Available Credit vs Total Credit

YourUsername

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

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

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

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.