What is the ideal credit card utilisation percentage?

Malcolm_Howes

Hi,
I am worried that I perhaps have too much available credit on my credit cards and wonder which is most beneficial when applying for a mortgage.  Should I go for high available credit with not much utilisation or should I try to reduce the available credit (by cancelling a couple of cards or having the limits reduced), which would of course increase my utilisation.

[Deleted User]

High utilisation makes you look bad but at the same time, lenders have their own scoring - long term stability (e.g. a well maintained old card) looks better than having only a couple of new cards with low balances. If you pay off every month in full, what does it matter how much you carry vs the benefits of showing you can borrow and repay responsibly? It would be far worse to have low utilisation but carry a balance every month like you can't afford the lifestyle you live.

Thrugelmir

How many accounts, how much credit facility do you actually need?  Easier to approach the task from the direction of good housekeeping than worrying about what lenders may think. In the main there's cheaper forms of finance for large purchases rather than credit cards. 

[Deleted User]

If you're  clearing in full, utilisation isn't an issue.

If you're not, that needs to be your focus.

Malcolm_Howes

Thanks guys, all good food for thought