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Can someone have too much credit?

Established Contributor

Can someone have too much credit?

Just a curious question! Is it possible?!  Smiley Happy

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
7 REPLIES
Mega Contributor

Re: Can someone have too much credit?


S7 wrote:

Just a curious question! Is it possible?!  Smiley Happy


Yes. It all depends on your annual income compared to your cuurent CL's. Some lenders will decline for too much available credit.

 




EQ FICO 548 3/3/16
Established Contributor

Re: Can someone have too much credit?

So if your available credit is way more than your annual income, they see that as a red flag? (hope im not making this more complicated than it is, lol)

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
Regular Contributor

Re: Can someone have too much credit?


S7 wrote:

So if your available credit is way more than your annual income, they see that as a red flag? (hope im not making this more complicated than it is, lol)


Definitely. It will spook a creditor into thinking that if you get into trouble and charge a significant amount you wont have the income to pay it off in an appropriate time. 

Established Contributor

Re: Can someone have too much credit?

Makes perfect sense.  Smiley Happy Thanks!  (no worries here, my highest CL is $1,200.00 LOL!

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
Mega Contributor

Re: Can someone have too much credit?


omskillet wrote:

S7 wrote:

So if your available credit is way more than your annual income, they see that as a red flag? (hope im not making this more complicated than it is, lol)


Definitely. It will spook a creditor into thinking that if you get into trouble and charge a significant amount you wont have the income to pay it off in an appropriate time. 


Or it will look like your apping for cards just for the sign up bonuses which creditors frown on

 




EQ FICO 548 3/3/16
Senior Contributor

Re: Can someone have too much credit?

I think it depends on your personal preferences as well as a lender's preference!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Frequent Contributor

Re: Can someone have too much credit?

It is possible to have too much credit.  I think I have too much credit right now.

 

But, it is all about how your file is and the stats.

 

There is a person widely known on another forum that is a master at Credit.  He has 66 tradelines with an amazing over 1 milliion of credit lines.

 

He credit score is still in the low 800's, and has reached as high as 840.  From what I can tell he is not super rich either. 

 

It is all about the game, the score, the limits, the AAoA.

 

I am sure when I go for a home loan next year the loan officers will tell me I have too much credit and that I will need to close some lines.

 

To date I have never been declined for credit because I have too much credit.  Usually denied for too many inq's or too many recent accounts.

 

But I am gardening now to let everything age.

About 400k in Credit Lines
CSP 29.9k, Citi DP 42.5k, Chase Marriott 12k, Chase IHG 6.5k, Sams MC 20k, Amex Hilton Surpass 356k, Hawaii Air 26k, Discover More 50k, Chase SWA 3.5k, WF PLOC 30k, B of A Visa 43.8k, Wells Plat Visa 8.3k, RC Willey 5k, Pen Fed Visa 43.7k, Pen Fed PLOC 25k, Lowes 25k, CSR 28.8k