How much does "highest balance" matter?

[masscredit]

Our credit reports list Largest Past Balance or Highest Balance. How much does that matter when it comes to CLIs and/or being approved for new credit? Will an account with a $10K limit be more likely to get a better CLI if it's had a high balance of $7500. vs one that has only had a high balance of $1000?  The same goes for new a new credit card. Would a person be more likely to have a higher starting credit line if they show a lot of usage in the past?

[Revelate]

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@masscredit wrote:

Our credit reports list Largest Past Balance or Highest Balance. How much does that matter when it comes to CLIs and/or being approved for new credit? Will an account with a $10K limit be more likely to get a better CLI if it's had a high balance of $7500. vs one that has only had a high balance of $1000?  The same goes for new a new credit card. Would a person be more likely to have a higher starting credit line if they show a lot of usage in the past?

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Lender dependent.  All other things being equal, yes higher usage results in better limits; however, with payments being reported now, high balance is likely less important from an UW perspective.

[Anonymous]

I think that having a high balance can show ones ability to handle and pay down large balances. I would think an UW could view that in a positive way as well.

[damnedanddetermined]

well, according to Barclay's....I was denied a MC because "to many accounts with low credit limits"....but I have a US Bank Visa and  just got a 3800 Potterybarn?!!? Sometimes, I just scratch my head?!!?

[TheConductor]

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@damnedanddetermined wrote:

well, according to Barclay's....I was denied a MC because "to many accounts with low credit limits"....but I have a US Bank Visa and  just got a 3800 Potterybarn?!!? Sometimes, I just scratch my head?!!?

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There comes a point in your credit journey where from the lender's perspective "low limits" means "anything under $5000".  I bumped against that for a little while, too.

[Imperfectfuture]

Barclay's offered a cli on my 10k card, have not had a balance over 1.5k. I declined, since I want other cards with them, and 10k is enough for moi (if not too much).

[peaceonearth]

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@damnedanddetermined wrote:

well, according to Barclay's....I was denied a MC because "to many accounts with low credit limits"....but I have a US Bank Visa and  just got a 3800 Potterybarn?!!? Sometimes, I just scratch my head?!!?

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It could happen if you apply for a credit card that has minimum SL that you won't get quulified for.

[masscredit]

Something that I noticed while viewing my reports is one of my accounts had a higher high balance than I remember. Then I realized I used that card for a large purchase and ended up returning the item. It still showed the balance including that.