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Quick Utilisation Question
Superhoopza
Posts: 604 Forumite
in Credit cards
Probably a question that's been asked plenty.
All things being equal (amount of credit available, debt, income etc), are lenders more likely to make decisions based on your overall credit utilisation rate or individual provider utilisation rates?
I'm clearing down my highest interest bearing cards first (based on APR) and will continue to do that despite the answer to this question, but would I be looked upon less favourably for having some cards at say 60% utilisation and others at 90%+ , giving an average of say 75%-80% (I know still high but all these will drop with time). Or am I better to have all the cards at a similar percentage utilisation?
Thanks
All things being equal (amount of credit available, debt, income etc), are lenders more likely to make decisions based on your overall credit utilisation rate or individual provider utilisation rates?
I'm clearing down my highest interest bearing cards first (based on APR) and will continue to do that despite the answer to this question, but would I be looked upon less favourably for having some cards at say 60% utilisation and others at 90%+ , giving an average of say 75%-80% (I know still high but all these will drop with time). Or am I better to have all the cards at a similar percentage utilisation?
Thanks
0
Comments
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Your overall utilisation and indebtedness will be the main thing.1
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Thank you0
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If you have a lot of debt on cards you're not paying off in full every month, it's unlikely you would get more credit e.g. if you are asking about consolidation. Utilisation is an issue when you are holding debt, when it's say 0% balance transfer or a card paid off in full every month, it doesn't really matter
Sam Vimes' Boots Theory of Socioeconomic Unfairness:
People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.
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