IMO as far as reporting to CRAs, I think whatever shows as your monthly outstanding or current balance will be your usage/utilization and that will include yours BT amounts as well. But internally, for ARs or CLIs, it will probably depend on some other factors as well such as monthly swipes and payments.
In my experience with Cap1, they never gave me a CLI when i had a huge balance with them due to BT and very minimal to zero swipes but gave me a bunch of CLIs when BT was paid off and had very frequent swipes with the card.
@masscredit wrote:I know BT balances count towards utilization but I was wondering if they count as usage for a CLI. Cap 1 is the card that I have in mind.
Unlike utilization, usage is a very vague, subjective, unofficial concept. Some underwriters would consider balance transfers as 'usage' that puts a smile on their face, others consider them some sort of danger signal that connotes risk.
I'm sure there are other ways of looking at them too... e.g. did the bank make any money on them?
I'm sure there are also different banking cultures in ways of viewing both usage and balance transfers. In some institutions, usage and balance transfers are a happy thing, in other institutions a worrisome thing, in some institutions it depends.
In fact it is debatable whether heavy usage increases one's prospects for a CLI at all at some institutions, where it seems to be more strategic to play hard to get than it is to show the bank lots of love.
In other institutions, it is generally accepted as you suggest, that lots of usage helps you get CLI's.
After a year of carrying a BT on my BofA visa, I paid it off and shortly after they offered me a CLI without a hard pull. Ended up getting $4k added to the line. I think the BT and steady payments provoked the CLI offer, but who knows.
