Available Credit vs Total Credit

YourUsername Forumite Posts: 10
First Post
edited 13 January at 5:26PM in Credit cards
Hypothetical limits for the purpose of the question, accurate used percentages:

- Credit Card A: £10k, 95% used
- Credit Card B: £8k, 95% used
- Credit Card C: £12k, 95% used
- Credit Card D : £30k, 0% used

Card A-C are 0% APR, Card D is 20% APR

Assuming min payments are met, no bad marks against name etc. To improve credit limit potential for card E (0% APR), should you:
A) Close card D, wait a few months. Total credit is reduced to £30k, used credit is 95%. Apply for card E
B ) Apply without closing card D. Total credit is £60k, used is 50%

Which is best, A or B? 


  • vestrit
    vestrit Forumite Posts: 11
    10 Posts
    I assume the answer is B, because the credit utilisation ratio is much lower, hence a better credit score.
    That said, as a rule of thumb, lenders like it to be under the 30%.
  • Martico
    Martico Forumite Posts: 810
    500 Posts First Anniversary Name Dropper
    I'd go for B, purely on the fact that they may just offer you another 0% deal a few months' down the line
  • Nebulous2
    Nebulous2 Forumite Posts: 4,987
    Tenth Anniversary 1,000 Posts Name Dropper
    edited 14 January at 8:22AM
    B any day for me. I've had substantial available credit for years and it has never prevented further acceptance. I'm lax with closing cards, but certainly wouldn't do so until a replacement was up and running. 

    Both could be a tough ask, depending on your income, because of the debt you are carrying. It would also depend on any other debt, such as car finance or loans.

    Make sure there is a plan to pay it off, if the 0% merry-go-round comes to an end.

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