target utilization more important than large trade line?

[cakebuilder]

is it beneficial to have more credit available or is a target utilization < 5%  more important?

i ask because of the 3 x cli. i dont have the need for a giant trade line - but i would apply if say having a lot available is good for my overal score/credit rating. 

according to a credit simulator, an increase to the overall trade line boosted my score...so i am inclined to ask for the increase. I am wondering if this is universal. 

OP, 

Please refrain from posting duplicate threads across multiple boards. 

~ Lexie, myFICO Moderator 

[milkshakes]

they go hand in hand since a higher tradeline equates to a lower target utilization (assuming expenditure stays the same).

it's always good to stay <10% utilization, so the giant trade lines, though unnecessary, won't hurt you (unless you get tempted easily). 

if your monthly expenses are around or over the 10% util, go for the CLI. it might force a hard pull which will result in a temporary decrease, but it's optimal for the long run

[cakebuilder]

right, but if my util is already <5%, an increased trade line will only make my util smaller since my expenses will stay the same. that being said, will a giant trade line be favorable. meaning, does it boost my credit score?

[milkshakes]

creditors don't really care if your util is 5% vs 3%. having a giant trade line may slightly boost your credit score because it shows that you're responsible with high amounts of credit, but in general they're primarily concerned with util, not the line itself.

[takeshi74]

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@cakebuilder wrote:

right, but if my util is already <5%, an increased trade line will only make my util smaller since my expenses will stay the same. that being said, will a giant trade line be favorable. meaning, does it boost my credit score?

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It's really the utilization that matters which is why the <10% recommendation exists.  As mentioned above, your limits are factored into your utilization.  Limits alone aren't useful for scoring.  As an example, let's assume that person A and person B both have a card with a $10,000 limit.  If person A has a balance of $100 and person B has a balance of $9,000 then these two aren't considered to have the same risk just because they have the same limits.  Utilization matters because it demonstrates how one is using available credit.  10% utilization and 90% represent very different levels of risk even with the same limit.

You'd have to test to determine if lowering your utilization will improve your score and to what degree.  The exact % for ideal utilization can vary from person to person.  As stated above, it's possible that you may see a slight improvement to your score.  We can't say for certain though.

Increasing the limit could also give you a buffer in case you close another card in the future as closing a card will increase utilization.

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@cakebuilder wrote:

is it beneficial to have more credit available or is a target utilization < 5%  more important? 

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They're really not mutually exclusive as your question makes them out to be.