It appears my CC is affecting my credit score

ScoobyL73

Hi,
As above, I like to keep an eye on my Credit Score & quite regularly use Credit Karma. 
Every month, I try to use my credit card, even for only £30 fuel, etc and always pay off in full.
This month, it shows that my credit score has dropped by 7 points, and from what I can see it is because I don't have a high enough credit limit set on my only CC (Mbna) and that it is under utilised (0% as I always clear it in full).  My limit is currently set at £2500 &  Credit Karma are recommending a minimum of £4000.
Would I be better closing my credit card completely or should I request a credit limit increase ?
Many Thanks,
Dave.

[Deleted User]

Neither.

Ignore your comedy score. It's not relevant to anything. 

If you get offered increases then accept them, but otherwise just use your card as you want and clear in full each month.

Also consider having two or three other cards as back ups.

chanz4

didnt know they lend cash

Grumpy_chap

ScoobyL73 said:

My limit is currently set at £2500 &  Credit Karma are recommending a minimum of £4000.

And no vested interest in a company that sells credit cards in saying this?

Sharon87

Don't worry, mine got reduced to and there's no real reason for it - except maybe I used my AMEX a bit more last month (it also gets paid off in full each month). Credit score means nothing. Your credit file - how you use credit will be used to determine whether you'll be accepted for other credit. Credit score checking is pointless unless you want to apply for credit in the near future - such as a mortgage for example.

The_Fat_Controller

One of my made-up scores never varies.
The other two yo-yo a little every month and I get email notifications which I now delete without even reading.
That is despite all my cards being paid off in full every month, no credit applied for in the last year and income remaining exactly the same.

maisie_cat

I did the MSE credit score thingy and the only negative was that a snapshot of my CC balance showed a >50% of limit balance because I bought a cooker. I've had the card since 1998 and paid it off every month since then, I simply use it as a charge card. The system clearly can't tell the difference

D3xt3r5L4b

maisie_cat said:

I did the MSE credit score thingy and the only negative was that a snapshot of my CC balance showed a >50% of limit balance because I bought a cooker. I've had the card since 1998 and paid it off every month since then, I simply use it as a charge card. The system clearly can't tell the difference

It would show the statement balance as being reported hence the limit utilisation.

But you’re correct since it’s paid off each month in full it matters not. 

MalMonroe

My credit score is up and down like a yoyo and is different with all the credit agencies anyway. You could drive yourself crazy trying to adjust your scores.

As others advise, ignore it completely, it's irrelevant.

And if you don't want a limit increase, then don't accept one. 

I recently changed energy companies and got notifications from four credit agencies letting me know that there was 'a change on my credit report'. What do they want me to do? I don't really care any more, talk about big brother is watching you . . . it's totally ridiculous. 

MalMonroe

Sharon87 said:

Don't worry, mine got reduced to and there's no real reason for it - except maybe I used my AMEX a bit more last month (it also gets paid off in full each month). Credit score means nothing. Your credit file - how you use credit will be used to determine whether you'll be accepted for other credit. Credit score checking is pointless unless you want to apply for credit in the near future - such as a mortgage for example.

Even when you want to apply for credit such as a mortgage, credit score checking is pointless because no lender can see your score.

cymruchris

maisie_cat said:

I did the MSE credit score thingy and the only negative was that a snapshot of my CC balance showed a >50% of limit balance because I bought a cooker. I've had the card since 1998 and paid it off every month since then, I simply use it as a charge card. The system clearly can't tell the difference

I've been paying in full on all of my cards for a few years - yet keep getting flagged up as a high utilisation and a magical score that drops when I do so. I use mine the same way - spend to earn rewards like Amazon vouchers, and then pay in full. It's a shame that the magical score companies didn't look at the history to see that it's always paid in full following each statement cycle and incorporate that info into their mystical moving numbers.