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Jumped from the garden for this

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Established Contributor

Re: Jumped from the garden for this

It makes perfect sense from the lender's POV... if you only use 10% of what they've given you, why should they give you more?  It doesn't benefit them, or you for that matter (except for utilization, which if you're only using 10% in the first place, is low enough already!)

 

Lenders can't give out infinite amounts of credit... they need reserves, and when they grant a credit line, they expect it to be used so they can profit from it (swipe fees, interest etc).  If you aren't using it... well, they aren't profiting from it, and they can't give it to someone else who will, unless they CLD you (which some lenders like CapOne and Amex are starting to do in these situations).

 

P.S. Highest balance on your credit report comes from the lender, so even if you PIF before statement cut your highest balance (as provided by the lender) will be reported.  Perhaps some lenders don't submit this info and the report uses the highest reported statement balance for this figure, but looking on Experian I see my highest balance on a card that I know I never had that balance report.

 

 

 

Gardening starting 8/1/19
Goal: 0/24, diamond spade, and SAVE, SAVE, SAVE!!

Open Tradelines:
Inquiries: Age: New TLs/months: 2/24 2/12 0/6
FICO 8 Scores: 01/2020: -5 -4 02/2020: +12 +16 03/2020: +7
Message 31 of 33
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Valued Contributor

Re: Jumped from the garden for this


@DivorcedAndBroke wrote:

It makes perfect sense from the lender's POV... if you only use 10% of what they've given you, why should they give you more?  It doesn't benefit them, or you for that matter (except for utilization, which if you're only using 10% in the first place, is low enough already!)

 

Lenders can't give out infinite amounts of credit... they need reserves, and when they grant a credit line, they expect it to be used so they can profit from it (swipe fees, interest etc).  If you aren't using it... well, they aren't profiting from it, and they can't give it to someone else who will, unless they CLD you (which some lenders like CapOne and Amex are starting to do in these situations).

 

P.S. Highest balance on your credit report comes from the lender, so even if you PIF before statement cut your highest balance (as provided by the lender) will be reported.  Perhaps some lenders don't submit this info and the report uses the highest reported statement balance for this figure, but looking on Experian I see my highest balance on a card that I know I never had that balance report.

 

 

 


I am not upset at my credit card issuers over the CLI denials, it actually makes sense for them to do that. I just try to let people know that never having a large balance will usually lead to CLI denials. If I were in their shoes I would do the same or worse. I have actually got cards that were used until the SUB paid me, and never made it back out of my sock drawer again. Why would I use their card with a 1% reward structure when others have 1.5% or 1%+1%, like the double cash. I actually use the 1.5% capital one card more than any except my Chase Amazon Prime which is 5% on Amazon, followed by Amex everyday Preferred which is 6% on groceries. I like the very simple reward structure of the Capital One, with no minimum redemption, and points are added quickly. I use my State Farm credit card for 3% cash back on insurance. Other cards see much less use...1 pays hulu, one pays netflix, one pays my Mothers dish bill, which she returns to me. The Citi Doublecash is used to pay my combined Uverse, phone, and cell phone. I recently had to close my Chase Freedom Unlimited due to non-use, but they let me rollover the credit limit to my Chase Amazon Prime card.

TU fico08=823 02/27/20
EX fico08=813 02/13/20
EQ fico08=826 03/05/20
EX fico09=821 03/04/20
EQ fico bankcard08=849 02/25/20
Message 32 of 33
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Regular Contributor

Re: Jumped from the garden for this

Congrats on the approval. Nice SL and great scores. 



Starting Score: TU 527, EQ 543, EX 563
Current Score: TU 690, EQ 677, EX 694
Goal Score:725 Across The Board


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Message 33 of 33
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