pyramiding debt

what exactly is pyramiding debt?

I'm reading various posts on the Internet about PenFed rejecting HELOC applicants and the reason given was pyramiding debt. there are conflicting answers out there




first explanation

Quote : They look at your balance history on your CR, if your total debt keeps climbing instead of remaining steady or getting lower, they think you are not paying your debts, you are simply getting higher limit cards and getting further in debt as you do. Pyramiding the debt so that your util looks lower when it really is a higher amount.

second explanation

Quote : [PenFed] sent me a letter which says: "Pyramiding debts -presently have maximum open-ended credit." "Utilization of 0% of open ended credit lines." "Increase utilization or reduce open ended credit"

As you can see, the explanations are conflicting. The first one is debt balance increases but via CLI the utilization is kept low. The second one says utilization is not enough and debt needs to increase.

Hopefully I can get a good answer here.