@pdxmike wrote:
There are ways to create that kind of spend without having that kind of money, but wouldn't at least some lenders balk at spending more money than you're earning, or would they not care as long as you're paying the balance?
Maybe I should focus my question:
What is the border area between credit use that creditors see as responsible and irresponsible? What ratios should I aim for or avoid to prove I can spend and pay meaningful amounts without looking like I'm too risky?
If you're talking about MS then forget it. Lenders don't take kindly to that at all, even if you're not using it to artificially inflate rewards.
And back to your original question: I'd say history and income are far more important than your monthly spend. Personal example: I got 3 more cards in November last year and my spending on my BoA card dropped like a rock (it was my only card for 5 years). I went from regularly swiping close to $1000 each month down to averaging $100 each month, maaaaaybe $200 on a very busy month. Had a 15K CL and still managed to CLI to 24K despite not needing any of it and barely using 2% of the original CL.
To be fair I hadn't asked for a CLI in 3.5 years, and I'm also a Preferred Rewards client. But this just goes to show how little monthly spend matters in the grand scheme. But if you must have an answer, I'd say keep your util below 30%, and definitely no more than 50%. That being said, if you have a long enough history with the bank and have the means for doing so, maybe you can try going >85% util one month, then PIF the day after the statement cuts to avoid triggering any AA algorithms. (>85% util is considered "maxed out" by FICO, also if you have a sudden and dramatic util spike, the computers will definitely keep close tabs on your account for any signs of (bust out) fraud)
@simplynoir wrote:
@wasCB14 wrote:
@Anonymous wrote:Many times it is just a matter of time,scores and "reasonable" use. Yes income and cranberry do play a part also.
Join us over in the garden club.
Is this an autocorrect? Or slang I don't get?
Garden thread slang that's sort of in-joke.
It means utilization.
I had to have the cranberry thing explained to me...
But it actually is quite amusing....
Abbreviation for utilization is UTI..... and if youve ever had a UTI.... one of proported things that can help is cranberry juice/cranberries...
Hence cranberry=UTI
Hence having a bigger cranberry=more uncomfortable and side effects...
I put every purchase I can through a credit card no matter how big or how small.
I charge between $5,000-$10,000 per month.
It matters for both CLI and for rewards.
I earned over $100 per month on average in cash back. That is free money!
If you charge $100 per month and have a $5,000 limit, why would a bank give you $20,000 when they can give it to someone else who charges and pays $10,000 per month?
I am a firm believer in showing high (75% of CL) balances on CR then paying down to 1%.
It shows that you can handle large amounts of money.
I was denied for a $35,000 car loan once because my previous $50,000 car was only financed $20,000. The CU told me that I did not show that I could handle a $35k car loan because my highest previous was $20,000!
I agree that amount charged each month certainly plays some role, but as others have noted and I've witnessed myself, it definitely takes a back seat to other more important factors.
If you can run up 75% of your CL with 100% necessary and legitimate expenses (in other words stuff you would've bought anyway regardless) then by all means go for it. But doing so for the sake of a CLI which may or may not happen is beyond foolish.