Defaulting on loans? High credit line use increases risk by 46%!
The study found that there is a connection between how much someone uses their credit line and the likelihood of defaulting on a loan. People who default tend to use their credit line more than those who don't. Using the full credit line makes it more likely for someone to default on a loan. The research suggests that banks should pay attention to both credit line usage and loan default probability at the same time.