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    • DrSpendLittle
    • By DrSpendLittle 2nd Oct 17, 11:55 PM
    • 293Posts
    • 1,026Thanks
    Credit Card Utilisation Query
    • #1
    • 2nd Oct 17, 11:55 PM
    Credit Card Utilisation Query 2nd Oct 17 at 11:55 PM
    Hiya, I'm a Debt Free Wannaber and maintain a diary on that board.

    However, I have a specific credit card question that I'm looking for some advice / guidance on. Its about credit card utilisation. I'm moving house in the new year and will be looking to get an AIP / mortgage (second stepper). Thus, I'm trying to get my financial act together.

    My current credit card debt is fairly imbalanced across my two cards.

    CC1 was paid down this month by £600 to avoid interest charges as my 0% deal ran out but is now 0% until April 2018. The current balance is £399.10 with a limit of £11,750 so has a really low credit utilisation rate.

    CC2 is on 0% until June 2019. The current balance is £8527.15 with a limit of £10,450 so has a relatively high credit utilisation rate.

    I want to get an AIP in the new year as we're planning to move and I know that credit utilisation is something that they look at (its part of your credit score) but no one really knows how they use it.

    My overall credit utilisation exc. overdrafts is roughly 37% and inc. overdrafts is 35%.

    However, my CC2 credit utilisation is sitting at 82%

    I don't want to pay any balance transfer fees BUT my question is:

    Do I need to shift my debt around so my individual card balances are more evenly spread?


    Am I overthinking all this and should I just focus on paying off my debts as planned which, by January, my balances should be CC1 £249.10 and CC2 £5777.15

    Thoughts welcome!
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £2,529.99/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £1,263.28/£1,894.92
    Emergency Fund: £329.81/£500 (65.96%) | Total Debt Repayments: £5,359.34/£12,585.14 (42.58%) | LBM Debt Exposure: £13,915.17 | Average Monthly Repayment: £836.17 | Outstanding Debt: £7,225.80 | DFD: 30/09/18
Page 1
    • celticbhoy1967
    • By celticbhoy1967 3rd Oct 17, 12:25 AM
    • 7 Posts
    • 1 Thanks
    • #2
    • 3rd Oct 17, 12:25 AM
    • #2
    • 3rd Oct 17, 12:25 AM
    hi dr,

    iam no expert on this by any manner but from what ive been reading on my own credit report is that lenders may be more favourable if the utilization is below 60% so would maybe concentrate on getting the 82% down below 60% as some may look at this as money mismanagement, but if its a consistant level across the 2 then that would look favourably for you i would imagine and getting more credit by transferring would that not add more searches to your credit file, would this not affect you when trying to get AIP (iam sure the experts willl answer that one)...hopefully somone can provide you mith more expert guidance on this as iam in a similar situation myself

    Kind Regards

    • zx81
    • By zx81 3rd Oct 17, 5:33 AM
    • 17,251 Posts
    • 18,338 Thanks
    • #3
    • 3rd Oct 17, 5:33 AM
    • #3
    • 3rd Oct 17, 5:33 AM
    Just look to pay it down overall.
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