Low ULT% negative impact on application?

[Anonymous]

Im wondering if anyone has any data on this.  I know we keep our card utlizations low to keep our scores up.  But, when we apply for credit cards, does that not end up hurting us? Where the credit card company might say, "you've got low utlization, have available credit, you don't use what you have...you don't need more credit"... Same goes for CLI.

Is this built into the formula? If so, what IS the optimal Utlization? 

[Anonymous]

Great question, OP as I would like to know that answer as well. There are a few lenders who like to see low util and others who don't.

[Anonymous]

I guess if I'm asking about a specific lender, I'm asking about American Express.  

[Anonymous]

When I applied for my Amex I had about 7% aggregate utilization at the time.

[Heatt99]

Great question. I just got my AMEX(HHS @15K), and I think its the card you are applying for. To me, I'm still in a rebuilding stage with revolving credit. Got several cards in just over 18 months.

HIghest limit is NFCU @ 25K (9 months)

Usually make payments at or above 3x minimum due

Utilization above 30%

Income just above 100K

Home Owner

In my opinion, AMEX likes big spenders that will use their product, who can pay back in large lumps sums. If they can get a BT off you, that a bonus.

[Anonymous]

We have seen DP's to suggest that some Banks(UMB), will deny people with too many revolving accounts as well as having high CL's.

So I'm sure it is a factor for some on whether they aprove or the SL they assign you. With Amex I don't think it's that big of an issue, plenty of people here have several cards with high limits. And still get approvals with high limits, obviously profile dependant.

So it's likely a small factor among many that goes into their decision. If they match another Lender's CL or if it's slightly over, they might stand a chance to take spend away from said Lender. Thus generating revenue for them.