High utilization cld ?

[takeshi74]

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@avggoal700 wrote:

I know each person is different but is there a general % where creditors might start to cld you?

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It's never just about one factor.  One's enstire credit profile always matters.  A person with a thick credit profile in otherwise good standing is going to be less likely to see AA from high Revolving Utilization than another with issues such as a thin profile, lates, other derogs, low AAoA, a number of new accounts and credit seeking activity, etc.  The stronger profile will generally be able to handle higher Revolving Utilization than the weaker profile.

Additionally, creditors are not all identical and have different risk tolerances so you cannot rely on X% for all creditors.  It's certainly possible for just one creditor to take AA.  It's possible for some but not all to take AA.  It's possible for all to take AA.  It really all depends on the specifics.

Instead of trying to walk the line, get your profile as clean and as strong as possible and keep your Revolving Utilization low.  If you have issues then get to work on them.  Hit the Rebuilding subforum and see what you can do about them.

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@Anonymous wrote:
This is such a wildcard

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There are unknown variables at play but it's all about risk assessment and the typcial risk factors are known.  It's not just random or a wildcard.  Those that get CLD'd or other AA always have one or more reasons whether or not they happen to recognize them.  Again, I'm not saying that you'll know exactly where each creditor draws the line but if you know the standard factors and understand what presents risk to creditors and work on minimizing risk then you can easily stay in good shape.  It just requires the time and effort to understand these things versus attempting to rely on quick fixes and assuming simple causal relationships like "X% leads to AA".

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@Anonymous wrote:
Could be the bank not liking profits
Could be their cost went up
The market tightened
They made soft investments elsewhere

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These can certainly change risk tolerances for creditors but they're not common concerns.  The standard factors are always important concerns to creditors.

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@avggoal700 wrote:

I know the lower the better of course and all my revolving is on auto pay, never have missed a revolving payment.  

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Whiel that's great you're overlooking a lot of other considerations.  From a FICO scoring perspective:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

[smittyboy020]

My BOA card was hit with a cld an hour ago because of high utilization.  I paid down the card to zero last week, and it was nuked today...From $7500 to $1600. My utilization overal was at 89%, but I paid everthing down to 20% percent.  A little too late.  I sat in high itilization for about a year because of financial issues.  Sucks...

[UncleB]

Like has already been said, there are many variables at play, really too many to make general blanket statements.

With that caveat firmly in place, I'll say that in my own case if I had to carry a significant balance (> 60%) I would try to stick with Capital One, since historically they aren't known for taking AA as long as you make your payment.

'Back in the day' I used to carry significant balances for months/years at a time with Citi as well, also with no AA (I know, a terrible idea - I was young and foolish then) but I don't know if I would have the same experience if I were to repeat this.  I am carrying a $2300 balance on my Diamond Preferred (0% APR for 21 months) but since the card is pretty much designed for this I'm not too concerned.  (I'm also making more than double the minimum payments.)

More recently, I used my new Discover last year for a 0% BT and it was > 50% for several months... not only was there no problem, I even got two CLIs while I was carrying the balance.  They were both small ($500) but it was a nice gesture.  However once I had the balance PIF they gave me a $4k CLI, so having the balance paid off clearly made a difference (at least in this instance).

With my other cards I tend to be more conservative.  If I had any of the historically 'jumpy' lenders such as Barclays I would be especially careful with them, but so far the lenders I have seem to be fairly solid. 

Note that I'm not advocating for anybody to follow my lead; I'm simply sharing my own experiences.  While I always try to avoid 'risky' behavior, I tend to value saving money with 0% offers over keeping an issuer happy... meaning my tolerance for risk might be different from other people.  As always your (and my) experience is YMMV. 

[Anonymous]

Honestly, it depends on your credit profile, your tolerance for risk, creditor, and your goals. I've allowed my Simplicity to report with a utilization of 98% and there was no AA from Citi. I didn't rush to pay it down. I made weekly payments which were about 2-3X the minimum payment every month.