Credit Card increase with upcoming re-mortgage


Hi all,

Overall I have the below credit card balances…

VirginMoney: 5,000 of 8,000 credit limit

MBNA: 7,200 of 8,000 limit

Tesco Bank: 3,420 of 3,800 limit

I also have a 3,000 nationwide overdraft but do not use any of it.

The CC debts stem from previous years of spending more than was coming in, but I’ve since wised up and now paying 600/ month off without any further spending.

VM is 0% until Aug 2018, Tesco 0% until Dec 2018 and MBNA 0% until March 2020.

My credit file is generally pretty good; no recent searches, been on electoral role for 2+ years, never missed a CC or mortgage payment. The main negative is my credit utilisation (roughly 79% of CC limits or 69% if you include the unused overdraft in this figure).

I earn 41,000 plus usually a (non guaranteed) bonus of around 10%.

I received an email from MBNA today saying my credit limit was increasing to 11,500. Yes this will make my credit utilisation slightly better (67% of CC or 59% of CC & OD limits) but I’m concerned this provides me with more available credit which may reflect badly.

My initial 2yr fix mortgage is finishing in July so will be needing to shop around for another deal, so just wondering if anyone had any advice on whether I should accept or decline the MBNA credit limit increase? Or potentiomally am I overthinking it and the impact will be negligible for the upcoming mortgage decision?

Interested to hear any feedback, thanks in advance


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