Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • JC2014
    • By JC2014 14th Mar 17, 7:59 AM
    • 2Posts
    • 0Thanks
    7 credit cards, High utilisation, Best way to clear?
    • #1
    • 14th Mar 17, 7:59 AM
    7 credit cards, High utilisation, Best way to clear? 14th Mar 17 at 7:59 AM
    Hi there,

    I'm need of some advice and thoughts please.

    I presently have 7 credit cards all close to their credit limit. I am shortly going to be in possession of a large sum of money and considering doing the following.

    1. Paying them all off
    2. Cancelling some

    The question is what is the best strategy to boost my credit rating. How many should I keep. For all that I keep should I be spending a small amount like 10 or 20 on each and clearing each month. I've read about 25-30% utilisation being the sweet spot for lenders and also having a larger credit limit being better then a smaller limit. My concern is if I clear the cards I could not afford to spend 30% across all cards and then pay them back but don't want to get rid of too many whereby my credit limit looks unfavourable.

    Lastly once I have my strategy in place will 6 months of Saint like spending increase my credit rating significantly or will it take more time for my score to improve?

    Thank you in advance.
Page 1
    • nic_c
    • By nic_c 14th Mar 17, 8:18 AM
    • 1,447 Posts
    • 792 Thanks
    • #2
    • 14th Mar 17, 8:18 AM
    • #2
    • 14th Mar 17, 8:18 AM
    There are many threads by people asking similar questions if you search.

    You are obsessing too much on the score. I can't see any creditor refusing you because you spend too little on a card!!
    • Ben8282
    • By Ben8282 15th Mar 17, 2:05 AM
    • 2,281 Posts
    • 1,016 Thanks
    • #3
    • 15th Mar 17, 2:05 AM
    • #3
    • 15th Mar 17, 2:05 AM
    If you have managed to get 7 credit cards then your credit rating can't be all that bad.
    Any specific problems you are having at the moment are being caused by the high utilisation ratios and balances.
    If you have the ability to pay them all off then do so.
    Your credit rating will immediately improve once the CRA's have updated.
    With regard to use and cancellation, this is not an easy question to answer without more specific information as to the credit limit, age of account and type of card (mainstream, sub-prime etc) for each account.
    7 cards is quite a lot - although in the past I have held more - so closing some wouldn't be a bad idea.
    Yes, it will look good to spend and repay in full every month and, if you do keep all 7 cards, it would probably be better to use them all rather than leave several unused.
    As to how much should be spent, I have ever understood this idea of spending a 'small amount' and repaying in full every month. There is nothing wrong with spending a large amount and repaying in full either; in fact, so long as you don't spend extra just for this purpose, it will show lenders that you have money to spend and will probably put a reasonable amount of spend through their card. Try to keep the reported balances within the ratio that you have suggested or lower. Unless your cards are low limit cards that shouldn't really be too much of a problem but remember that if you pay in full but don't pay until the payment due date, then the reported balance will be almost 2 months spend.
    The score is not really worth paying attention to. It is the information on your files which matters.
    You haven't said why you actually want to improve your score. You should try to tailor you credit files in order to make yourself attractive for the product that you actually want to obtain.
    Last edited by Ben8282; 15-03-2017 at 2:08 AM.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,783Posts Today

4,562Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin