CC Limits v. Income - Advice Needed Please!

[longtimelurker]

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@Cdnewmanpac wrote:
The problem with only requesting what you "need" is that issuers don't like to extend credit to those who need it. The reason to have generous credit limits when you don't need them is that they will be there when/if you do. It also allows you to spend "large" amounts (relative to typical spend) without exceeding 20% utilization on any given card. Additionally, high limits give you the option to leverage your credit for large purchases when doing so makes economic sense (adding a bathroom to your house today, using a zero interest card for 12-18 months, then paying off the balance with a fixed interest personal loan, for example).

To the OP: If you have an AF and don't benefit from the card, close it regardless of limit.

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While I agree, I think this slightly contradicts your earlier statement (depending on how you define benefit).  For example, it might be worth paying a $25 AF for a card with $100K limit, even if you currently don't use it all, against the day you might suddenly need credit.

[Cdnewmanpac]

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@longtimelurker wrote:

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@Cdnewmanpac wrote:
The problem with only requesting what you "need" is that issuers don't like to extend credit to those who need it. The reason to have generous credit limits when you don't need them is that they will be there when/if you do. It also allows you to spend "large" amounts (relative to typical spend) without exceeding 20% utilization on any given card. Additionally, high limits give you the option to leverage your credit for large purchases when doing so makes economic sense (adding a bathroom to your house today, using a zero interest card for 12-18 months, then paying off the balance with a fixed interest personal loan, for example).

To the OP: If you have an AF and don't benefit from the card, close it regardless of limit.

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While I agree, I think this slightly contradicts your earlier statement (depending on how you define benefit).  For example, it might be worth paying a $25 AF for a card with $100K limit, even if you currently don't use it all, against the day you might suddenly need credit.

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I was being specific to OP's cards and to the OP's interpretation of benefit.

[OptimalCS]

We re making a lot of assumptions here.

I myself I'm no convinced that most banks take the time to analyze the details of our existing accounts.

There's no definitive evidence.

[pt310]

Wow! Thanks for all the replies and great advice! Special thanks to those who took the time to list out their cards and limits for comparison, that was very helpful!

I understand that I have more credit available than I would ever use, and agree with the statement that you should have it that way, for utilization and in case of emergency. I know from past experience that it can be incredibly hard to obtain credit (and good terms) when you're in a position to really NEED it. I hope I will never know that feeling again.

I'm going to begin closing unnecessary accounts as the AF's come due, unless they become useful by being able to PC to something else, or to move limits around. I sure hope CapOne will start letting us do this ~ they are first on the chopping block come December!