QUOTE(mr_tuzki @ Jun 25 2019, 01:36 AM)
I think that's counter-intuitive. Say there's 3 customers.
Customer A: RM100k credit limit. RM20k outstanding balance.
Customer B: Rm25k credit limit. RM20k outstanding balance.
Customer C: RM0 credit limit, never applied for any loans / credit card before.
If I'm the bank, I'll judge Customer A > B > C.
Customer A is using just 20% of available credit limit, whereas Customer B is using 80% of available credit limit.
Credit limit is not unlimited. It's a representation of how much the bank would risk loaning to you at any one time.
So for someone with 100k income, perhaps bank Z feels can only loan them total 200k. But they already have 185k credit limit from other banks/cards. Even if their outstanding balance is 0, bank will not give the card.
Source - multiple failed CC applications until I cancelled the Citibank card that had unreasonably high credit limit (and zero utilisation).