The right credit to income ratio....

[Anonymous]

How large should your credit line be in relationship to your income?  For instance I make about $60,000 per year and have about $25,000 in credit.  Should I have more or less?  Does this matter? 

[Anonymous]

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@Anonymous wrote:

How large should your credit line be in relationship to your income?  For instance I make about $60,000 per year and have about $25,000 in credit.  Should I have more or less?  Does this matter? 

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2 to 1.

So, if you increase credit line to $120,000 you'll be in a great position.

[Gunnar419]

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@Anonymous wrote:

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@Anonymous wrote:

How large should your credit line be in relationship to your income?  For instance I make about $60,000 per year and have about $25,000 in credit.  Should I have more or less?  Does this matter? 

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2 to 1.

So, if you increase credit line to $120,000 you'll be in a great position.

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Well, that's an optimal ratio if you're Nixon. Or if you're me, for that matter. Mine's also about 2 to 1. But there is NO standard CL to income ratio. It varies all over the place, with 2 to 1 being near, but not at, the high end.

Better questions are things like how much total CL (and CL per card) do you need to cover all your credit spending while still keeping a favorable utilization rate?

[ksantangelo23]

Last year my ratio was 6 to 1, and I was never questioned or denied based on that. There is no magic number.

[heyitsyeh]

I don't think there is a right answer to this. For example my utilization remained <5% whether or not my C-I ratio was 0.5 last year or 1.25 as it is now.

[baller4life]

Whatever makes you comfortable. Everyone needs to decide that for themselves. Keep in mind that it is better to have more credit than you actually need. Because when you need it, 9 times out of 10 you can't get it. So I feel safe with more than twice my income in available credit.

[Anonymous]

my income is 35k 

my CL is a bit over 50k

[kdm31091]

There is no right or wrong answer. Personally I think 2 to 1 is not necessarily right for everyone. I'm not sure how comfortable I'd be with double my income in credit. To me it seems to invite issuers to think you are risky (i.e. "why do you need that much credit compared to your income?")

Whatever you are comfortable with is the right ratio. Don't overthink it. It's not worth it. Don't charge more than you can afford. Pay off your cards. Enjoy whatever rewards you get. Stressing about "right" ratios or "right" balances reporting or any of that is overkill, IMO. Obtain cards which you feel you can and will use. Nothing more nothing less.

[Berk]

I make just over 100K. My total reporting credit card lines are almost 139K. I keep my util at 3%-4% for the most part.

[Anonymous]

I think it depends more on how you utilize it because that determines how much you need available to keep your DTI in check.