Not using available credit

Nailsea86

Hi all. My credit file says I'm "not using the credit available" and that's negatively effecting my credit.

I have three credit cards I use and pay off in full every month. The only thing I can think of is a overdraft that I don't use. Could having an overdraft and not using it negatively effect my credit rating? 

Mark_d

This is unusual.  I also have a credit cards which I pay in full by DD each month, as well as an overdraft which I've never dipped into (I keep is as a safety net for unforeseen events).
Comments on my credit file say that I'm doing well for using between 1% and 25% of available credit.

born_again

Nailsea86 said:

Hi all. My credit file says I'm "not using the credit available" and that's negatively effecting my credit.

I have three credit cards I use and pay off in full every month. The only thing I can think of is a overdraft that I don't use. Could having an overdraft and not using it negatively effect my credit rating? 

Ignore it... Not using credit may effect the CRA made up number, but that means nothing to lenders.

All lenders are interested in is not missing payments.

Nailsea86

Mark_d said:

This is unusual.  I also have a credit cards which I pay in full by DD each month, as well as an overdraft which I've never dipped into (I keep is as a safety net for unforeseen events).
Comments on my credit file say that I'm doing well for using between 1% and 25% of available credit.

Yes, my credit file also says I'm doing well for using 1-25%...but then also says I'm not using credit. It's weird. 

sourcrates

Don`t take any notice of the messages the CRA`s bombard you with, regarding your credit file.

They do this to keep your interest in what is essentially a very boring subject.

They want you taking out new credit, or obsessing with your credit score, as they are credit brokers and collect a fee every time someone gets credit via their link, or sells you your credit score, its a business remember, that needs to make money.

Nasqueron

sourcrates said:

Don`t take any notice of the messages the CRA`s bombard you with, regarding your credit file.

They do this to keep your interest in what is essentially a very boring subject.

They want you taking out new credit, or obsessing with your credit score, as they are credit brokers and collect a fee every time someone gets credit via their link, or sells you your credit score, its a business remember, that needs to make money.

I think it would be more accurate to say

They do this to keep your interest in what is essentially a very boring subject. because they want you to pay for "score improvement" services!

As MSE always says - don't pay for something you can get for free  

CliveOfIndia

Nailsea86 said:

I have three credit cards I use and pay off in full every month. 

Do you wait for the statement to arrive and then pay in full?  Or do you clear them before the statement is produced?  If the latter, then this can make it look like you're not using the cards.  Not that it matters, although you're missing out on the benefit of building up a good credit history.

All that aside, as others have said, ignore what the CRAs think of you.  They're not the ones lending you money, so their opinion is irrelevant.