I have a friend who wanted to buy a house a few years back. Good credit, low 800s, but got denied. One of "flags" the bank gave him was he pays off the balance as he has the money. He told me that was one of the things they kept coming back to for some reason.
That's odd. The loan agent from when I got my house said she doesn't usually see people like us who have our shit in order. We got approved for a 350k loan.
A lot of his problem is he's never really had any kind of loan before except a small car loan in the past.
Ah, well I've heard that not having a history of credit lines can screw you. Everything on my credit reports previous to the mortgage are all paid off but were on record still. That might be why it worked out better in my case.