How available credit impacts score / approvals

[lord_kinbote]

Currently, I have CL of about 34k spread accross five cards.  Maintain 0 balances (pay before statements are cut) except for 1 card that has the highest CL - and keep the utilization below 5%.  My question is, does the avail credit hurt my position or strengthen?  I can see two perspectives from the lending world; 1. Responsbile  or 2. Could easy go into debt, so why extend more credit.  So which carries more weight?

[Ghoshida]

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@akula wrote:

Currently, I have CL of about 34k spread accross five cards.  Maintain 0 balances (pay before statements are cut) except for 1 card that has the highest CL - and keep the utilization below 5%.  My question is, does the avail credit hurt my position or strengthen?  I can see two perspectives from the lending world; 1. Responsbile  or 2. Could easy go into debt, so why extend more credit.  So which carries more weight?

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Each lender has their own norm, and they take your income into consideration.

[lord_kinbote]

Currently my avail credit in only 1/4 of my income.  How would lenders in regards to credit cards, know my income?  I thought this information was not collected by the CRAs?

[Involver]

They ask for income on apps...

[longtimelurker]

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@akula wrote:

Currently my avail credit in only 1/4 of my income.  How would lenders in regards to credit cards, know my income?  I thought this information was not collected by the CRAs?

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When you apply, one of the questions is your income.

[lord_kinbote]

Ok, understood.  I would not mind verification, but I have never been asked for documentation on income that was inputted on an online approval - so I didn't think much weight would be placed on the answer.  Obviously, someone could just put a salary higher then their own in order to help the process - and balk if asked.

[s_haliz]

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@akula wrote:

Currently, I have CL of about 34k spread accross five cards.  Maintain 0 balances (pay before statements are cut) except for 1 card that has the highest CL - and keep the utilization below 5%.  My question is, does the avail credit hurt my position or strengthen?  I can see two perspectives from the lending world; 1. Responsbile  or 2. Could easy go into debt, so why extend more credit.  So which carries more weight?

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Here is my own take on this. Lender also do look as to how long you had managed that credit line. So say if someone has $50K limit credit card that he/she had amanged for 15 years with no issue at all. Lender would be willing to extend him a credit. Even though risk do exist.