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Senior Contributor
bichonmom
Posts: 3,300
Registered: ‎05-05-2011

Can you have too much avail credit?

Way back in the 80s, when I first had credit -- and still had good credit -- I was declined for credit because I had "too much unsecured credit." Or something like that. I guess maybe my total CLs weren't substantiated by my annual income, is my guess. Or maybe it was my DTI at the time.

 

So, now that I'm rebuilding, I'm trying to be cautious and strategic. I have stayed away from store cards, which I had a ton of before, except for Walmart (for the FICO, mostly). And I've worked to get CLIs w/my bank CCs. So, now I'm wondering when to stop asking for CLIs. Or if I need to be a little more strategic about which ones to CLI.

 

I was doing CLIs on Walmart and Old Navy every 4 mos, like clockwork. My ON was upgraded to a Visa $4k on my 1 yr anniv. Walmart is @ $2k for the store card. I'm not using the ON Visa because the rewards just aren't there for me, and I'm having enough of a challenge juggling the cards I'm using. I know I should use it for something before GE closes it on me. Though, really, I'm not sure that would be all bad, since I'm not using the card anyway. I'd rather have that $4k as a CLI on another card.

 

So, I'm kind of at a standstill w/my 2 GE cards and don't know what I should do. I read a post today with a ginormous Walmart CL. But even if I CLI'd my way there, what would be the point? I rarely shop there. Again, I'd rather have the CL going to a card I use. I almost tried for a Walmart CLi online today, but I'm afraid if my CLs get too high with cards I don't really use, then the other cards I DO use won't CLI me, because my total CLs will already be too high, from the cards I rarely use. I hope that makes sense! :smileysurprised:

 

How do we determine if and when to stop asking for CLIs on certain cards? Can you have *too much* avail credit/total CLs?

 

I'd really appreciate hearing others' thoughts on this. :smileyhappy:

 

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Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Valued Contributor
visorboy1974
Posts: 1,101
Registered: ‎05-17-2010

Re: Can you have too much avail credit?

I do not believe you can have too much credit...

Contributor
ricefed
Posts: 116
Registered: ‎02-17-2011

Re: Can you have too much avail credit?

I believe there is a point where banks will turn you down for having too much available credit. I boosted my store card limits end of October to help me get new credit cards. I applied for a chase freedom in September this year and they denied me even after recon twice. October came and I decided to try something. My utilization was at 42% so I called ge underwriters for amazon from 4400 to 10,000- lowes 1200 to 6700- Walmart I got an auto increase from 1300 to 2600. I called Walmart the same day as the auto increase and asked to go up to 8000 and was approved. Those three increases took my utilization down to 21%. I waited for all three to update on my reports. My Walmart fico went from a 639 to a 690. When I saw that I went to chase and applied for the csp and was instant approved for 6900. I wanted to do a balance transfer from my NFCU card so when I got home I applied online for the chase slate and got the 7-10 message. I checked 3 hours later and found out I was approved for 6000. One month prior I couldn't get a freedom with even a 500 limit lol. So basically the high limit on store cards can help ALOT lol.
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Established Contributor
snowkitty
Posts: 959
Registered: ‎09-10-2012

Re: Can you have too much avail credit?

bichonmom ..... I see where you are coming from. I remember when I first started getting credit cards in the 90's, you could have to much credit. I was always told that. The creditors counted every bit of the credit limit you had against you because you could use it at anytime. Now it looks like it's different and it confuses me at times. I too see people with really high limits on store cards and wonder why they would want a 10,000 credit line at walmart or where ever. I know utility plays a big part of it but I am trying to get it all sorted out in my mind too. :catwink:

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Valued Contributor
jsickz32
Posts: 1,987
Registered: ‎06-25-2012

Re: Can you have too much avail credit?

I dont know about having too much credit but i agree about the high limits on store cards. I think 3k on my walmart card is enough.
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Valued Contributor
madmann26
Posts: 1,313
Registered: ‎08-30-2012

Re: Can you have too much avail credit?

I think a lot of it comes down to personal habits. If you are disciplined enough, then your total available credit line isn't probably a dig deal to you. For someone that has problems with self control, even a single $5000 CL can get one into mounds of trouble.


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Established Contributor
bettercreditguy1
Posts: 688
Registered: ‎02-11-2012

Re: Can you have too much avail credit?

+1, You can not have too much credit and the time to secure credit is when you do not need it. As stated earlier, some people must use the available credit limits. When credit is not used as a positivel tool, that is safety from carrying too much cash say for christmas shopping, vacations, etc. then it can create financial havoc and allow or perpetuate an unsustainable life syle and impulse purchasing for un-needed or useful items. The later is what creates the problems.

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Valued Contributor
Repo-ed
Posts: 2,949
Registered: ‎02-09-2012

Re: Can you have too much avail credit?

Institutions can certainly soft you and CLD you, if they so choose

Established Contributor
LesWH
Posts: 608
Registered: ‎10-11-2012

Re: Can you have too much avail credit?

[ Edited ]

madmann26 wrote:

I think a lot of it comes down to personal habits. If you are disciplined enough, then your total available credit line isn't probably a dig deal to you. For someone that has problems with self control, even a single $5000 CL can get one into mounds of trouble.


+1 to This! I am one of the ones that got a credit limit increase to $9,500 on my Walmart card.  I also have a $20,000 Visa.  My utilization is at 2%.  This type of a situation is one where your particular situation is unique to YOU.  Only you can control your finances.  If someone doesn't want a high limit on a store card, they shouldn't try to get one.  Period.  If someone does, then it is entirely up to them.  The bottom line remains, like madmann26 said, you have to use what you have responsibly.  It is when you don't use what you have responsibly that you get into trouble.  That is one fact that is a constant to everyone.  I never try to judge what someone else may or may not be doing based on my own situation or what I would or wouldn't do or what I do or don't understand.  That doesn't work, and frankly, it isn't right.  What works for one person may or may not work for another, but never base your life on what someone else does or doesn't do, or what works or doesn't work for someone else.  Most people have a hard enough time worrying about their own business to be worried about someone else's!  Additionally, if the Banks start to think that I have too much available credit, THEY will let me know.  So far, they don't seem to think so! Until that time happens, if I can get CLI's, that's what I'm gonna do! :womanlol:


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Established Contributor
Cdnewmanpac
Posts: 759
Registered: ‎01-16-2012

Re: Can you have too much avail credit?

I don't think the OP is asking about having more credit than she can handle, which is a separate issue. The answer to the OP is yes, per certain lenders. Citi is famous for declining people because existing credit is sufficient for income. Chase has a fixed amount they are willing to give to any individual, but doesn't seem to care what other limits are. So the "danger" would be that you get high limits on cards you don't use, then get declined on a card you want for this reason. Worst case scenario, you get a rejection letter with this reason, call to clarify, then close or voluntarily cld one of your unused cards, then reapply. This would be a very rare scenario and one that could be fixed retroactively, so I wouldn't turn down CLIs to avoid it.

I've never seen the appeal of store cards, since with time, prime card limits rise. I know GE gets you there faster, but I'm in this for the long haul. That being said, if you have the cards, you might as well get their prime benefit (rapidly rising limits).

Short answer: yes, rare, unlikely, can always cancel or cld if a real issue.

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