Is too much credit bad?

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RewardHop
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Is too much credit bad?

Postby RewardHop » Thu Jul 11, 2013 12:57 am

Lets ignore the number of credit cards. Is having too much available credit limit bad? What is considered too much?

I currently have just under $60k available credit limit with all my cards combined and I'm hoping to in the next 2-3 years raise that to $100k. A friend was saying thats a bad idea because lenders will go why do you have all this credit that you don't use and some other reason. What are your thoughts?
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Postby DONx3 » Thu Jul 11, 2013 1:19 am

Wow I only have 30k I thought that was too much. I would like to have around 50k in the future.
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MemberSince99
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Postby MemberSince99 » Thu Jul 11, 2013 6:50 am

It just really depends. If your income is 300k a year, no one is probably going to look twice at 100k in cards. Otherwise at some point, lenders may start to worry about that, and a mortgage officer may be concerned as well. If that happens, close whatever you want to keep least, or don't do business with the companies having an issue with it.

As long as you can handle it and no one else has a problem, you shouldn't either.

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Snowman
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Postby Snowman » Thu Jul 11, 2013 2:13 pm

It depends I think. I make about 12k a year (this figure should rise to 18k because I got more hours at another store so I figure that will be the amount +tips) and I have 10k currently in credit.
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Postby MemberSince99 » Thu Jul 11, 2013 2:34 pm

Hey Snowman, good to see you, how are you and how have you been? I hope well.

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Postby Snowman » Thu Jul 11, 2013 3:14 pm

Hi member! I've been good, I just went to my cousin's wedding down in Florida (I requested a week from work) and then I spent the last 3 days exploring Disneyland with some family and friends and came back Tuesday night. I've also got summer school so that is keeping me busy as well (Also, Ramadan has started. It is basically the month of fasting for Muslims, so it can be tiring since we don't have any food or water from sun up to sun down) and then I've got work as well which is keeping me rather busy. Other then that, I'm doing well. And you?
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Postby MemberSince99 » Thu Jul 11, 2013 3:25 pm

Glad to hear it! So did you go to Disneyland then locally where you live? How about Disneyworld when you went to FL?

Really you can't have any water? Isn't that dangerous if you are outside in the heat? I bet that is tough!

I'm doing good keeping busy working and with my hobbies and a new romantic interest you know how that goes! :) It's good to see you back!

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Postby Snowman » Thu Jul 11, 2013 3:38 pm

Member- No I didn't, I went to Disneyland (near my home) during spring break in April, but I hope to go again before the summer is over. I did go to Disneyworld in FL (my bad for saying it incorrectly) I went to Epcot, Magic Kingdom and Animal Kingdom (each day was pretty long though. Got to the park at 10-11 in the morning, didn't go back to the hotel until 9-10 at night.)

In the month of fasting (Ramadan as it is known in Islam) we are not permitted to have any food or water from sun up until sun down. Yeah it could be dangerous, but thankfully I work inside so It's not as bad (though the smell of food is pretty tempting). It can be pretty tough but after a while your body gets used to it and you learn to deal with it. You just don't think about it during the day, just pray the way you usually would do and so on and just wait it out or spend time doing something if your not working or in school, and the next thing you know, Ramadan is over and things become normal again, however it is a month long...

LOL, I know how that goes! Good to see you as well and speak with you again too!
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Postby takeshi » Sat Jul 13, 2013 5:11 pm

RewardHop wrote:Lets ignore the number of credit cards. Is having too much available credit limit bad?

Same answer applies: one factor means nothing by itself and it's up to what one can responsibly handle.

What's "too much" credit? Keep in mind that on any topic "too much" is always highly subjective.

RewardHop wrote:A friend was saying thats a bad idea because lenders will go why do you have all this credit that you don't use and some other reason. What are your thoughts?

As always, consider the source. Is your friend an underwriter or someone else knowledgeable in the field? Lenders vary in what they're looking for and to what degree. If you're applying to a specific lender then their notion of "too much" is what matters. As stated above, if it's an issue then you can close accounts.

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Postby RewardHop » Mon Jul 15, 2013 1:24 am

Thanks for the replies

MemberSince99 wrote:It just really depends. If your income is 300k a year, no one is probably going to look twice at 100k in cards. Otherwise at some point, lenders may start to worry about that, and a mortgage officer may be concerned as well. If that happens, close whatever you want to keep least, or don't do business with the companies having an issue with it.

As long as you can handle it and no one else has a problem, you shouldn't either.


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.
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Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities

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Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com

Discover It: 5% rotating

SallieMae MC: 5% Groceries, Gas, Amazon

US Bank Cash+ Visa Signature: 5% electronic stores, restaurants

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