Ideal Debt to Income Ratio for Credit Score/ Increasing existing credit limit

ChiomaC

I currently plan on getting a mortgage in the next 8-12 months. I occasionally check my credit score on 2 different sites. On the details of my credit report/suggested ways to improve my score, 1 site suggested I increase my credit limit by maybe requesting a higher credit limit on existing accounts, while an affordability analysis on the second site says my low debt to income ratio is vey good.

I currently have 2 credit cards- one from my bank and a rewards credit card. I am quite disciplined, do not spend beyond my means and pay off my debts in full and on time. I got the credit card from my bank just for the sake of building a credit record and got the rewards credit card for the perks it offers. I have recently been invited by the rewards card to increase my credit limit and have the following questions:

1) What is the ideal debt to income ratio so I know if accepting this higher credit limit will impact my chances of getting a mortgage in the next 8-12 months (the 2 sites mentioned above seem to have different views on this)
2) Since it was the rewards card inviting me to increase my credit limit and not me applying, will accepting this offer appear as a hard search on my file and reduce my credit score in the short run?
3) What impact will reducing the credit limit on my bank credit card have on my score, considering I prefer to use my rewards cards for obvious reasons and would rather have a higher credit limit on my rewards card?

[Deleted User]

What limits and debts do you have? What rates are the debts at?

Ignore the score and suggestions for changing it. It has no role in lenders deciding whether to give you credit or not.  As a general guide, accept any limit offers and reduce the debt.

Swoosh84

Would not worry about the score too much, your score will differ between credit report providers and any mortgage lender will have their own 'score' on you. 

So long as you are paying your credit cards off monthly and in full any mortgage provider will be happy with this.

On one of my reports, I always receive a message that my credit card utilisation is too high (its currently 28% odd). They say anything over 25% is bad. On another one of my credit reports with another provider I get the message saying my credit utilisation is perfect as its under 30%. But I only have one card with a balance due on it and this is 28% of the credit limit of this specific card. Overall, I have 5 cards and my credit utilisation over the piece is around 4% so would not read too much into what the reports are saying

Accepting the offer of increasing the limits on your cards won't impact your credit report negatively, will have a small positive effect.

Definitely avoid applying for any new credit cards, this will show as a hard search and have a negative impact.

ChiomaC

Deleted_User said:

What limits and debts do you have? What rates are the debts at?

Ignore the score and suggestions for changing it. It has no role in lenders deciding whether to give you credit or not.  As a general guide, accept any limit offers and reduce the debt.

I have a limit of £2000 on the bank card and £1500 on the rewards cards. I will have to check the rates because I don't bother with those as I ensure to spend only what I can repay monthly. 

[Deleted User]

If you're not revolving the debt, then utilisation doesn't matter as you're not demonstrating any reliance on credit.