I would define pyramiding as getting new credit to get further into debt or to pay off other debts.
PenFed denies people for pyramiding when they're not
They also use the term when they think you already have enough credit, or when they think you've opened sufficient new accounts recently.
The idea is, when they see you are spreading debt over as many lines of credit you can get, you may not be able to pay all those debts. When spreading you debt over many cards you report a low util, but you may not be able to pay it back.
To avoid getting those clients penfed denies applicants who show signs of that
Cards: BCE 24k 5/'17 | CF 12k 10/'15 | IHG 12k 10/'15 | HH 6k 6/'18 | DS It 6k 3/'15 | TR 5k 11/'15
Scores: 760-770 | Inquiries: 0-1 | Utilization: 0-10% | AAoA: 3yrs | Bank: Ally | CU's: Navy & Pentagon
