"over utilisation" of credit card and credit rating

maxine60

Hi all
We have a credit card that we use for most purchases each month and we always pay in full. However my credit scoring seems to get slightly affected as it only looks at much of the credit limit we spend and not the fact thatwei pay in full each month. this is frustrating. I am hoping my credit rating isn't affected in any way due to this?

Farway

Credit score is made up number, every lender has it's own criteria, there is not a "master list" that lenders refer to

Lenders use the credit reference agencies to see how your payments are, regular, yep, big tick there, arrears, nope, another big tick there, missed payments, nope, another big tick, court judgment, nope, another tick

The only thing to watch is what you owe & available credit, not how you spend it but how much you could spend it if you wanted to.

So if say the credit limit on every card was say 5K and you had ten cards your available credit is 50K, fine if your income is say 200K but not if it's 20K

bouicca21

I similarly pay practically everything on a credit card that gets paid off every month.  I actually have several other unused credit cards, the legacy of my MSE ways - putting major purchases on interest free deals.  So the amount of credit available to me is in theory quite large.

None of this seems to matter - I’ve never been turned down for anything, from a mobile phone contract to another interest free card.  After all, a credit rating is really only a reflection of whether we are actually in control of our finances.