To much usage for a CLI?

[masscredit]

I'll be surprised if the answer is "yes" but you can use your card to much and be denied for a CLI? I don't mean running it up and leaving a high balance. More like giving it a lot of use and then paying it down or off a few weeks later. Maybe repeating the process a number of times. I think lenders are happy to see a lot of usage and feel confident when a cardholder does that and makes healthy payments. Stranger things can happen so I figure I'd ask.

[Anonymous]

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@masscredit wrote:

I'll be surprised if the answer is "yes" but you can use your card to much and be denied for a CLI? I don't mean running it up and leaving a high balance. More like giving it a lot of use and then paying it down or off a few weeks later. Maybe repeating the process a number of times. I think lenders are happy to see a lot of usage and feel confident when a cardholder does that and makes healthy payments. Stranger things can happen so I figure I'd ask.

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I would say yes, but you could run into issues if you reported income that didn't seem to support your spending. Otherwise, that's what they want to see and should help you get a CLI.

[Anonymous]

Yep, actually happened to me. When I first got my Barclays USAir card it had a measley limit, I frequently maxed it out but would pay it off midcycle. I did this month after month. Finally, I called Barclays and asked for a CLI and they denied me. Reason: balance too high in relation to limit. 

That was the reason I wanted a CLI in the first place! If I had a decent limit it wouldn't be a high balance! I eventually got my CLI but not after that ridiculous incident. 

[Anonymous]

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@Anonymous wrote:

Yep, actually happened to me. When I first got my Barclays USAir card it had a measley limit, I frequently maxed it out but would pay it down midcycle. I did this month after month. Finally, I called Barclays and asked for a CLI and they denied me. Reason: balance too high on card. 

That was the reason I wanted a CLI in the first place! If I had a decent limit it wouldn't be a high balance! I eventually got my CLI but not after that ridiculous incident. 

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Did you still have a balance when you asked for the CLI or did you pay before you asked?

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Yep, actually happened to me. When I first got my Barclays USAir card it had a measley limit, I frequently maxed it out but would pay it down midcycle. I did this month after month. Finally, I called Barclays and asked for a CLI and they denied me. Reason: balance too high on card. 

That was the reason I wanted a CLI in the first place! If I had a decent limit it wouldn't be a high balance! I eventually got my CLI but not after that ridiculous incident. 

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Did you still have a balance when you asked for the CLI or did you pay before you asked?

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I had a balance of ~$200 at the time of request. I think they reviewed my CBR which showed a much higher balance. I wasted a HP on that request! That was a long time ago, before I found MyFico. Live and learn I guess. 

[masscredit]

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@Anonymous wrote:

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@masscredit wrote:

I'll be surprised if the answer is "yes" but you can use your card to much and be denied for a CLI? I don't mean running it up and leaving a high balance. More like giving it a lot of use and then paying it down or off a few weeks later. Maybe repeating the process a number of times. I think lenders are happy to see a lot of usage and feel confident when a cardholder does that and makes healthy payments. Stranger things can happen so I figure I'd ask.

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I would say yes, but you could run into issues if you reported income that didn't seem to support your spending. Otherwise, that's what they want to see and should help you get a CLI.

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Why is that? I wonder if they have a guide that says a person will usually use their card a certain percentage of their income? 

[Anonymous]

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@masscredit wrote:

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@Anonymous wrote:

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@masscredit wrote:

I'll be surprised if the answer is "yes" but you can use your card to much and be denied for a CLI? I don't mean running it up and leaving a high balance. More like giving it a lot of use and then paying it down or off a few weeks later. Maybe repeating the process a number of times. I think lenders are happy to see a lot of usage and feel confident when a cardholder does that and makes healthy payments. Stranger things can happen so I figure I'd ask.

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I would say yes, but you could run into issues if you reported income that didn't seem to support your spending. Otherwise, that's what they want to see and should help you get a CLI.

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Why is that? I wonder if they have a guide that says a person will usually use their card a certain percentage of their income? 

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No what he means is this-if you report income of say $50K/year and you're spending and paying off $4K/mo then creditors will take note as  they wonder where the extra money is coming from.  Amex particularly watches for this.

[masscredit]

I didn't realize that they do this but I guess it makes sense. 

[taxi818]

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@Anonymous wrote:

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@masscredit wrote:

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@Anonymous wrote:

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@masscredit wrote:

I'll be surprised if the answer is "yes" but you can use your card to much and be denied for a CLI? I don't mean running it up and leaving a high balance. More like giving it a lot of use and then paying it down or off a few weeks later. Maybe repeating the process a number of times. I think lenders are happy to see a lot of usage and feel confident when a cardholder does that and makes healthy payments. Stranger things can happen so I figure I'd ask.

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I would say yes, but you could run into issues if you reported income that didn't seem to support your spending. Otherwise, that's what they want to see and should help you get a CLI.

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Why is that? I wonder if they have a guide that says a person will usually use their card a certain percentage of their income? 

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No what he means is this-if you report income of say $50K/year and you're spending and paying off $4K/mo then creditors will take note as  they wonder where the extra money is coming from.  Amex particularly watches for this.

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True with amex. and this is why they ask. in income question. all monies avaliable to you. so in my case. as taxi driver. all money used to pay my bills is about 100k per year. but. my actual net after all is said and done is only about 40k. lots of expenses. gas being one of them. 15k per year. but i use that money to pay my bill when i charge gas. so there we have it. if i say my income is 40k but run up 35k per year on my card. how the hell. not possible.

[masscredit]

I used to use my cards for my business years ago. I'd charge items that were purchased from companies that didn't do open accounts. I only showed a little over $100K per year in income but I probably charged at least $500K.  I din't recall what AMEX asked about income then. I had two of their SkyMiles cards. I closed the business in 2010 and haven't paid for a flight since 2003.