@Anonymous wrote:
I think his mom is correct. He earns 18k annually and spent 2k on a gift (13% of his net income). If he plans on repaying before the 0% intro ends, he'll be paying approximately $286/month. Ask him if that's feasible on his $1,275 per month net income. Just sayin...
While I don't want to beat a dead horse (his limit has already been lowered by request), I'm going to have to strongly disagree. I don't think it's smart to request a CLD under any circumstances.
Just because he has a $7k limit does not mean he has to use it. A high limit will help him a TON for higher limits on cards he might get in the future, and it will help with utilization if he elects to allow a balance to post to the CRAs.
He was EXTREMELY lucky to even get approved for Citi Forward, let alone get that limit. They've been denying people for 2 inquiries on Experian recently, and many have said they were denied for lack of history with a revolving account older than 12 months. No need to rain all over the parade by slashing a God-sent limit.
However, I do agree that a $2,000 gift spree is way too steep for that income, especially since you listed your savings as $2,200. While it's none of my business how your spend your money, those types of purchases are probably what's worrying your mother.
Some words of wisdom:
Keep mom and dad out of your finances. I used to think my mom was some sort of credit guru because of her high scores, but a week after joining these boards I learned that she was pretty clueless in a lot of areas. For example, she swore to the heavens that pulling your own credit report (not applying for anything) would lower your score. She fought and fought and fought me on this until I showed her otherwise from many different sources. I'm rambling, but you get the idea. Mom doesn't ALWAYS know best, and it's probably in your best interest to deal with your money/credit on your own (unless you're in some serious trouble and need somebody to bail you out).
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EQ FAKO: 779 (03/26/15)
TU FAKO: 785(03/26/15)
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