TOO much Available Credit?

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@SoFla
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TOO much Available Credit?

Postby @SoFla » Fri Oct 03, 2014 10:24 am

Is this possible? It seems the higher the credit limit the better...the more available credit could benefit your credit utilization score, yes? But can it hurt you as some lenders may see it as available debt.

I see your income as a key factor here, i.e.) if your available credit is greater than a certain percent % what what your income is, this could affect you in a negative way?

Does anyone have any thought on this, am I on the right track?

This would help me in my decision to ask for a CLI, even when I do not necessarily need one...?

Thanks in advance.


popamode72
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Postby popamode72 » Fri Oct 03, 2014 10:26 am

That's something I've always wondered about too. Some people have said that it's possible to have way more credit than what you report as your income.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

MemberSince99
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Postby MemberSince99 » Fri Oct 03, 2014 10:32 am

It is possible. I've approached my income several times and in fact my total limits are not that far under my income. Had I not closed a few cards recently, especially the Associated with an over 20k limit, i'd be over my income with total limits.


Personally I would not worry about this until a lender points it out as a negative to you. Then determine if you really care - if you really want to do business with them then address it, otherwise don't sweat it. No point worrying about a problem that doesn't exist.

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otter
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Postby otter » Fri Oct 03, 2014 1:19 pm

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.
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

hockeyplayr
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Postby hockeyplayr » Fri Oct 03, 2014 5:57 pm

I have a 36k listed income and im pushing close to 90k in credit. Haven't had a denial yet.
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|

popamode72
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Postby popamode72 » Fri Oct 03, 2014 6:16 pm

hockeyplayr wrote:I have a 36k listed income and im pushing close to 90k in credit. Haven't had a denial yet.


That makes me very relieved because that had been a main concern of mine for a while now. Getting past my reported income in credit and being denied for more because of that.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

Berk
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Postby Berk » Fri Oct 03, 2014 6:27 pm

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?
Fico Scores 05/25/2015
Equifax 766
TransUnion 788
Experian 797

Over $140,000 in credit across 12 cards.

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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Oct 03, 2014 7:06 pm

A lot of the big credit limits come on credit union cards with mediocre rewards.

Until I get into the travel hacking game, I don't want to have cards that I won't use often with issuers I don't have any other business with.

I see no reason why anyone with a low-to-mid 5-figure income needs 6 figures of credit card limits.
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 7:59 pm

CarefulBuilder14 wrote:A lot of the big credit limits come on credit union cards with mediocre rewards.

Until I get into the travel hacking game, I don't want to have cards that I won't use often with issuers I don't have any other business with.

I see no reason why anyone with a low-to-mid 5-figure income needs 6 figures of credit card limits.


It's the thrill of the chase. After getting the few cards that offer the best rewards it just becomes a game for some of us. Like trying to get a penfed card since they are known to be super conservative.
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 8:19 pm

hockeyplayr wrote:It's the thrill of the chase. After getting the few cards that offer the best rewards it just becomes a game for some of us. Like trying to get a penfed card since they are known to be super conservative.


I can see the game aspect, but investing is a more fun game.

As long as I can put two weeks' of spending on my cards in whatever manner maximizes my rewards, and the balances after two weeks don't alarm any of my creditors, I'm happy.

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.
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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