TOO much Available Credit?

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hockeyplayr
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Postby hockeyplayr » Fri Oct 03, 2014 8:25 pm

CarefulBuilder14 wrote:Well, that's not totally it. Getting boosted to Visa Sig on Freedom or WMC on Sallie Mae would be good.

Is your Sallie Mae a Platinum or World MC? What's your history with it as far as account age and any auto or HP CLIs?

So I like the game aspect, I suppose. I just don't have any interest in the part that involves getting cards I won't use much due to mediocre rewards and modest signup bonuses.


It is a platinum. I've had it for 9 months and never received an auto increase. To be fair 3 of the first 4 months I had it i never used it because I was chasing sign up bonuses. I hear they like heavy use the first 6 months though for an auto so maybe at the year mark for me. As far as an upgrade, you have to be approved for the world right off the bat. Even if you bump up above 5k they will make you reapply which to me doesn't seem worth it because it is up to the issuer to include world mastercard benefits and for all I know Barclays probably leaves out any of the decent benefits since there is no annual fee.
Credit Scores: Equifax - 736 (October Fico) | Experian 726 (October Fico) | TU - 758 (October Fico)

Credit Lines: Diners Club 20k | Citi DC 9.1k | SDFCU 5k | Penfed 7k | Amex BCE - 10.5k | Chase Marriot - 5.2k | CSP - 6.5k |Discover IT - 9k | Sallie Mae 3.8k | Citi TYP - 3.5k | BOA 123 - 4.9k | Total Rewards 3.25k|


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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Oct 03, 2014 8:45 pm

hockeyplayr wrote:It is a platinum. I've had it for 9 months and never received an auto increase. To be fair 3 of the first 4 months I had it i never used it because I was chasing sign up bonuses. I hear they like heavy use the first 6 months though for an auto so maybe at the year mark for me. As far as an upgrade, you have to be approved for the world right off the bat. Even if you bump up above 5k they will make you reapply which to me doesn't seem worth it because it is up to the issuer to include world mastercard benefits and for all I know Barclays probably leaves out any of the decent benefits since there is no annual fee.


Well, I only use Sallie Mae for boring stuff with merchants I know well. The last time I discovered in the grocery store parking lot that some of the eggs in my dozen were broken, I got replacement eggs without any trouble. I didn't even need a receipt, let alone WMC's involvement.

Amazon has been pretty good about refunds in my limited complaint experience with them.

WEMC would be useful in Arrival+, so it is good that new applicants get WEMC if approved.

But it is a bit discouraging that Barclays doesn't do auto upgrades to WMC when you hit the 5k level.

I've been using Sallie Mae a lot since I got it, but (Edit: 96%) of the spending is on their 5% categories, so they might not be thrilled about that.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

hockeyplayr
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Postby hockeyplayr » Fri Oct 03, 2014 10:21 pm

CarefulBuilder14 wrote:Well, I only use Sallie Mae for boring stuff with merchants I know well. The last time I discovered in the grocery store parking lot that some of the eggs in my dozen were broken, I got replacement eggs without any trouble. I didn't even need a receipt, let alone WMC's involvement.

Amazon has been pretty good about refunds in my limited complaint experience with them.

WEMC would be useful in Arrival+, so it is good that new applicants get WEMC if approved.

But it is a bit discouraging that Barclays doesn't do auto upgrades to WMC when you hit the 5k level.

I've been using Sallie Mae a lot since I got it, but (Edit: 96%) of the spending is on their 5% categories, so they might not be thrilled about that.


Barclays will issue two sallie maes. So if you think you'll definitely get 5k+ just apply again and you'll be able to have double the spending cap
Credit Scores: Equifax - 736 (October Fico) | Experian 726 (October Fico) | TU - 758 (October Fico)

Credit Lines: Diners Club 20k | Citi DC 9.1k | SDFCU 5k | Penfed 7k | Amex BCE - 10.5k | Chase Marriot - 5.2k | CSP - 6.5k |Discover IT - 9k | Sallie Mae 3.8k | Citi TYP - 3.5k | BOA 123 - 4.9k | Total Rewards 3.25k|

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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Oct 03, 2014 10:35 pm

hockeyplayr wrote:Barclays will issue two sallie maes. So if you think you'll definitely get 5k+ just apply again and you'll be able to have double the spending cap


The BCE already handles that pretty well for groceries. Discover and Freedom have 5% gas quarters, too - and reward points that can be worth more than one cent.

An Arrival+ would trump a 2nd Sallie Mae, and a WMC would be pretty useless once I had a WEMC.

One option would be replacing the BCE with a TrueEarnings, getting ShopRunner through TE, and then getting a 2nd Sallie Mae. That's too many pulls and new accounts to consider in the near future, though.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

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otter
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Postby otter » Fri Oct 03, 2014 11:23 pm

Berk wrote:I can't imagine how too much available credit could hurt you. Obviously, high utilization will hurt you but if you are sensible and keep your utilization at 10% or less, you shouldn't have a thing to worry about. And, an increased CL lowers your utilization. After all, wasn't it your wise use of credit in the first place that prompted the CLI?


Having too much available credit won't hurt your FICO score, but it often affects individual creditors' scoring models. FICO can't take your income into consideration, but for a creditor it is an important consideration. A student at an Ivy League school who works part-time and makes 20k with 100k in credit card limits may be different than a single mother who works full-time at Wal-Mart making 20k with 100k in CL's- one will obviously be making 100k+ soon, the other will probably not have any income increase soon. The problem is even the most thorough credit application allowed by law doesn't tell the creditor your entire life- it only gives a tiny snapshot. A more conservative lender might be spooked by someone whose available credit greatly exceeds their income.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

Berk
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Postby Berk » Sat Oct 04, 2014 12:05 pm

otter wrote:Having too much available credit won't hurt your FICO score, but it often affects individual creditors' scoring models. FICO can't take your income into consideration, but for a creditor it is an important consideration. A student at an Ivy League school who works part-time and makes 20k with 100k in credit card limits may be different than a single mother who works full-time at Wal-Mart making 20k with 100k in CL's- one will obviously be making 100k+ soon, the other will probably not have any income increase soon. The problem is even the most thorough credit application allowed by law doesn't tell the creditor your entire life- it only gives a tiny snapshot. A more conservative lender might be spooked by someone whose available credit greatly exceeds their income.


I agree that a more conservative lender could indeed by spooked by a high CL to income ratio. However, if they have a good history of low utilization then one would think that the lender would be impressed with their use of credit. If I only have 1500 bucks in credit and only charge 500 a month because I use my card for everything but then I PIF every month, I end up with a great payment history but lousy utilization. The only way I can overcome that is to ask for CLIs and/or open more accounts. I guess we are right back to "When is too much too much?" AMEX requires the most financial info of any card I have applied for; however, they also give the most generous CLIs with soft pulls. Are they a conservative lender? I don't know. How many other issuers perform financial reviews on individual accounts the way AMEX does? So far, it has never been a fine line for me between my CL and income. I guess for some people it could be but my utilization is so low (hovers around 3%) that I don't know if I would ever have a problem.
Fico Scores 05/25/2015
Equifax 766
TransUnion 788
Experian 797

Over $140,000 in credit across 12 cards.

thom02099
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Postby thom02099 » Sat Oct 04, 2014 9:01 pm

otter wrote:I've seen a few of the people on FICO cite that as a reason they've been rejected- typically they've been people with 20-40k income and ridiculous amount of available credit 250k-500k.


Bingo! There seems to be an inordinate number of folks over there who consider managing credit as a competitive sport.

I have more than 2 times my income as my credit limits and am perfectly happy with that. I was not turned down for anything that I applied for, but my applications had a purpose at the time. I've not applied for anything for a while and watching the inquiries fall off, all the while getting some automatic credit limit increases. Since I'm planning to retire very soon, I'm seriously looking at closing some of the accounts that I have but don't use that often, or to merge a couple of cards (BofA and Merrill Lynch) into one account. Do I NEED over $130K in credit? No. Does it help utilization? Absolutely.
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EQ = 846 EX=828 TU = 836 as of 02/2016

hockeyplayr
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Postby hockeyplayr » Sun Oct 05, 2014 9:12 am

thom02099 wrote:Bingo! There seems to be an inordinate number of folks over there who consider managing credit as a competitive sport.

I have more than 2 times my income as my credit limits and am perfectly happy with that. I was not turned down for anything that I applied for, but my applications had a purpose at the time. I've not applied for anything for a while and watching the inquiries fall off, all the while getting some automatic credit limit increases. Since I'm planning to retire very soon, I'm seriously looking at closing some of the accounts that I have but don't use that often, or to merge a couple of cards (BofA and Merrill Lynch) into one account. Do I NEED over $130K in credit? No. Does it help utilization? Absolutely.


I definitely don't need what I have and I honestly wouldn't have as much if Diners Club didn't slap me with a 20k limit, which honestly to me based on my income is ridiculous. BUT as you mentioned my utilization is always under 10% . Don't make enough to even spend close to 10% in a month.
Credit Scores: Equifax - 736 (October Fico) | Experian 726 (October Fico) | TU - 758 (October Fico)

Credit Lines: Diners Club 20k | Citi DC 9.1k | SDFCU 5k | Penfed 7k | Amex BCE - 10.5k | Chase Marriot - 5.2k | CSP - 6.5k |Discover IT - 9k | Sallie Mae 3.8k | Citi TYP - 3.5k | BOA 123 - 4.9k | Total Rewards 3.25k|

takeshi
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Postby takeshi » Mon Oct 06, 2014 12:31 pm

MemberSince99 wrote:Personally I would not worry about this until a lender points it out as a negative to you

^ This. It's an issue if it's an issue with a creditor that you want to use. I know I'm at my my limit with Chase so if I wanted more credit with them it would be an issue. I'd have to reallocate credit.

@SoFla wrote:But can it hurt you as some lenders may see it as available debt.

It's certainly a risk factor but available credit and debt are not the same thing.

popamode72 wrote:Some people have said that it's possible to have way more credit than what you report as your income.

I'm ~1.7x and that's nowhere near the highest I've seen. Available credit higher than income isn't unusual.

Berk wrote:I can't imagine how too much available credit could hurt you.

A given creditor can be concerned about extending credit to you if the credit available to you is at or exceeds what they're comfortable with for you.

Berk wrote:However, if they have a good history of low utilization then one would think that the lender would be impressed with their use of credit.

Low utilization helps but that's just one factor to consider. Low utilization doesn't automatically grant one infinite credit limits.

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Postby websteth » Tue Oct 07, 2014 4:30 pm

When I was younger and didn't really know about how to play the game, I applied for various cards and I did get a letter back once that said it was denied due to having too much credit out there compared to my income, I was a student at the time. So I do know some lenders will look at this compared to what you listed as your income. I hope that helps.
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