The right credit to income ratio....

[Anonymous]

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@Revelate wrote:

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@EW800 wrote:
Looks like I am on the low end as far as CL's compared to income. My CL's are about 75% of my income. Taking into consideration what our family went through about three years ago and have been through the rebuilding process, I am more than happy and pleased (and surprised, quite frankly) by this amount.

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Given that your ratio is >3x mine, I must be several standard deviations below the mean hah.  75% pfft .

If I hadn't been trying to keep clean for a mortgage, I would've jumped on a Cap 1 when they were handing out those ludicrous lines several months ago.  Once mortgaged, probably will look at raising my limits some through a couple of CLI requests and a few new apps is my thinking.

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They still are...

[Anonymous]

I'm a little floored reading this.  My revolving credit is about 10% of my income and I don't think I've ever had more than 30% of my income available in revolving credit.

If you add in two cars that I'm paying off, plus my wife's credit cards...  I'm at 42%.  (or 1:2 instead of 2:1)

I can't even fathom a 2:1 ratio for a $60k salary.  That would mean 6 cards with $20K limits.  When I was travelling for work all the time and needed that kind of a limit for hotels and rental cards we had exactly one card with a limit that high.  Pfft.  If I had 6 of them...  I never would have ended up bankrupt.

[dmFICO8]

As long you are still getting approved for new cards, not denied multiple times because of too much credit with other lenders (though how long/thick your profile does play a role), you have the right credit to income.

[Revelate]

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@Anonymous wrote:

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@Revelate wrote:

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@EW800 wrote:
Looks like I am on the low end as far as CL's compared to income. My CL's are about 75% of my income. Taking into consideration what our family went through about three years ago and have been through the rebuilding process, I am more than happy and pleased (and surprised, quite frankly) by this amount.

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Given that your ratio is >3x mine, I must be several standard deviations below the mean hah.  75% pfft .

If I hadn't been trying to keep clean for a mortgage, I would've jumped on a Cap 1 when they were handing out those ludicrous lines several months ago.  Once mortgaged, probably will look at raising my limits some through a couple of CLI requests and a few new apps is my thinking.

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They still are...

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Good to know; I was waiting to do research until house sorted one way or the other, no need for me to get even more fustruated than I already am hehe.

Thanks senor!

[Anonymous]

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@Anonymous wrote:

I'm a little floored reading this.  My revolving credit is about 10% of my income and I don't think I've ever had more than 30% of my income available in revolving credit.

If you add in two cars that I'm paying off, plus my wife's credit cards...  I'm at 42%.  (or 1:2 instead of 2:1)

I can't even fathom a 2:1 ratio for a $60k salary.  That would mean 6 cards with $20K limits.  When I was travelling for work all the time and needed that kind of a limit for hotels and rental cards we had exactly one card with a limit that high.  Pfft.  If I had 6 of them...  I never would have ended up bankrupt.

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20 cards for me. Highest CL is $24,000.

[longtimelurker]

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@dmFICO8 wrote:

As long you are still getting approved for new cards, not denied multiple times because of too much credit with other lenders (though how long/thick your profile does play a role), you have the right credit to income.

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And, as with most things credit, it also depends on your goals.     If your goal is getting bonuses, and your total CL is getting high, it may make sense to ask for CLDs on some of your cards, to maximize the chances of automated approval.   While heresy for some, it makes getting bonuses easier.

[lg8302ch]

I would agree with baller4life's statement..... do as you feel comfortable    I remember end of 2012 I had 8,5K total available credit and this had been like this for many years then I came across this board and went crazy. First some 5K CLs came around and then the first approval with a figure that almost got me dizzy (17K from Citi). I remember how "uncomfortable" that felt to me at that time  but hate to say that you get used to these limits later on The only 2 cards I was limit chasing were Amex (just  for the heck of trying 3x) and Discover because of the 2,5K SL and today I have to tell myself to stop pressing any luv buttons because IMO my ratio is very unhealthy with being 3 x my annual income. The bad thing is that there are still two cards I would like to have but not for the limits but for the perks.  This might show later in the year if not reducing limits was a mistake but I will try and see how it goes. Any lender that  denies my apps at this stage has my full understanding

[Imperfectfuture]

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@longtimelurker wrote:

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@dmFICO8 wrote:

As long you are still getting approved for new cards, not denied multiple times because of too much credit with other lenders (though how long/thick your profile does play a role), you have the right credit to income.

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And, as with most things credit, it also depends on your goals.     If your goal is getting bonuses, and your total CL is getting high, it may make sense to ask for CLDs on some of your cards, to maximize the chances of automated approval.   While heresy for some, it makes getting bonuses easier.

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+1 With my self employment income, and counting business cards, I'm a little over 1:1. Semi retirement income, about 1:1.5. But I am still investing, so I can't use the total limits I have. My Barclays US Airways (hasn't been converted to Aviator yet) was approved for 5k with stated projected partial self employment income. I was floored (and I think Chase was too, since is got Freedom at 2.5k, then raised it to 4k), when the Airways card came in at 10k. Came useful for utilization purposes with balance transfer, but wouldn't have transferred that much with 5k. I want a Sallie Mae, but won't be an instant approval.  I think I need to lower the Airways card, or transfer limits for Sallie Mae.

Future cards with Chase means have to raise income, or cancel some cards.