually stop using them once the promotional period ends, trying to have them all paid off by this time. I now have over £5000 in unused credit and due to having nothing to spend any money on during lockdown, have almost paid off an interest free balance transfer card with a few hundred still on it.

Therefore my overall credit utilisation is very low. I could cancel these cards but would rather maintain the financial relationships. Will decreasing my credit limit on each card have any negative effect on my credit score?

I am also concerned about having such a low utilisation rate. I know it’s good to maintain some manageable debt rather than have none and I rent so don’t have a mortgage. Obviously, decreasing the limits will increase this a little. Should I be concerned about having too low a utilisation? 

Thanks! 

[Deleted User]

Any change will drop your score, but that's not a reason to do something or not.

With such low limits, keep all your cards and accept any increases that are offered.  Demonstrate to lenders that you can be trusted - and trust yourself - with higher limits.

maxximus75

I wouldn't lower your limits.

Don't be concerned about having a low usage.

If you decrease your limits across several cards, it can look that your providers are lowering them due to financial hardship and spook any other creditors.

Keep them as they are and set them all up to pay in full and rotate and use them for the odd purchase, each month.

Malkytheheed

Some months my credit utilisation is less than 1% and yes, this hurts my "credit score" 

Does this bother me? Not a jot. Because it doesn't affect my likelyhood or a ability to get credit. My actual credit worthiness is not impacted.