Credit card utilisation

noclaf

Greetings all.
A few years back when interest rates were better, I was using 0% CC's to "stooze" and maximise the interest and cashback on my various current accounts. The stooze figure reached just over £9k on a single Cc. At that point I decided to begin aggressively paying down to keep things sensible. I've since brought the balance down to just under £3.5k. currently my CC utilisation is above 50%. I've only just become aware that this could impact my credit rating..I say that as last yr I was rejected for a mobile phone contract and the only possible reason I see based on a credit check was my utilisation. What I didn't realise is that my old cc had a limit of around £10k whilst the current cc is just over £6k. I've been in continuous employment for the last 8 years, never missed a payment etc etc Is there any negative impact carrying this high utilisation on the cc as I gradually pay it down? I have no other debt and don't use any other Cc's so this cc is essentially a "holding place" to clear the residual balance. I don't use it for any purchases as I always use debit card. Is there any benefit to having another credit card just for monthly purchases that would be paid off in full at the end of each month to continue building my credit rating but also to increase my overall credit limit and reduce the net utilisation ratio?

coachman12

Always worth having more than 1 CC; I have 8, including Debit Cards. But nothing about what you have said makes me think you are doing anything which might harm you.
You say "I've only just become aware that this could impact my credit rating..I say that as last yr I was rejected for a mobile phone contract and the only possible reason I see based on a credit check was my utilisation.". I think under-utilisation of CC is hardly likely to have been the reason for  not getting a mobile phone. Unless you have been naughty in the past ( CCJs, missed payments, too much stoozing to the extent of addiction), I see no reason why you should be worried. And , indeed, you should be pleased at how you have got away from stoozing and ahve more than halved your outstanding credit balance. Good luck and all the best ( surely it couldn't have been Virgin which turned you down for mobile phone  ). 

noclaf

Thanks Coachman12...to be clear re utilisation, my concern was that because I am using "greater" than 50% utilisation of my cc and over an extended period of time, that this would negatively impact my credit score. I previously had upto 3 credit cards on the go however my net utilisation % was proportionally lower against the combined limit of all 3 cc's.
No CCJ'S or past missed payments either and no other debt at the mo. I could pay of the cc now but would rather have the pleasure of seeing cash in the bank albeit its value being eroded by rubbish interest rates! That's for another day.
It wasn't Virgin, they will remain nameless but the irony is that I have a line with them already via work. I just didn't have the time or energy to ask why they rejected my request for a personal mob line so their loss and O2's gain!

[Deleted User]

As your debt is on a promo, it's not a major concern for lenders.

noclaf

I have less than 12 months on the 0%..will keep paying down and possibly may tsfr to another 0% though ideally should just clear it. We shall see how things look towards the end of this year.

coachman12

noclaf said:

I have less than 12 months on the 0%..will keep paying down and possibly may tsfr to another 0% though ideally should just clear it. We shall see how things look towards the end of this year.

All sounds OK, noclaf. No worries. Enjoy. Cheers