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Too much of a good thing.

3 replies 239 views
Hey Everyone,
The OH and I have started looking into moving to a bigger house. She currently has a mortgage and great credit history. 
While I have never had any defaults or CCJ's and I am ok at managing my finances I do have three credit cards with a limit around 31k and 3k on one from my season ticket at 0% (have added the refund into my stocks and shares as it earns me some extra money)

I have seen others mention that having too much credit available on credit cards can be seen as a negative impact when making a mortgage application. Currently I have one with the bank that is years old, one I use for 0% foreign fees when on holiday and one I keep for work expenses (personal card but is easier)

Should I look to lower the limits on these to something sensible (say 3-4K each opposed to nearly 11k) or would this impact the credit report as we are looking to apply in the next 2-3 months. I do have a good credit report (according to Credit Karma, clearscore and mse credit check) but would hate to be turned down because of something I could have fixed.

Thanks for the Advice :)


  • jamielutz1987jamielutz1987 Forumite
    296 posts
    100 Posts Name Dropper
    The 3k balance that you carry will reduce your affordability slightly.

    Having unused credit cards as described in your post will have no noticeable impact on your chances of getting a mortgage. In your place I wouldn't cut limits or anything.
  • Tilly111213Tilly111213 Forumite
    20 posts
    10 Posts
    I had the same advice from my broker - she said not to worry about unused credit cards...
  • kingstreetkingstreet Forumite
    36.4K posts
    Ninth Anniversary 10,000 Posts Photogenic I've helped Parliament
    Ignore the garbage credit reference agencies say about improving your "credit score." It has little/no effect on mortgage lending.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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