Originally Posted by acf573
It would be more accurate to say that it could be a dangerous thing if you do not have much revolving credit available (e.g., credit cards). If you have plenty, then I don't think it makes that big of a difference.
I believe the reason Citi doesn't report a limit with this card (even though there is one that's set) is because this is a no preset limit spending card. Kind of dumb if you ask me. But better than Capital One which does not report limits for any of their cards (to prevent other banks from poaching their customers).
It should still make a difference even if your Citicard PP represents only a slice of your total CL because maxing out a single card is factored into FICO scoring as well. But you are absolutely correct. The presence of other lines will soften the effect. For people like me who limit their cards to one or two, it is not such a good thing.
The "no preset spending limit" feature comes with the PP because it is a World Mastercard. I have heard of World MCs and Signature VCs reporting CL though, so I'm not so sure that completely accounts for Citi's non-reporting.
And you are absolutely correct, Capital One does this as well.