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Not using available credit

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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? 

Comments

  • Mark_d
    Mark_d Posts: 2,427 Forumite
    1,000 Posts Second Anniversary Name Dropper
    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
    born_again Posts: 20,508 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    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.
    Life in the slow lane
  • Nailsea86
    Nailsea86 Posts: 2 Newbie
    First Post
    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
    sourcrates Posts: 31,601 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    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’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Nasqueron
    Nasqueron Posts: 10,745 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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 :) 

    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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