Score dropped after recommended credit usage

kimwp

Nasqueron said:

kimwp said:

If you want your utilisation rate to be under 10% (which is a good idea), would it not be easier to spend less than £100 on it each month and keep your current account at £300 plus outgoings for the month (£200 buffer plus £100 to pay off your credit card bill by direct debit)? You are making it very complicated. I had the highest available scores for years just putting my petrol on one of my cards and paying it off with the direct debit (I only use the other for spends abroad or in case my main bank has technical issues). (Not that the score is used for anything, but it's a good indicator of how a credit card/loan company will view you)

You could also see if they will increase the credit limit so that you normal monthly spend that you pay off in full is less than 10% of the limit.

Utilisation is irrelevant when paying the card off in full every month, lenders see you have spent on the card and paid off in full, lots of green ticks is good. The fake score might be affected by the utilisation numbers (though CRAs usually blather on about 25% or 30% not 10%)

Note also that the score is NOT an indication of anything, it does not indicate how a lender will see you, a thin credit file could be 999 with monthly mobile payments on time but no lending history but lenders will be less likely than someone with a score of 700 but with extensive good credit history

I think this statement re utilisation is a sweeping and unfounded statement unless you have knowledge of the industry. 

To be clear, I don't have intimate knowledge of the industry, but a low credit utilisation is generally understood to be an indicator of good money management - if you are consistently using a lot of your available credit, it indicates that you are in not managing your money well.

Looking at my credit record, the usage is reported as the amount owing on a certain date, it doesn't show zero despite the fact that I pay it off every month.

And I have three credit cards with very high utilisation (stoozing) and it notes that this doesn't look good to lenders and that I should try to bring this down. 

The mse credit club makes the same comments when I run a search there.

Since I started stoozing (borrowing on 0% credit cards and putting the cash in savings accounts), my credit score and 0% credit card availability has gone down - previously I could pretty much get any card I wanted, but now some of the 0% bt, zero fee cards are not available to me.

A new lender has access to all of the information that is used to calculate a credit score. 
They will make their decision on a number of things, their targets for each product, information from your credit history, so no, your credit score doesn't guarantee availability of a product, but it's a decent indicator, all other things being equal.

Nasqueron

kimwp said:

Nasqueron said:

kimwp said:

If you want your utilisation rate to be under 10% (which is a good idea), would it not be easier to spend less than £100 on it each month and keep your current account at £300 plus outgoings for the month (£200 buffer plus £100 to pay off your credit card bill by direct debit)? You are making it very complicated. I had the highest available scores for years just putting my petrol on one of my cards and paying it off with the direct debit (I only use the other for spends abroad or in case my main bank has technical issues). (Not that the score is used for anything, but it's a good indicator of how a credit card/loan company will view you)

You could also see if they will increase the credit limit so that you normal monthly spend that you pay off in full is less than 10% of the limit.

Utilisation is irrelevant when paying the card off in full every month, lenders see you have spent on the card and paid off in full, lots of green ticks is good. The fake score might be affected by the utilisation numbers (though CRAs usually blather on about 25% or 30% not 10%)

Note also that the score is NOT an indication of anything, it does not indicate how a lender will see you, a thin credit file could be 999 with monthly mobile payments on time but no lending history but lenders will be less likely than someone with a score of 700 but with extensive good credit history

I think this statement re utilisation is a sweeping and unfounded statement unless you have knowledge of the industry. 

To be clear, I don't have intimate knowledge of the industry, but a low credit utilisation is generally understood to be an indicator of good money management - if you are consistently using a lot of your available credit, it indicates that you are in not managing your money well.

Looking at my credit record, the usage is reported as the amount owing on a certain date, it doesn't show zero despite the fact that I pay it off every month.

And I have three credit cards with very high utilisation (stoozing) and it notes that this doesn't look good to lenders and that I should try to bring this down. 

The mse credit club makes the same comments when I run a search there.

Since I started stoozing (borrowing on 0% credit cards and putting the cash in savings accounts), my credit score and 0% credit card availability has gone down - previously I could pretty much get any card I wanted, but now some of the 0% bt, zero fee cards are not available to me.

A new lender has access to all of the information that is used to calculate a credit score. 
They will make their decision on a number of things, their targets for each product, information from your credit history, so no, your credit score doesn't guarantee availability of a product, but it's a decent indicator, all other things being equal.

You're confusing people carrying a balance and not paying off in full (and interest bearing not promotional rates) and card being paid off in full every month.

CC does not have "utilisation" if it's paid in full as the record shows you simply paid off in full every month. If you have a lot of spending to maximise say cashback but pay off in full, that is better than someone paying 5% of their limit but not clearing it.

CRAs love to bang on about utilisation, if you have BT cards you'll be well aware that you often have 90-95% of the limit - they make money from the gullible paying them for their "service" so of course they tell you to lower it - as it affects the score that.... they generate themselves lol

Credit score is not a guide or indicator of anything

kimwp

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

If you want your utilisation rate to be under 10% (which is a good idea), would it not be easier to spend less than £100 on it each month and keep your current account at £300 plus outgoings for the month (£200 buffer plus £100 to pay off your credit card bill by direct debit)? You are making it very complicated. I had the highest available scores for years just putting my petrol on one of my cards and paying it off with the direct debit (I only use the other for spends abroad or in case my main bank has technical issues). (Not that the score is used for anything, but it's a good indicator of how a credit card/loan company will view you)

You could also see if they will increase the credit limit so that you normal monthly spend that you pay off in full is less than 10% of the limit.

Utilisation is irrelevant when paying the card off in full every month, lenders see you have spent on the card and paid off in full, lots of green ticks is good. The fake score might be affected by the utilisation numbers (though CRAs usually blather on about 25% or 30% not 10%)

Note also that the score is NOT an indication of anything, it does not indicate how a lender will see you, a thin credit file could be 999 with monthly mobile payments on time but no lending history but lenders will be less likely than someone with a score of 700 but with extensive good credit history

I think this statement re utilisation is a sweeping and unfounded statement unless you have knowledge of the industry. 

To be clear, I don't have intimate knowledge of the industry, but a low credit utilisation is generally understood to be an indicator of good money management - if you are consistently using a lot of your available credit, it indicates that you are in not managing your money well.

Looking at my credit record, the usage is reported as the amount owing on a certain date, it doesn't show zero despite the fact that I pay it off every month.

And I have three credit cards with very high utilisation (stoozing) and it notes that this doesn't look good to lenders and that I should try to bring this down. 

The mse credit club makes the same comments when I run a search there.

Since I started stoozing (borrowing on 0% credit cards and putting the cash in savings accounts), my credit score and 0% credit card availability has gone down - previously I could pretty much get any card I wanted, but now some of the 0% bt, zero fee cards are not available to me.

A new lender has access to all of the information that is used to calculate a credit score. 
They will make their decision on a number of things, their targets for each product, information from your credit history, so no, your credit score doesn't guarantee availability of a product, but it's a decent indicator, all other things being equal.

You're confusing people carrying a balance and not paying off in full (and interest bearing not promotional rates) and card being paid off in full every month.

CC does not have "utilisation" if it's paid in full as the record shows you simply paid off in full every month. If you have a lot of spending to maximise say cashback but pay off in full, that is better than someone paying 5% of their limit but not clearing it.

CRAs love to bang on about utilisation, if you have BT cards you'll be well aware that you often have 90-95% of the limit - they make money from the gullible paying them for their "service" so of course they tell you to lower it - as it affects the score that.... they generate themselves lol

Credit score is not a guide or indicator of anything

Where do you think I am confusing carrying a balance and paying off in full?

I have a card that is paid off in full every month - the usage currently reported is approx £1500. (Broken drive shaft meant I had to join the AA and pay for the fix)

I also have cards that I am carrying a high balance on - the usage reported is the balance.

The mse credit club (afaik) doesn't make any money from telling me to reduce my utilisation rate. Neither does the one I use for free through NatWest.

surreysaver

Don't pay it off manually, just let the direct debit do its work.
If you continually pay it off manually and the direct debit isn't taken, the direct debit will eventually expire, and you'll think one month payment will be taken and it'll fail, resulting in a missed payment.
Just use and pay off your credit card how it's supposed to be used and paid off, and all will be well 

Nasqueron

kimwp said:

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

If you want your utilisation rate to be under 10% (which is a good idea), would it not be easier to spend less than £100 on it each month and keep your current account at £300 plus outgoings for the month (£200 buffer plus £100 to pay off your credit card bill by direct debit)? You are making it very complicated. I had the highest available scores for years just putting my petrol on one of my cards and paying it off with the direct debit (I only use the other for spends abroad or in case my main bank has technical issues). (Not that the score is used for anything, but it's a good indicator of how a credit card/loan company will view you)

You could also see if they will increase the credit limit so that you normal monthly spend that you pay off in full is less than 10% of the limit.

Utilisation is irrelevant when paying the card off in full every month, lenders see you have spent on the card and paid off in full, lots of green ticks is good. The fake score might be affected by the utilisation numbers (though CRAs usually blather on about 25% or 30% not 10%)

Note also that the score is NOT an indication of anything, it does not indicate how a lender will see you, a thin credit file could be 999 with monthly mobile payments on time but no lending history but lenders will be less likely than someone with a score of 700 but with extensive good credit history

I think this statement re utilisation is a sweeping and unfounded statement unless you have knowledge of the industry. 

To be clear, I don't have intimate knowledge of the industry, but a low credit utilisation is generally understood to be an indicator of good money management - if you are consistently using a lot of your available credit, it indicates that you are in not managing your money well.

Looking at my credit record, the usage is reported as the amount owing on a certain date, it doesn't show zero despite the fact that I pay it off every month.

And I have three credit cards with very high utilisation (stoozing) and it notes that this doesn't look good to lenders and that I should try to bring this down. 

The mse credit club makes the same comments when I run a search there.

Since I started stoozing (borrowing on 0% credit cards and putting the cash in savings accounts), my credit score and 0% credit card availability has gone down - previously I could pretty much get any card I wanted, but now some of the 0% bt, zero fee cards are not available to me.

A new lender has access to all of the information that is used to calculate a credit score. 
They will make their decision on a number of things, their targets for each product, information from your credit history, so no, your credit score doesn't guarantee availability of a product, but it's a decent indicator, all other things being equal.

You're confusing people carrying a balance and not paying off in full (and interest bearing not promotional rates) and card being paid off in full every month.

CC does not have "utilisation" if it's paid in full as the record shows you simply paid off in full every month. If you have a lot of spending to maximise say cashback but pay off in full, that is better than someone paying 5% of their limit but not clearing it.

CRAs love to bang on about utilisation, if you have BT cards you'll be well aware that you often have 90-95% of the limit - they make money from the gullible paying them for their "service" so of course they tell you to lower it - as it affects the score that.... they generate themselves lol

Credit score is not a guide or indicator of anything

Where do you think I am confusing carrying a balance and paying off in full?

I have a card that is paid off in full every month - the usage currently reported is approx £1500. (Broken drive shaft meant I had to join the AA and pay for the fix)

I also have cards that I am carrying a high balance on - the usage reported is the balance.

The mse credit club (afaik) doesn't make any money from telling me to reduce my utilisation rate. Neither does the one I use for free through NatWest.

You keep talking about utilisation like it's a thing - hence why it seems you are confusing them. Carrying a balance is a problem, simply spending and clearing in full every month is marked as a green tick, the utilisation is irrelevant as the balance is clear

When a product is free, you are the product

kimwp

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

If you want your utilisation rate to be under 10% (which is a good idea), would it not be easier to spend less than £100 on it each month and keep your current account at £300 plus outgoings for the month (£200 buffer plus £100 to pay off your credit card bill by direct debit)? You are making it very complicated. I had the highest available scores for years just putting my petrol on one of my cards and paying it off with the direct debit (I only use the other for spends abroad or in case my main bank has technical issues). (Not that the score is used for anything, but it's a good indicator of how a credit card/loan company will view you)

You could also see if they will increase the credit limit so that you normal monthly spend that you pay off in full is less than 10% of the limit.

Utilisation is irrelevant when paying the card off in full every month, lenders see you have spent on the card and paid off in full, lots of green ticks is good. The fake score might be affected by the utilisation numbers (though CRAs usually blather on about 25% or 30% not 10%)

Note also that the score is NOT an indication of anything, it does not indicate how a lender will see you, a thin credit file could be 999 with monthly mobile payments on time but no lending history but lenders will be less likely than someone with a score of 700 but with extensive good credit history

I think this statement re utilisation is a sweeping and unfounded statement unless you have knowledge of the industry. 

To be clear, I don't have intimate knowledge of the industry, but a low credit utilisation is generally understood to be an indicator of good money management - if you are consistently using a lot of your available credit, it indicates that you are in not managing your money well.

Looking at my credit record, the usage is reported as the amount owing on a certain date, it doesn't show zero despite the fact that I pay it off every month.

And I have three credit cards with very high utilisation (stoozing) and it notes that this doesn't look good to lenders and that I should try to bring this down. 

The mse credit club makes the same comments when I run a search there.

Since I started stoozing (borrowing on 0% credit cards and putting the cash in savings accounts), my credit score and 0% credit card availability has gone down - previously I could pretty much get any card I wanted, but now some of the 0% bt, zero fee cards are not available to me.

A new lender has access to all of the information that is used to calculate a credit score. 
They will make their decision on a number of things, their targets for each product, information from your credit history, so no, your credit score doesn't guarantee availability of a product, but it's a decent indicator, all other things being equal.

You're confusing people carrying a balance and not paying off in full (and interest bearing not promotional rates) and card being paid off in full every month.

CC does not have "utilisation" if it's paid in full as the record shows you simply paid off in full every month. If you have a lot of spending to maximise say cashback but pay off in full, that is better than someone paying 5% of their limit but not clearing it.

CRAs love to bang on about utilisation, if you have BT cards you'll be well aware that you often have 90-95% of the limit - they make money from the gullible paying them for their "service" so of course they tell you to lower it - as it affects the score that.... they generate themselves lol

Credit score is not a guide or indicator of anything

Where do you think I am confusing carrying a balance and paying off in full?

I have a card that is paid off in full every month - the usage currently reported is approx £1500. (Broken drive shaft meant I had to join the AA and pay for the fix)

I also have cards that I am carrying a high balance on - the usage reported is the balance.

The mse credit club (afaik) doesn't make any money from telling me to reduce my utilisation rate. Neither does the one I use for free through NatWest.

You keep talking about utilisation like it's a thing - hence why it seems you are confusing them. Carrying a balance is a problem, simply spending and clearing in full every month is marked as a green tick, the utilisation is irrelevant as the balance is clear

When a product is free, you are the product

Can you provide some evidence or experience that utilisation is irrelevant? 

MattMattMattUK

kimwp said:

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

If you want your utilisation rate to be under 10% (which is a good idea), would it not be easier to spend less than £100 on it each month and keep your current account at £300 plus outgoings for the month (£200 buffer plus £100 to pay off your credit card bill by direct debit)? You are making it very complicated. I had the highest available scores for years just putting my petrol on one of my cards and paying it off with the direct debit (I only use the other for spends abroad or in case my main bank has technical issues). (Not that the score is used for anything, but it's a good indicator of how a credit card/loan company will view you)

You could also see if they will increase the credit limit so that you normal monthly spend that you pay off in full is less than 10% of the limit.

Utilisation is irrelevant when paying the card off in full every month, lenders see you have spent on the card and paid off in full, lots of green ticks is good. The fake score might be affected by the utilisation numbers (though CRAs usually blather on about 25% or 30% not 10%)

Note also that the score is NOT an indication of anything, it does not indicate how a lender will see you, a thin credit file could be 999 with monthly mobile payments on time but no lending history but lenders will be less likely than someone with a score of 700 but with extensive good credit history

I think this statement re utilisation is a sweeping and unfounded statement unless you have knowledge of the industry. 

To be clear, I don't have intimate knowledge of the industry, but a low credit utilisation is generally understood to be an indicator of good money management - if you are consistently using a lot of your available credit, it indicates that you are in not managing your money well.

Looking at my credit record, the usage is reported as the amount owing on a certain date, it doesn't show zero despite the fact that I pay it off every month.

And I have three credit cards with very high utilisation (stoozing) and it notes that this doesn't look good to lenders and that I should try to bring this down. 

The mse credit club makes the same comments when I run a search there.

Since I started stoozing (borrowing on 0% credit cards and putting the cash in savings accounts), my credit score and 0% credit card availability has gone down - previously I could pretty much get any card I wanted, but now some of the 0% bt, zero fee cards are not available to me.

A new lender has access to all of the information that is used to calculate a credit score. 
They will make their decision on a number of things, their targets for each product, information from your credit history, so no, your credit score doesn't guarantee availability of a product, but it's a decent indicator, all other things being equal.

You're confusing people carrying a balance and not paying off in full (and interest bearing not promotional rates) and card being paid off in full every month.

CC does not have "utilisation" if it's paid in full as the record shows you simply paid off in full every month. If you have a lot of spending to maximise say cashback but pay off in full, that is better than someone paying 5% of their limit but not clearing it.

CRAs love to bang on about utilisation, if you have BT cards you'll be well aware that you often have 90-95% of the limit - they make money from the gullible paying them for their "service" so of course they tell you to lower it - as it affects the score that.... they generate themselves lol

Credit score is not a guide or indicator of anything

Where do you think I am confusing carrying a balance and paying off in full?

I have a card that is paid off in full every month - the usage currently reported is approx £1500. (Broken drive shaft meant I had to join the AA and pay for the fix)

I also have cards that I am carrying a high balance on - the usage reported is the balance.

The mse credit club (afaik) doesn't make any money from telling me to reduce my utilisation rate. Neither does the one I use for free through NatWest.

You keep talking about utilisation like it's a thing - hence why it seems you are confusing them. Carrying a balance is a problem, simply spending and clearing in full every month is marked as a green tick, the utilisation is irrelevant as the balance is clear

When a product is free, you are the product

Can you provide some evidence or experience that utilisation is irrelevant? 

It is impossible to prove a negative. Can you provide and evidence that utilisation is relevant? This should not include anything from the CRAs in their marketing pitch. 

kimwp

MattMattMattUK said:

kimwp said:

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

Nasqueron said:

kimwp said:

If you want your utilisation rate to be under 10% (which is a good idea), would it not be easier to spend less than £100 on it each month and keep your current account at £300 plus outgoings for the month (£200 buffer plus £100 to pay off your credit card bill by direct debit)? You are making it very complicated. I had the highest available scores for years just putting my petrol on one of my cards and paying it off with the direct debit (I only use the other for spends abroad or in case my main bank has technical issues). (Not that the score is used for anything, but it's a good indicator of how a credit card/loan company will view you)

You could also see if they will increase the credit limit so that you normal monthly spend that you pay off in full is less than 10% of the limit.

Utilisation is irrelevant when paying the card off in full every month, lenders see you have spent on the card and paid off in full, lots of green ticks is good. The fake score might be affected by the utilisation numbers (though CRAs usually blather on about 25% or 30% not 10%)

Note also that the score is NOT an indication of anything, it does not indicate how a lender will see you, a thin credit file could be 999 with monthly mobile payments on time but no lending history but lenders will be less likely than someone with a score of 700 but with extensive good credit history

I think this statement re utilisation is a sweeping and unfounded statement unless you have knowledge of the industry. 

To be clear, I don't have intimate knowledge of the industry, but a low credit utilisation is generally understood to be an indicator of good money management - if you are consistently using a lot of your available credit, it indicates that you are in not managing your money well.

Looking at my credit record, the usage is reported as the amount owing on a certain date, it doesn't show zero despite the fact that I pay it off every month.

And I have three credit cards with very high utilisation (stoozing) and it notes that this doesn't look good to lenders and that I should try to bring this down. 

The mse credit club makes the same comments when I run a search there.

Since I started stoozing (borrowing on 0% credit cards and putting the cash in savings accounts), my credit score and 0% credit card availability has gone down - previously I could pretty much get any card I wanted, but now some of the 0% bt, zero fee cards are not available to me.

A new lender has access to all of the information that is used to calculate a credit score. 
They will make their decision on a number of things, their targets for each product, information from your credit history, so no, your credit score doesn't guarantee availability of a product, but it's a decent indicator, all other things being equal.

You're confusing people carrying a balance and not paying off in full (and interest bearing not promotional rates) and card being paid off in full every month.

CC does not have "utilisation" if it's paid in full as the record shows you simply paid off in full every month. If you have a lot of spending to maximise say cashback but pay off in full, that is better than someone paying 5% of their limit but not clearing it.

CRAs love to bang on about utilisation, if you have BT cards you'll be well aware that you often have 90-95% of the limit - they make money from the gullible paying them for their "service" so of course they tell you to lower it - as it affects the score that.... they generate themselves lol

Credit score is not a guide or indicator of anything

Where do you think I am confusing carrying a balance and paying off in full?

I have a card that is paid off in full every month - the usage currently reported is approx £1500. (Broken drive shaft meant I had to join the AA and pay for the fix)

I also have cards that I am carrying a high balance on - the usage reported is the balance.

The mse credit club (afaik) doesn't make any money from telling me to reduce my utilisation rate. Neither does the one I use for free through NatWest.

You keep talking about utilisation like it's a thing - hence why it seems you are confusing them. Carrying a balance is a problem, simply spending and clearing in full every month is marked as a green tick, the utilisation is irrelevant as the balance is clear

When a product is free, you are the product

Can you provide some evidence or experience that utilisation is irrelevant? 

It is impossible to prove a negative. Can you provide and evidence that utilisation is relevant? This should not include anything from the CRAs in their marketing pitch. 

I'm not asking for proof, I'm asking for evidence.
Given that all the formally created advice (including on the mse main website and the mse credit club) is to keep utilisation low, presumably there is some knowledge or source of information that you and nasqueron are referencing to be so adamant in your position.

penners324

And all the advise is to clear the statemented balance by payment due date every month.