This isn't even a new thing. Way back in the mid-90's I bought a house, no down payment, 98% financed with a state grant to cover the closing costs and the rest, and I was told I had too high of a CL on my only CC, it was around $5000 (it was a student card and I was still in school). The bank didn't like it and made me request a lower limit of just $1000. A few months after closing I called and had it raised again. Obviously my situation was a little unique as I was still in school and didn't have much of an income.
MidnightVoice wrote:Yes there is - nowadays some mortgage companies are looking at total available credit, and sometimes they tell customers they have too much.
Since we're not going anywhere soon in mortgage land, I'm not worrying about scaring them off.
I came up with a completely different set of targets:
total bank/ CU card CL equal to or a bit more than annual income each bank card with a CL in 5 figures, i.e. $10K or more each store card with a CL in 4 figures, i.e. $1K or more
There's probably some reverse reasoning involved in this, as my ultimate goal is 5 or 6 good CU and bank cards, plus a smattering of store cards, so I wound up looking at my current CU CL's and working the difference for the rest.
I didn't say household income.
A total CL amongst all cards equal to or greater than household income?
If you're living in a major urban area and have two white collar professionals working full time, that could be a pretty dang huge credit line....enough to buy a house in some places.
What's your reasoning for picking that particular value?
I'm thinking very strongly of refinancing out of my ARM with NFCU in the foreseeable future. Hopefully they won't have an issue with too much available credit.
I have about 25 percent more than my annual income in available credit. However, it's across several accounts with fairly substantial CLs.
The way they have been so far I don't see it being an issue, but this thread has me worrying.