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My usual spending pattern is to report no more than $1000 per month and PIF after statement cuts. Because of a temporarily low income, my balances are up to over $7000.
2 years ago when my total CLs were around $10K this 70% utilization would have tanked my FICO and put me in trouble with my creditors. Now, I don't think I've seen my score move more than 5 points from 1% to 7% utilization. It provides a peace of mind and safety against changing financial situations.
Other than that, for some people it's pride and for others it's a high score to test what the limit is.
Regarding the benefits of higher limits . . .
FICO isn't the only benefit. I've been told by people I trust that higher credit limits are beneficial for credit decisions that are reviewed (as opposed to computer-automated). In other words, a $12k card and a $9k card will make a better impression than seven $3k cards.
I've also seen some evidence of this. I got approved for Chase Freedom and BofA Cash Rewards within a few days of each other, with the Chase card having a $2800 higher limit than BofA. I asked BofA for a $3k increase, and they approved me for $2800. Not quite what I asked for, but exactly enough to match Chase. I wonder if I'd have received the same response if the comparison had been different (say, if Chase had been $2800 lower, instead).
Again, I don't know this for a fact. It's just something I filed under trusted advice. And the BofA CLI could have been a coincidence (though I know it was handled by a human, because I was on the phone with her).
Others' experience may be different.
Several posts has been removed from this thread for violations of our TOS and FSR policies. I want to remind everyone that you must post in an FSR manner I thank you for your understanding on this and to those of you who are I thank you.
http://ficoforums.myfico.com/t5/Credit-Cards/Forum-Etiquette/td-p/2905196
gdale6
myFico Moderator