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Valued Member
IvoH
Posts: 25
Registered: ‎06-04-2008
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How helpful credit utilization is for a CLI?

Do you guys think that the higher cash flow will significantly help you to increase your CL? I know that many times things do not work the way they make sense to us, but I look it this way - if creditors see that you are charging you cards and paying them off all the time, a CLI would bring higher credit utilization and more profit for the company.
Established Contributor
Posts: 513
Registered: ‎04-03-2007
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Re: How helpful credit utilization is for a CLI?


IvoH wrote:
Do you guys think that the higher cash flow will significantly help you to increase your CL? 

 

 if creditors see that you are charging you cards and paying them off all the time, a CLI would bring higher credit utilization and more profit for the company.


 

 

I have frequently received CLIs upon request when I stated that I didn't want to go over 50% utilization. Of course I had to actually use 50% of my limits in order to show the banks that they would have to give me CLIs in order for me to charge more on their cards.

 

I frequently used 0% BTs to my checking account (for profit) after asking for CLIs and then still only borrowing 50% of the new CL. I left a lot of free money sitting on the table by only borrowing 50% of the credit limit, but I built some great credit limits while still earning some free money. My credit scores never really suffered that much either.

 

I can unequivocally state that higher credit card usage can definitely achieve higher CLs. Of course you have to watch the score impact of the high usage. PIFing before the statement drops can help. :smileywink:  

 

I have made some additional comments about the question that you raised in This_Thread.


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