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Income vs available credit

Valued Contributor

Re: Income vs available credit

my total available credit accross all of my cards is well over 100%. and yes, i did have a problem attemping a cli for my bankamericard in november 2011. i just recently reduced my total available credit by 18.1k in the last week. i hope to have better luck with my bankamericard next time i request a CLI after my accounts report as closed.

Message 11 of 33
Established Contributor

Re: Income vs available credit

As long as you have sufficent positive credit history, most creditors are not too concerned. But at some point the will begin to cut you off.

 

My available credit is almost 500% or 5x my income, and I continue to get CLI's and new cards.

 

I'm a college student who makes about $12,000/year and my total revolving credit limits are currently $58,300.

Discover IT $35K | FNBO Visa $30K | Cash+ Visa Sig $19.5K | Southwest Premier $16K | Priceline $15K | Citi Forward $14.3K | US Bank Plat $14K | Commerce Bank $13K | CSP $13K | CSR $10K | Sallie Mae World MC $10K | Lowe’s Consumer 10K | BoA Cash Rewards 1-2-3 Sig $7.5K | Fidelity Visa $7K | Citi Double Cash $6.5K | WF Cash Back Visa $5.4K | Capital One Cash Rewards $5K | AMEX BCE $3.9K | Freedom $2.5K | Younkers/Comenity $2.4K | Kohl’s 1.5K | Target $1.4K | EX FICO (from AMEX): 768, TU FICO (from Discover): 797, AAoA: 4.4 years
Message 12 of 33
Contributor

Re: Income vs available credit


drsmith wrote:

At what point, if any, do you think credit card companies start to question why you're asking for more credit?

 

For example, I'm currently at about 66% of my total income in available credit. I obviously have no use for so much, but there are still more cards I'd like to apply for. 

 

Has this ever been an issue for any of you? 


It is more of a issue when applying for other types of loans, ULOCs and mortgages. I have seen tons of times lenders of mortgages requiring people to kill cards and / or reduce limits as a requirment for approval.

Equifax Feb 2012 690
TU Feb 2012 720
Message 13 of 33
Valued Contributor

Re: Income vs available credit

My CLs are at 101% of my gross annual income.  No small feat seeing as I have a BK7 on my credit reports.  I'm beginning to worry about getting cut off for CLIs though.

FICO Scores Updated 07/15 EQ08 748 EX08 748 TU08 818
Message 14 of 33
Regular Contributor

Re: Income vs available credit


drsmith wrote:

At what point, if any, do you think credit card companies start to question why you're asking for more credit?

 

For example, I'm currently at about 66% of my total income in available credit. I obviously have no use for so much, but there are still more cards I'd like to apply for. 

 

Has this ever been an issue for any of you? 


Each bank/CCC/CU has its own philosophy/theory/business plan regarding risk management, so there is no point at which "why you're asking for more credit" is fixed.  That depends on the lender.

 

The lower the interest rate is for the card, the more selective the card issuer will be.

Current Score: 850 (11-29-2017 Experian FICO 08)
Message 15 of 33
Mega Contributor

Re: Income vs available credit


scottwagnon wrote:

my total available credit accross all of my cards is well over 100%. and yes, i did have a problem attemping a cli for my bankamericard in november 2011. i just recently reduced my total available credit by 18.1k in the last week. i hope to have better luck with my bankamericard next time i request a CLI after my accounts report as closed.


Maybe it's certain things on the CR they look for when making adecision for CLI and you have alot of credit available.




EQ FICO 548 3/3/16
Message 16 of 33
New Contributor

Re: Income vs available credit

Hey guys, been away for a while but..

 

Technically my Income vs Credit ratio is infinity.  Since I don't actually have any taxable income.  So, you never know..

 

I told the people on the phone straight out that my income comes from gifts from family, and they were okay with that because of never being late.  Although on two of my three cards I have my parents as AUs, but I doubt that matters.

 

My 2 cents.

TU08:: 754 (4/14) EQ: 745 (6/14) 753 (1/13) Ex: 766 (12/11)
Goal: 800! Then Keep it there and keep growing!~
Card(s): HSBC Premier WMC: 5,000 (7/09), Chase Freedom 6,000 (11/11) BCE 3,200 (12/11) Chase Saph: 5,000 (5/12)
Message 17 of 33
Super Contributor

Re: Income vs available credit


andre181 wrote:

As long as you have sufficent positive credit history, most creditors are not too concerned. But at some point the will begin to cut you off.

 

My available credit is almost 500% or 5x my income, and I continue to get CLI's and new cards.

 

I'm a college student who makes about $12,000/year and my total revolving credit limits are currently $58,300.


 

That has been my assumption too.

 




Message 18 of 33
Super Contributor

Re: Income vs available credit


GoingTo800 wrote:

It is more of a issue when applying for other types of loans, ULOCs and mortgages. I have seen tons of times lenders of mortgages requiring people to kill cards and / or reduce limits as a requirment for approval.


I have seen that too. I know some people that were told they had too much available revolving credit and they should close some. Not often but I have heard it.




Message 19 of 33
Frequent Contributor

Re: Income vs available credit

I acknowledge that this is an old thread but I have been curious about this topic as I aim to add a few world/signature cards to my wallet in the future. Can anyone else weigh in with there credit to income ratio.
I wonder how many people with lower incomes (15k-50k) have surpassed the %100 mark and if so by how much...
Amex B.C.E. - $2.5k - Amex Everyday - $5k - N.C.F.C.U.M.C. - $5k - Amex Gold - NPSL/35k P.O.T. - Discover It - $12k - Sam's Club M.C. - $10k -
Walmart M.C. - $7.5k - Citi T.Y.P. - $10k- Chase Freedom - $5k - Chase Marriott - $7.4k - U.S. Bank Cash + - $6k -
W.M. TU-781(Jan/15) Citi EQ-782(Dec/14) EX-782(Oct/14)
Audi, Vide, Tace. . .
Message 20 of 33