Credit reports

[Madeinhb]

That doesn't make sense...but I have heard of that. The fear being that you can then max out the credit cards once you get the next line of credit, is that right?

Not max out. But like - say I'm planning a trip to Hawaii. I might want to open the Hawaiian Airlines credit card. Spend the 1k in like first 3 months to get X amount of free miles. If a person has too much credit, the new card will say - they have too much credit and need to close some.

Edit - wait read yours wrong. Yea CC company fear of too much open and going into too much debt they don't get paid.