High utilization cld ?

[avggoal700]

I know each person is different but is there a general % where creditors might start to cld you?  Overall and individual .

 I know the lower the better of course and all my revolving is on auto pay, never have missed a revolving payment.  

[Pway]

We never know when a creditor may CLD a person.  I have seen it happen to people with excellent credit and people with shaky credit.  Barclays is one of those lenders that will CLD you for too many inquiries, new accounts and etc.  

A CLD also happens when there are significant amount of money owed on each credit card they own or when one is making only the minimum payments.  It is really hard to tell when or how a creditor will CLD a person.  Each and every profile is different that is why it is important to keep balances low.  

[Thomas_Thumb]

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@Pway wrote:

We never know when a creditor may CLD a person.  I have seen it happen to people with excellent credit and people with shaky credit.  Barclays is one of those lenders that will CLD you for too many inquiries, new accounts and etc.  

A CLD also happens when there are significant amount of money owed on each credit card they own or when one is making only the minimum payments.  It is really hard to tell when or how a creditor will CLD a person.  Each and every profile is different that is why it is important to keep balances low.  

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Generally a CLD won't be a consideration unless high balances are maintained month after month - indicative of a chronic problem ... or in my case non use of a credit card for a year indicating there is no profit potential for the account. Fortunately all I experienced was a "wake up call" CLD as opposed to an account closure notification which some people get.

[12njoy]

I got a CLD from Barclays and Chase for too many new accounts.  Utilization was bare bones, income high, and no derogs.  I ended up closing Barclays as a result but let Chase accounts open.  Looking back on it, I think that I had multiple cards which had small balances as I was trying to make sure that I utilized all my accounts.  I think this also may have played a factor even though I'm talking about small balances like $50.  Really each case is different.  There won't be one model that fits every case.

[Anonymous]

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@12njoy wrote:

I got a CLD from Barclays and Chase for too many new accounts.  Utilization was bare bones, income high, and no derogs.  I ended up closing Barclays as a result but let Chase accounts open.  Looking back on it, I think that I had multiple cards which had small balances as I was trying to make sure that I utilized all my accounts.  I think this also may have played a factor even though I'm talking about small balances like $50.  Really each case is different.  There won't be one model that fits every case.

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Oh wow.... 

[CreditMagic7]

Some people play with fire on the percentages and although with certain lenders like Discover, running up the ladder well over 50% then PIF might actually produce a dividend in a higher limit and/or earlier CLI than expected, i leave matters like this to others to play with.

To me it's not worth the risk especially when with some lenders it takes a great deal of time and effort just to build up your low or mid range starting limits to a point that is more acceptable for you.

[Anonymous]

This is such a wildcard
It's all speculation because CLD could stem from internal issues at the CCC that have little to do with the actual behavior of any one card holder

Could be the bank not liking profits
Could be their cost went up
The market tightened
They made soft investments elsewhere

Any number of things not even related to you

Too much of a crap shoot to think we have that much control over if they decide to 'limit' possible liabilities


We saw this overall in 08/09
They were slashing CLs just in case, card holders hadn't done anything wrong

But the state of THEIR businesses caused them to react and that can happen with any vendor Tomorrow, so it is what it is.

Do the best we can and don't be married to only one vendor.... like I always say, best to have a few places to lay your head, just in case😉

[Anonymous]

Risk Management. That's it. Every lender has it's own measuring stick. When someone doesn't measure up, they get whacked; how hard depends on the level of elevated risk.

No lender will take adverse action without cause. We may not agree with the cause or the action, but for lenders its all about managing their own risk.

[BeeH11]

Things may be different now but when I was in college (mid 2000's) all my cards I had at the time were maxed out for months at a time and I never got a CLD. However, I would usually pay them down 1-2 times a year (when financial aide/student loans kicked in). Not sure if that made a difference. I always paid on time (usually the minimum). But Citi bank did close my student credit card shortly after the housing bubble pop (I was so mad).

[creativeZero7]

Each lender has their own formula. I've had high utilization on a couple cards but I've never heard anything from the bank. I personally think it's about the risk formula at each institution, and that is always fluid-changing. A customer with high uti but that pays down and spends month to month may be a great customer at one bank (the bank earns interest each month and spending is consistent). While at another bank that same customer may be viewed as a high risk and not worth the interest income. It also has a lot to do with so many factors outside of our control. Think back to the recession when banks were overexposed and across the board people were cld, closed, etc.