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Contributor
wche
Posts: 116
Registered: ‎01-29-2013
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Having Too Much Credit Relative to Income?

I recently went on a mini app spree and increased my total trade lines to 25.9k. I am 23yo and my reported income is 40k. I definitely do not utilize my trade lines too much and keep my util rates below 9%. 

 

Something that worries me in the future is that if I apply for more credit (loans, mortgages), will creditors see me as a risk for over-extending credit to me after seeing how much available credit I have relative to my income? At what point does one get into dangerous territories as creditors weigh how much your income can support your CLs? 

BOA Better Rewards: 5K | Citi Forward: 8.6K | Chase Freedom: 10K | Discover IT: 7K | Amex BlueSky: 12.4K | Chase IHG: 5K | Sallie Mae: 9K | Chase CSP: 8.4K | Barclays Rewards 3k

TU FICO 771
Contributor
wche
Posts: 116
Registered: ‎01-29-2013
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Re: Having Too Much Credit Relative to Income?

I want to apply for the Walmart Discover for the free TU score, but I don't want to increase my available credit as to spook future creditors! Also would it be wise to request the 3x AMEX CLI after 61 days? I honestly won't be using my AMEX all too much other than getting the bonus offer...may PC it to a BCE after a year

BOA Better Rewards: 5K | Citi Forward: 8.6K | Chase Freedom: 10K | Discover IT: 7K | Amex BlueSky: 12.4K | Chase IHG: 5K | Sallie Mae: 9K | Chase CSP: 8.4K | Barclays Rewards 3k

TU FICO 771
Super Contributor
enharu
Posts: 6,913
Registered: ‎02-27-2013
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Re: Having Too Much Credit Relative to Income?


wche wrote:

I recently went on a mini app spree and increased my total trade lines to 25.9k. I am 23yo and my reported income is 40k. I definitely do not utilize my trade lines too much and keep my util rates below 9%. 

 

Something that worries me in the future is that if I apply for more credit (loans, mortgages), will creditors see me as a risk for over-extending credit to me after seeing how much available credit I have relative to my income? At what point does one get into dangerous territories as creditors weigh how much your income can support your CLs? 


Yes, it might happen. But it also might not.

It really depends on the policies of the bank that you're talking to. Every bank has different policies on risk.

Some see it as good thing that so many other banks (or even their own) is willing to extend you so much credit; that might mean you're trustworthy to a good extent. Some see this level of credit as an increased risk exposure, and it is hard to say what % credit to income is the tipping point.

 

If your AAoA is high, and you have a solid credit history for many many years, then banks probably won't worry as much because it has been proven that you are able to handle high amounts of credit given to you.

 

Anyways, don't worry too much about it. If some banks decline you for this reason, you can always counteroffer by offering to close some accounts or have credit limit decreased on your account(s).

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Super Contributor
enharu
Posts: 6,913
Registered: ‎02-27-2013
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Re: Having Too Much Credit Relative to Income?


wche wrote:

I want to apply for the Walmart Discover for the free TU score, but I don't want to increase my available credit as to spook future creditors! Also would it be wise to request the 3x AMEX CLI after 61 days? I honestly won't be using my AMEX all too much other than getting the bonus offer...may PC it to a BCE after a year


Go ahead and request for 3X. If you won't use it much you can request 2X. Of course, you can just leave it as it is. Nothing will be affected.

I would always say go ahead and get a higher CLI on existing accounts is the best wy to do things, rather than to apply for new accounts just to get higher overall CL. 
If some banks really do give you issues on this in the future, you can always decide to bring your business elsewhere. Even if you absolutely have to deal with that bank, you can always offer to have your limits decreased or accounts closed. Problem solved then.


Your income and credit score/report are the MOST important factors to any kind of credit or loan app. Any other negatives can be worked around relatively easy.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
New Contributor
OwNt
Posts: 62
Registered: ‎10-07-2007
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Re: Having Too Much Credit Relative to Income?

I personally wouldn't worry too much about obtaining future creditI have several magnitudes more credit than I do annual income, and I don't get declined when I apply for more.

 

Once you start reaching 4-5x your annual income, creditors may start to notice. Even then, it still all depends on the creditor. Some are much more conservative than others.

~~Credit Cards~~
Alliant Platinum Rewards Visa, AmEx BCP, BofA Power Rewards, Bank of the West Platinum, Barclay Rewards World MC, Chase Freedom/Chase Sapphire Preferred, Citi Thank You Preferred/Citi Dividend Select, Discover IT, FNBOmaha, Paypal MC, US Bank Cash+/US Bank Perks+.

Total: $300,000+ in lines.
Established Contributor
NJTurnpike
Posts: 662
Registered: ‎02-20-2013
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Re: Having Too Much Credit Relative to Income?


wche wrote:

I want to apply for the Walmart Discover for the free TU score, but I don't want to increase my available credit as to spook future creditors! Also would it be wise to request the 3x AMEX CLI after 61 days? I honestly won't be using my AMEX all too much other than getting the bonus offer...may PC it to a BCE after a year


Don't waste your AMEX 3x CLI by not requesting it. by all means, request it! once you get it, request for a PC to BCE if you want.

 

you can back door into your experian report by finding something *legitimate* to dispute on your report. Once you get the results of the dispute, you have daily updated access for 3 months. if you want relative scores, Creditkarma works fine and keeps track of changes in your report.

 

its a toss up whether the you should get the wally card just for the score. the TU08 score is nice, but I rather have daily report updates than a monthly score. if you don't plan on applying for any car loans or mortages in the next year or two, go for the walmart card and free score.


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
CreditKarma (4/19/13) TU-TR 701 | TU Vantage 788 | USAA FAKO (3/31/13) EX 728, EQ 699, TU 737 |
Inquiries (4/18/13) EX 13 | EQ 13 | TU 14
Super Contributor
enharu
Posts: 6,913
Registered: ‎02-27-2013
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Re: Having Too Much Credit Relative to Income?


NJTurnpike wrote:

 

you can back door into your experian report by finding something *legitimate* to dispute on your report. Once you get the results of the dispute, you have daily updated access for 3 months. if you want relative scores, Creditkarma works fine and keeps track of changes in your report.

 


how do u do that? i checked with my gf. she has an auto loan inquiry by bank of america that was declined. bank of america pulled experian. there is only an app number, no report number. how can she get those daily updates?

in order to have something to dispute on my report, i need to first buy a report from experian, right?

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Contributor
wche
Posts: 116
Registered: ‎01-29-2013
0

Re: Having Too Much Credit Relative to Income?


enharu wrote:


NJTurnpike wrote:

 

you can back door into your experian report by finding something *legitimate* to dispute on your report. Once you get the results of the dispute, you have daily updated access for 3 months. if you want relative scores, Creditkarma works fine and keeps track of changes in your report.

 


how do u do that? i checked with my gf. she has an auto loan inquiry by bank of america that was declined. bank of america pulled experian. there is only an app number, no report number. how can she get those daily updates?

in order to have something to dispute on my report, i need to first buy a report from experian, right?

 


For me, I pulled my EX report from annualcreditreport and I have the option of a daily update. I will definitely use that to track AMEX SP before the 3x CLI. My only concern is that AMEX will be spooked to provide me a limit that is 1/3 of my income that I will barely use.. :smileysad:

BOA Better Rewards: 5K | Citi Forward: 8.6K | Chase Freedom: 10K | Discover IT: 7K | Amex BlueSky: 12.4K | Chase IHG: 5K | Sallie Mae: 9K | Chase CSP: 8.4K | Barclays Rewards 3k

TU FICO 771
Established Contributor
NJTurnpike
Posts: 662
Registered: ‎02-20-2013
0

Re: Having Too Much Credit Relative to Income?


wche wrote:

enharu wrote:


NJTurnpike wrote:

 

you can back door into your experian report by finding something *legitimate* to dispute on your report. Once you get the results of the dispute, you have daily updated access for 3 months. if you want relative scores, Creditkarma works fine and keeps track of changes in your report.

 


how do u do that? i checked with my gf. she has an auto loan inquiry by bank of america that was declined. bank of america pulled experian. there is only an app number, no report number. how can she get those daily updates?

in order to have something to dispute on my report, i need to first buy a report from experian, right?

 


For me, I pulled my EX report from annualcreditreport and I have the option of a daily update. I will definitely use that to track AMEX SP before the 3x CLI. My only concern is that AMEX will be spooked to provide me a limit that is 1/3 of my income that I will barely use.. :smileysad:


You do not need to buy your report from experian to dispute stuff on your experian report. usually you can access your experian report anytime to file a dispute. http://www.experian.com/disputes/main.html


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
CreditKarma (4/19/13) TU-TR 701 | TU Vantage 788 | USAA FAKO (3/31/13) EX 728, EQ 699, TU 737 |
Inquiries (4/18/13) EX 13 | EQ 13 | TU 14

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