Debt advice (4 Viewers)

shmmeee · Oct 9, 2021

Grendel said:
Yes they will it takes the consumer side over big business

don’t take out lots of credit cards - I have a lower credit score and never defaulted on a thing in my life but it’s because it seems I’ve got several credit cards with big limits - around £10 grand even though I never use them

Credit score is based on available credit not how much you’ve used them. Overdrafts, flexible loans, credit cards all count for the max limit not the outstanding balance.

theory is you could access it tomorrow.

Grendel · Oct 9, 2021

shmmeee said:
Credit score is based on available credit not how much you’ve used them. Overdrafts, flexible loans, credit cards all count for the max limit not the outstanding balance.

thats what I mean - I had at one point £80,000 available and unused credit

shmmeee · Oct 9, 2021

Grendel said:
thats what I mean - I had at one point £80,000 available and unused credit

Yeah it’ll count against you. You’ll have a max amount of credit allowed and what % you are at of it. £80k in unused credit card or overdraft capacity is treated the same as an active loan with £80k balance remaining you’ve got out for that calculation I believe.

Evo1883 · Oct 9, 2021

What Is a Credit Utilization Rate?

Your credit utilization rate is the percentage of your revolving accounts’ balances that you’re using.

www.experian.com

Evo1883 · Oct 9, 2021

I believe If grendel has credit cards that he doesn't use that are over 6 years old , that's a positive on his score .

When I look Into my credit report, they always advised me to have accounts open for over 6 years , as it looks good on you.

I think if he's not using it and it's over 6 years old his credit utilisation will be low and his score will be positively impacted

My credit utilisation before paying off my CC was 130% , which is a negative

Obtaining lots of new cards is initially also bad for your score

robbiekeane · Oct 10, 2021

shmmeee said:
Yeah it’ll count against you. You’ll have a max amount of credit allowed and what % you are at of it. £80k in unused credit card or overdraft capacity is treated the same as an active loan with £80k balance remaining you’ve got out for that calculation I believe.

Don’t think that’s true

shmmeee · Oct 10, 2021

robbiekeane said:
Don’t think that’s true

That’s what I was told by mortgage advisors last year. If not then fair enough.

Kneeza · Oct 10, 2021

Houchens Head said:
Just going on from my post above, I'm now nearly 69, living on a state pension and receive disability benefits. I live in a social housing bungalow with zero savings. We bought our furniture from charity shops when we moved to Malvern. I'd love to see them get anything out of me!

Best way to be.
My late father-in-law retired at 65, subsequently sold his house, and spent his money travelling.
He passed last year at 99 and 11 months, having still been visiting his son in NZ in his mid nineties.
He lived in a sheltered flat in Evesham that only cost him a couple of hundred a month due to charitable support, and only had a few bits of second-hand furniture and a brand-new mobility scooter to his name.
But, he loved his debt-free life.
Bless his cotton socks.

Flying Fokker · Oct 10, 2021

Houchens Head said:
Just going on from my post above, I'm now nearly 69, living on a state pension and receive disability benefits. I live in a social housing bungalow with zero savings. We bought our furniture from charity shops when we moved to Malvern. I'd love to see them get anything out of me!

Living the dream. So is your mattress stuffed with £20 notes? I guess nobody can take what you haven’t got!

Debt advice (4 Viewers)

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What Is a Credit Utilization Rate?

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