What is the purpose of having a high CL when u never use it?

[Open123]

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@Revelate wrote:

In particular your suggestion that lenders believe that a 50K tradeline would have 10K used or bad things are happening: they don't think that way.

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+1

What Citi is comfortable with, may not align with Chase, Barclay, or Amex.  For instance, I've got both personal and Amex cards where I've routinely charged up to 200% of the CL without any issues, overlimit fees, or AA.

[CreditScholar]

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@Duncanrr wrote:

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@CreditScholar wrote:

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@Swapmeet wrote:

Thigh higher your limits are, the more debt that you can carry while keeping it at <10% utilization.

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+1. It really depends on your lifestyle and spending habits, but for some the answer is definitely yes.

I just charged $1400 for dinner a few hours ago, so blowing through 5k is very easy. If my CLs were lower, I'd have very high util all the time. At that point my score would tank so for me yes, having higher CLs helps.

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For how many people?

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There were 4 of us at dinner last night.

[ayasoysis]

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@09Lexie wrote:

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@Fico2Go wrote:

Lexie... rewards whether baggage fees or seat upgrade or concierge services can be paid with cash too.  So I'm not quite convince.. not yet a tleast.. that cash is inferior to rewards programs.  Unless of course the value in rewards broken down as cost value exceeds that which cash could buy. 

Some use cards to finance making money again PIF 

I have a buddy rehabs houses pays cash for the house dirt cheap

CC's to remodel and then sells all within a 30-45 day period

Myjourney.. On your final comment  "IMHO you need to broaden the way your looking at cards."   Yes I am aware that CCs can be great substitutes for short term interest free loans.  But there's also risks in doing so.  I won't get too much into this but yes u are correct. 

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I think you are missing my poInt.  I'm not paying for these upgrades- they are a product of simply using my cards for everyday purchases.  Yes, I can pay for upgrades but why would I if I can get them for free?

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Exactly! I would not underestimate the value of rewards versus cash. I put all of my business and personal expenses on credit cards and PIF each month. Every card that that I have serves a purpose and benefits me tremendously. I have taken a family of six overseas on vacation on points alone for hotel, car and airline tickets. In this case, cash is definitely not king.

[Fico2Go]

Ayasoysis, plz help me clarify this once and for all. Its my fault for starting this topic in the wrong direction. Allow me to start over by rephrasing my question.

In terms of reward benefits that u have earned, cumulatively, what would u say has been the earnings in pecentage per $100 spent?

[too-much-time]

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@enharu wrote:

If I am not applying for any credit, I'll usually just let the balance report as well, so my utilization may seem sky high at certain times and my score takes a hit because of that.

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I pay most of it before the statement date. Not just to avoid a score dip, but also, primarily, because catching up isn't a whole lot of fun.