Do lenders see total credit and spent ratio?

stewartwilliams

Not sure if this is obvious, but say:

I have one card with a £2k limit.
I have a second card with a £2k limit.

I spend £3k across the cards on a holiday, so I'm utilising 75% of my available credit.

If credit card one gives me a credit limit increase to £4k, then I'm utilising 50% of my available credit limit.

Say i want to apply for a card that has a balance transfer at 0% for 12 months or so.
Would the credit card provider see a 50% instead of 75% available and look at the favourably?

(Clearing one card at present as the other has a better interest rate and doesn't charge FX fees).

Brie

What they see for each individual card is the credit limit (so £2k on each) and then how much money outstanding.  (so £1500 each).  So no percentages.  And it will indicate how much you are reducing your totals by each month.

So if you spend £1500 on both but pay them off in full then it will show as 0 owing.

I have never seen a percentage of use on any credit report.  

A potential new creditor will look at everything that's on the report not just your cards.  So your mortgage and how much you owe and how much it's reducing each month.  Your phone contract.  Your monthly payments for your car/house insurance.  Any CCJs.  If you're registered to vote.  

born_again

They look at available credit (not utilisation) against income. Then take into account their internal lending scoring & then their risk level. Which will change as often as the wind at times.