Credit Card Limit and Spending

Gherkin1992

Hi. 

I have a credit limit of £3000 and a few months back I spent around £5000 on my credit card over the course of the monthly cycle. I always spend on it abroad as I was told it was a good option. Then had to pay for some personal stuff in the same cycle. I was paying the card down throughout the month as I had money I had saved up for these expenditures. 

I didn’t exceed my credit limit at any point and I have no fees or charges, or notifications from my bank about it. My Experian credit report is shows the credit limit as 3000, spend as 5000, balance as 0 for that month (paid in full before the statement date). 

Will it look bad to a mortgage lender that I spent a lot in this in this way even though I had the money saved up and the balance was fully paid before the statement date so the balance was 0? I’ll be applying in the next couple of months 

MorningcoffeeIV

No.                    

la531983

I use a credit card for all of my monthly spending and pay each transaction off the same day, so at the end of the day my balance is essentially £0. I maybe spend thousands a month this way, well above the credit limit. The amount you actually spend on a card isnt reported, merely the balance at any given point in time (usually the monthly statement date).

They wouldnt even know.

Gherkin1992

la531983 said:

I use a credit card for all of my monthly spending and pay each transaction off the same day, so at the end of the day my balance is essentially £0. I maybe spend thousands a month this way, well above the credit limit. The amount you actually spend on a card isnt reported, merely the balance at any given point in time (usually the monthly statement date).

They wouldnt even know.

Thanks yeah that’s what I do too I was just concerned that on the credit report I accessed from Experian you can see the “amount spent” and it would be over the limit. So lenders probably don’t see that?

la531983

Gherkin1992 said:

la531983 said:

I use a credit card for all of my monthly spending and pay each transaction off the same day, so at the end of the day my balance is essentially £0. I maybe spend thousands a month this way, well above the credit limit. The amount you actually spend on a card isnt reported, merely the balance at any given point in time (usually the monthly statement date).

They wouldnt even know.

Thanks yeah that’s what I do too I was just concerned that on the credit report I accessed from Experian you can see the “amount spent” and it would be over the limit. So lenders probably don’t see that?

I only ever use Clearscore (Equifax) and on each card it only says CURRENT BALANCE and CREDIT LIMIT. Neither relate to the amount spent in a month.
And its not as if its being spent and not paid, lenders are aware people like to use cards for points, cashback etc.