Is too much credit bad?

For just about anything you want to get off your chest about credit cards.
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MemberSince99
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Postby MemberSince99 » Mon Jul 15, 2013 6:40 am

RewardHop wrote:Thanks for the replies



I have one card thats inactive (NFL Reward Visa), so I'm expecting to lose that any day now. That will bring me down to just below $53k total limit.

What do you think is a good multiple then? ie should your total income be X times your total credit limit. In your example, X = 3.


I'm not sure there is any "magic" number. It only really possibly becomes an issue if you go for a mortgage or another card and are told basically you have too much potential for damage. Otherwise I know of no way anyone can say "Yes at more than 1X annual income you are hitting the red zone, at 2X you won't get a mortgage, at 2.57X you can't get a new credit card and at 3X they call in Seal Team 6 to take you out as the terrorist of credit you've become". I don't know of any such thing. I have read of people on FICO having 3X their liimit and not reporting problems. I'm sure they look at your whole history and determine what risk they are comfortable with based on that.

Don't overthink the hell out of things to which there simply are no hard rules just do what you feel is best for you and if anyone has a problem they'll sure let you know.


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