CC Utilization 27-25% check

Dandytf

Is there any importance in reducing CC balances from 27-25%.
I've used lemon calculator to check value of this 2% difference, +3xx approx.
27% Utilisation I've referred to Experian report, I think it could be decent starting point.
Though is it important to achieve 25% rather than current 27%.
This is Non Pay in Full Every Time type request.

thanks mser's

MattMattMattUK

Dandytf said:

Is there any importance in reducing CC balances from 27-25%.
I've used lemon calculator to check value of this 2% difference, +3xx approx.
27% Utilisation I've referred to Experian report, I think it could be decent starting point.
Though is it important to achieve 25% rather than current 27%.
This is Non Pay in Full Every Time type request.

thanks mser's

Ignore the CRA made up scores, they are meaningless and the things that they tell you to do to improve your meaningless score are usually pointless, or sometimes even negative to how lenders perceive you.

You should aim to reduce your debt overall, you should be aiming to achieve 0% credit utilisation for credit cards. 

MEM62

As above, the target for credit utilization is zero.  Living on credit is never a good thing.   

steven141

I was also caught out by this years ago, I was told that if I had a specific amount of extra available credit available then my score would go up, I did increase my credit card credit limit but I don’t go anywhere near it. It makes no sense at all.

I also have had my score go down when I pay off my credit card but then if you use it then it goes up sometimes but sometimes goes down. It’s not consistent. I just ignore it now. 

CliveOfIndia

steven141 said:

I was also caught out by this years ago, I was told that if I had a specific amount of extra available credit available then my score would go up, I did increase my credit card credit limit but I don’t go anywhere near it. It makes no sense at all.

I also have had my score go down when I pay off my credit card but then if you use it then it goes up sometimes but sometimes goes down. It’s not consistent. I just ignore it now. 

Which is why you'll see stated on these boards, about a million times every week, that the score dished out by the CRAs means absolutely nothing at all.

In terms of credit utilisation percentages, it's very simple.  If you always repay in full each month then it matters not one jot how much of your available credit you're using.  If you don't repay in full, then the only sensible usage ratio is 0%.

The CRAs do like to make a big thing out of usage percentages, but since they're not the ones lending you money, what does it matter what they think?

Dandytf

steven141 said:

I was also caught out by this years ago, I was told that if I had a specific amount of extra available credit available then my score would go up, I did increase my credit card credit limit but I don’t go anywhere near it. It makes no sense at all.

I also have had my score go down when I pay off my credit card but then if you use it then it goes up sometimes but sometimes goes down. It’s not consistent. I just ignore it now. 

I can only confirm that new credit agreements often mean temp drop in Score.
It's not my score this time, more concerned if I need to add to existing CC balances.
Though maybe 1-3 repayments can be helpful towards reduction of Balances.

thanks mer's 

Dandytf

CliveOfIndia said:

steven141 said:

I was also caught out by this years ago, I was told that if I had a specific amount of extra available credit available then my score would go up, I did increase my credit card credit limit but I don’t go anywhere near it. It makes no sense at all.

I also have had my score go down when I pay off my credit card but then if you use it then it goes up sometimes but sometimes goes down. It’s not consistent. I just ignore it now. 

Which is why you'll see stated on these boards, about a million times every week, that the score dished out by the CRAs means absolutely nothing at all.

In terms of credit utilisation percentages, it's very simple.  If you always repay in full each month then it matters not one jot how much of your available credit you're using.  If you don't repay in full, then the only sensible usage ratio is 0%.

The CRAs do like to make a big thing out of usage percentages, but since they're not the ones lending you money, what does it matter what they think?

I've built up some small purchases, some tech others home Purchases.
I'm very hesitant  in making 'more' use of 0% offers whilst adding to Existing Balances.
Though there are very clear cost effective reasons to use latest offers.
It's the thought of Higher overall balances from other cards when I'm not going to view one or two 'Medium'High balances.
I've only until late June to decide.

CliveOfIndia

Dandytf said:

CliveOfIndia said:

steven141 said:

I was also caught out by this years ago, I was told that if I had a specific amount of extra available credit available then my score would go up, I did increase my credit card credit limit but I don’t go anywhere near it. It makes no sense at all.

I also have had my score go down when I pay off my credit card but then if you use it then it goes up sometimes but sometimes goes down. It’s not consistent. I just ignore it now. 

Which is why you'll see stated on these boards, about a million times every week, that the score dished out by the CRAs means absolutely nothing at all.

In terms of credit utilisation percentages, it's very simple.  If you always repay in full each month then it matters not one jot how much of your available credit you're using.  If you don't repay in full, then the only sensible usage ratio is 0%.

The CRAs do like to make a big thing out of usage percentages, but since they're not the ones lending you money, what does it matter what they think?

I've built up some small purchases, some tech others home Purchases.
I'm very hesitant  in making 'more' use of 0% offers whilst adding to Existing Balances.
Though there are very clear cost effective reasons to use latest offers.
It's the thought of Higher overall balances from other cards when I'm not going to view one or two 'Medium'High balances.
I've only until late June to decide.

I'm not quite sure I completely understand what you're saying.  But if you've got a balance on an interest-bearing card and you have the option to shift it to a 0% card then it makes eminent sense to do so.

With 2 major caveats.  Firstly, you must have the funds available to repay the full balance on the new card when the promotional rate expires.  Secondly, don't shift the balance off the interest-bearing card then merrily go out spending on it again - unless you're able to repay in full every month whilst still having the money set aside to clear the 0% card when the time comes

Dandytf

My 'concern' One 12 month offer existing Banking CC.
Thinking ahead I could be untentionally placing more credit to existing balance albeit 0% up to 12 months.
This could become 'forced' consolidation loan type status if I fail to repay total balance across whatever timescales banks use.
Haven't even used Calculator yet to test some new Min repayments before checking above minimum repayments.
I'm not convinced 0% in my instance is what it was once and maybe best to continue at least during '24.
I have at least 3 credit agreements expiring mid '25 -at least 3 -not expensive repayments though genuine additional funds free up to use with CC's.

Dandytf

thanks mser's I've gone off topic since utilization check.
I can continue via correct board, though maybe best I at least check lemon calculators again.
I find it easier to view reducing medium/smaller balances even when paying interest.
Rather than much larger balance inc' 0%. 

Nasqueron

You have been told the answer to this question before repeatedly, now you are back with the same question - utilisation is a CRA hot button, in the real world, your total debt, interest and ability to pay is more of the issue.

You had an EV with finance yet want to change it to another, MacBook on finance, kitchen on finance, windows and door on finance, plus whatever else, yet you're on 1/2 hours due to illness and in receipt of benefits. You should simply look to pay off your debt as quickly as possible instead of trying to worry about % of available credit.