@Chris679 wrote:Couple problems with this way of thinking:
1-Credit card companies don't need you to stay under any magic threshold of utilization. They want you to use the card. Forums like this get people paranoid and they think they have to do that. Feel free to max the card out and PIF every month and watch the CLI pile up. Utilization can be an issue from a lender standpoint only if you are carrying large balances long term.
2-if someone decides that they don't want to use a card to get a CLI and the company won't give one without use how is that the CCCs fault? I dont blame either side but people are on here daily bashing these companies demanding CLI like it's their birth right when they probably never use the card.
Good points.
I agree about the UTI... it's forums like this that have people paranoid and in some cases OCD about their UTI.
The only time UTI matters is when you are prepping for an app spree, car loan, mortgage... etc... otherwise it doesn't matter. Yeah your scores might bounce around a bit if you carry balances but FICO has no memory and points lost are gained back when balances go down.
I gardened a year prior to my spree last week... I opened 4 accounts and closed 4 accounts that I no longer needed. I have no plans to app for anything in 2015 other than a possible vehicle trade... and that will be 1 TU pull from BECU. When I'm ready to do that I'll play the UTI game to get a few extra points. Until then, I don't care.
I lost 9 points off EQ for a new account and 2 INQs. I gained 6 on TU... LOL.... I'll probably lose/gain more when the other 3 accounts hit my report.
OMG the world is gonna end!
@Anonymous wrote:
@Chris679 wrote:
@wacdenney wrote:You need a higher limit to AVOID running your balance up. High Util is a NEGATIVE. Any recon analyst will you tell you this.
No I am NOT going to utilize all my limit on ANY of my cards. For me personally I don't like going over 10% on any given card. I do go as high as 20% to 30% occasionally if I have a good 0% intro offer and need to carry a balance but no way I'm going over that. High utilization being a negative is the CCC's idea. If I have a $1500 limit then I can comfortably run $150 bucks regularly through the card. That's the way THEY have the game setup to work.
So yeah... A small Crap limit means the card isn't going to get used. I don't have time or desire to make multiple payments every month. No decent CL = No use. That's the way they decided it works. It wasn't my idea.
Couple problems with this way of thinking:
1-Credit card companies don't need you to stay under any magic threshold of utilization. They want you to use the card. Forums like this get people paranoid and they think they have to do that. Feel free to max the card out and PIF every month and watch the CLI pile up. Utilization can be an issue from a lender standpoint only if you are carrying large balances long term.
2-if someone decides that they don't want to use a card to get a CLI and the company won't give one without use how is that the CCCs fault? I dont blame either side but people are on here daily bashing these companies demanding CLI like it's their birth right when they probably never use the card.
Perhaps, but they don't like it when you max out either.
Sure they do. Why else would AMEX boost my $2k Delta Gold card to a $3k CL on an auto-CLI after I ran it up close to $2k open balance?
All you worry worts thinking a $300 CL is useless, it's useable up to $290, then you pay it down and use it up to $290 again. It's a freaking transaction card, it is not some prize you put on the mantle at home to admire, or think it's going to blow up if you charge 95% of it. ("Someone is going to call from CapOne because I just ran the CL up to $290 on this $300 card!!!") CLI will come from that usage. When the CLI gets so large you can't bump up against it, then your usage utilization naturally becomes a smaller percentage of the limit.
@Anonymous wrote:
@NRB525 wrote:All you worry worts thinking a $300 CL is useless, it's useable up to $290, then you pay it down and use it up to $290 again. It's a freaking transaction card, it is not some prize you put on the mantle at home to admire, or think it's going to blow up if you charge 95% of it. ("Someone is going to call from CapOne because I just ran the CL up to $290 on this $300 card!!!") CLI will come from that usage. When the CLI gets so large you can't bump up against it, then your usage utilization naturally becomes a smaller percentage of the limit.It IS useless.
lol
Perfectionist.
By that logic, someone just starting out in life should not buy a used car to get to their job, they should just walk to work. Then, when they hit the big time, and finally get the big raise they really deserve, they can buy a new car.
Is usable. At $300. 
@NRB525 wrote:
@Anonymous wrote:
@NRB525 wrote:All you worry worts thinking a $300 CL is useless, it's useable up to $290, then you pay it down and use it up to $290 again. It's a freaking transaction card, it is not some prize you put on the mantle at home to admire, or think it's going to blow up if you charge 95% of it. ("Someone is going to call from CapOne because I just ran the CL up to $290 on this $300 card!!!") CLI will come from that usage. When the CLI gets so large you can't bump up against it, then your usage utilization naturally becomes a smaller percentage of the limit.It IS useless.
lol
Perfectionist.
By that logic, someone just starting out in life should not buy a used car to get to their job, they should just walk to work. Then, when they hit the big time, and finally get the big raise they really deserve, they can buy a new car.
Is usable. At $300.
Yes!
Usable....
....If you shop at dollar general 