Credit Card Eligibility

thegentleway

Hi, I would like to improve my credit card eligibility. My credit reports are excellent (just been offered increased limit by Nationwide) apart from high credit card utilisation due to stoozing.
Credit Karma suggest I should lower my total credit utilisation from 37% to 25%. Interestingly it has a green line at 25% for each credit card, and amber on at 76%. On card is above 76%. ClearScore's insight is to not use more than 50% for each credit card.

I've only green smily faces on Experian and no suggestions but I did see somewhere that people should keep the total amount they owe across all of their credit accounts (excluding mortgages) below £15,000 and that as a rule of thumb, a credit utilisation below 60% is often seen by lenders as a positive.
Anybody know which is more important? Total credit utilisation vs individual credit card utilisation?

I've also seen that MSE's tip #27 is to cancel unused credit and store cards. I've got 8 credit cards which I presume is a bit excessive. Quite happy to close up to 4 as I don't use them but that would obviously increase my credit utilisation so I'm guessing it's better to keep them?
Finally, I've already got a Sainsburys credit card. Can I apply for a second one or do I need to close the first one?
Thanks

[Deleted User]

Ignore any suggestions given by the CRAs or MSE. They're not relevant and in some cases, completely wrong.

What are your total limits and balances?

What rates are they at?

What's your income?

thegentleway

Deleted_User said:

Ignore any suggestions given by the CRAs or MSE. They're not relevant and in some cases, completely wrong.

What are your total limits and balances?

What rates are they at?

What's your income?

I've got two 0% interest: one at 99% limit and one at 30%.
Two at unknow interest (they both get paid off in full every month) at 31% and 1% limit.
Gross income is about £5k more than total credit.

[Deleted User]

That's four cards. You said you had eight.

thegentleway

Deleted_User said:

That's four cards. You said you had eight.

I don't use the other 4. The limits are £2k, £4k, £4.9k, and £12.2k.

[Deleted User]

It doesn't matter if they're used. They still add to available credit.

You might want to close a couple of the more useless accounts if that's taking you far beyond your income.

thegentleway

Deleted_User said:

It doesn't matter if they're used. They still add to available credit.

You might want to close a couple of the more useless accounts if that's taking you far beyond your income.

Gross or net income?

[Deleted User]

Gross.       

thegentleway

Deleted_User said:

Gross.       

My gross income is already larger than total credit limit 

femalemonarchfemalecanine

I've got over twice my gross income in credit cards limits, and just got another BT card with £6500 limit. Some of my cards are over 75% used some are not used at all, overall I'm at 26% of my limit, which will soon be below the 'magic' 25%
Does it matter? who knows, my credit scores fluctuate either way for any reason or none, and in spite of the cras 'nagging' me about % use it doesn't seem to be an issue to lenders.

Grumpy_chap

thegentleway said:

I did see somewhere that people should keep the total amount they owe across all of their credit accounts (excluding mortgages) below £15,000

How can any such limit be expressed as a total amount?
Total credit (excluding mortgage) of £15k is entirely different for someone with salary of £100k or someone with salary of £30k.
Other liabilities have a bearing on the significance of total credit £15k and also the form of the £15k credit.  Very few brand new cars would be sold if people adhered to the £15k credit cap.  On the other hand, £15k on a credit card would be scary.