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How much credit is too much credit?

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HoahCredit
Regular Contributor

How much credit is too much credit?

I have seven credit cards total. Some have over 10K CL and the others bit less then 10k CL. Do any one knows whether this is good? How many ccs are enough? Will I encounter any issues later on with this much credit? What are your thoughts?

!!!! I'm on gardening mode !!!!

EQ FICO 779; TU FICO 783; EX FAKO 821
In my wallet: USAA AMEX, USAA World MasterCard,Service Credit Union Platinum Visa, Chase MasterCard, Chase Sapphire Preferred, Discover More Card, American Express Gold, American Express Platinum, Chase Continental One Pass


Message 1 of 24
23 REPLIES 23
Creditaddict
Legendary Contributor

Re: How much credit is too much credit?

as long as you manage them all well and don't have balances reporting on all 7 each month and keep util low on most if you carry larger balance on like 1 you should be fine and have no troubles... especially with the Credit Unions, they are not so knee Jerk when it comes to rash moves like Chase, BofA, Citi!

Message 2 of 24
HoahCredit
Regular Contributor

Re: How much credit is too much credit?

I rotate credit cards every three months or so, and I still want to apply for one more credit card; however, does having too much available credit hurts credit? That's what I read on other forums. Is this accurate?

!!!! I'm on gardening mode !!!!

EQ FICO 779; TU FICO 783; EX FAKO 821
In my wallet: USAA AMEX, USAA World MasterCard,Service Credit Union Platinum Visa, Chase MasterCard, Chase Sapphire Preferred, Discover More Card, American Express Gold, American Express Platinum, Chase Continental One Pass


Message 3 of 24
Creditaddict
Legendary Contributor

Re: How much credit is too much credit?

Each time you apply you are lowering your average age of account which can cost you a couple of points but I don't think anything to huge.

I would only be concerned about inq and new accounts if you are within a year of buyin ga home or something very large like that... otherwise I don't think it's an issue.

Message 4 of 24
Anonymous
Not applicable

Re: How much credit is too much credit?

my credit history is still fairly young. So I am going balls out applying for every card I can possibly get so as to solidify my AAoA. Once all 12 or so accounts that I am applying for age to 5+ years, my AAoA will be invincible..

Message 5 of 24
HoahCredit
Regular Contributor

Re: How much credit is too much credit?

I see. A friend of mine tried to get a mortgage but he could.... Citibank told he that he had too many open credit cards. As a result of that, he closed three credit cards and his credit score dropped drastically; therefore, he had to wait for a year or two to re-apply. I just don't want to make the same mistake especially since I want to buy a house in a three years. 

!!!! I'm on gardening mode !!!!

EQ FICO 779; TU FICO 783; EX FAKO 821
In my wallet: USAA AMEX, USAA World MasterCard,Service Credit Union Platinum Visa, Chase MasterCard, Chase Sapphire Preferred, Discover More Card, American Express Gold, American Express Platinum, Chase Continental One Pass


Message 6 of 24
Anonymous
Not applicable

Re: How much credit is too much credit?

You can close credit card accounts without it hurting your score if you do it properly.

 

Which is to say just don't close them while you're carrying a balance on any other accounts so it drops your util. 

Message 7 of 24
bichonmom
Senior Contributor

Re: How much credit is too much credit?

Well, it is possible to have too much unsecured credit, but I've not read anyone posting that here. And some people have really high CL totals, so I doubt you're at that threshold yet.

 

You have really great scores and a nice mix of CCs. I'm curious as to *why* you want a *new* CC. I'd probably concentrate more on getting CLIs with your existing cards. Unless there's a card you really want for its rewards or something. With you scores and CCs, unless you have high util, you would probably be approved.

 

My hunch with your friend is that is wasn't so much *having* the CCs as that they were probably carrying a balance... unless he had an astronomical amount of CCs. Years ago, I was declined credit because I had too much unsecured credit, but it wasn't that I had the CCs, it was that I was carrying balances on the cards.

 

HTH! Smiley Happy

 

EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

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

Message 8 of 24
GregB
Valued Contributor

Re: How much credit is too much credit?

I think the "too much available credit" is mostly a myth. I think some FAKO score analysis promote this.

 

I think the only way somebody runs into this today is when a person barely qualifies for a home purchase, and the lender wants to see them close some accounts to make them more comfortable that the borrower won't get themselves into trouble so quickly. In that rare situation, it would come as a requirement during the loan approval. I can't see how there would be any reason to purposely lower your total CL at this point.

 

FWIW, my total CL a few years ago was $380K and I never ran into any issue buying two different houses.

Message 9 of 24
Walt_K
Senior Contributor

Re: How much credit is too much credit?


@HoahCredit wrote:

I see. A friend of mine tried to get a mortgage but he could.... Citibank told he that he had too many open credit cards. As a result of that, he closed three credit cards and his credit score dropped drastically; therefore, he had to wait for a year or two to re-apply. I just don't want to make the same mistake especially since I want to buy a house in a three years. 



I've heard of some lenders asking for this to happen, but there's no reason to do it prospectively.  It certainly won't hurt your score to leave the cards open.  If a lender tells you at the time of application, that one of the conditions of approval is that you reduce your total available unsecured credit, you can consider it at that time.  No reason at all to close anything now.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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