The right credit to income ratio....

[Anonymous]

---

@Revelate wrote:

I always wonder reading these threads if I'm doing something wrong .

Aggregate CL is 21% of current income.  I had planned at some point to shoot for 50K which on current expenses would allow me to float an absurd amount of time if the proverbial fecal matter ever hits the air circulation device.

May be some wisdom in getting some while the getting is good I guess.  Presumably the seemingly large limits won't last forever if history is any indication.

---

I know what you mean:/ My lines are at around 21% of my income right now. I guess it takes some time to build them. At least that's what I'm hoping lol.

[vanillabean]

I don’t know if credit limits were ever designed to fit your spending pattern. But I do know that a credit card company has yet to decrease any of my limits, probably because my record appears to reflect low risk.

When we moved a few months and had picked up a new mortgage, we were charging like crazy and opened some cards and bank accounts in the process. No one blinked an eye. No one seemed to think we would max out our cards.

[Revelate]

---

@Anonymous wrote:

---

@Revelate wrote:

I always wonder reading these threads if I'm doing something wrong .

Aggregate CL is 21% of current income.  I had planned at some point to shoot for 50K which on current expenses would allow me to float an absurd amount of time if the proverbial fecal matter ever hits the air circulation device.

May be some wisdom in getting some while the getting is good I guess.  Presumably the seemingly large limits won't last forever if history is any indication.

---

I know what you mean:/ My lines are at around 21% of my income right now. I guess it takes some time to build them. At least that's what I'm hoping lol.

---

To be fair I really haven't limit chased either; only card I did that on with my Amex BCP and only took that to 9K before I got denied on a 3X and then quit.  Two subsequent cards (Fidelity Amex / Sallie) both sit right around that limit now.

Noticed a funny though for a different poll: largest CL vs. myFICO forum post count... realized I have more posts than I do dollars in my largest CL, quite possibly much fail somewhere. .

[ways2go]

I have a gross income of about 45k and my total cl is 71k.  I'm still waiting for a ccc go,  "What are we thinking?  He has way too much credit. "  and cld me.  If I told my father,  how much of a credit line I have,  he would think I was crazy.   Pretty much I must be.   I don't need that much,   but it does help in utilization. 

[Anonymous]

---

@Anonymous wrote:

---

@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? 

---

2 to 1.

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

---

Twice?  That's nuts.  But, then again, since I write imaginary numbers as my income in applications, under your system my CL would need to be twice that imaginary number, and that is a number beyond my imagination....

[takeshi74]

---

@Anonymous wrote:

How large should your credit line be in relationship to your income?

---

There have been a couple of recent threads on this and the answer is that there isn't a fixed ratio.  One's credit and income versus a creditor's underwriting criteria determines the limit(s) that one qualifies for.  There are multiple variables at play and even if you fix one variable like income there are still multiple variables involved.

---

@Anonymous wrote:

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? 

---

Does it matter for what, specifically?  One isn't solely dependent on the other.  People making $60K have all sorts of different amounts for total credit.  Limits do factor into scoring but there are also subjective matters such as needs/wants/priorities/finances/budget/etc.

[alpha0meqa]

I think I've screwed up. My Fico score is 751, but I previously made 44k, now making 64k as of 1-2 months ago, but my credit lines across, belks, CSP, Bank Credit Card, and a 1st financial that I've had for 10+ years is more than likely around 30k....whoops :/ 

Should I ask for more credit? I don't even use it so I don't know. Of the 30k I have, I probably use 2k a month at the most and pay it all off....

I'm not sure how my Credit limits are so low, I just never asked for more lol.

[EW800]

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.

[ways2go]

---

@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.

---

 Yeah, I hear you.  I was quite flabbergasted when my cl reached close to my gross income.  Then I was floored when it got into the 60's.  I was like they got to be kidding. you have to know my background. I went bk13 in 1990.  My credit was in the dumpster for a long time.  I didn't know my fico score til about a couple of years ago.  I got car loan by santander about 4 years ago and still didn't know my fico score after I got the loan.  I don't know if they ram roaded me into a high apr or not. Then almost three years ago I got a  capital one platinum with a 300 limit and graduated to 500 and went up to 1100, now at 3300.  The about 2 yeaars ago, a discover card,  with a 2.5k limit.  Started to learn my fico scores with that card.  Then about a year ago ended up with 11 cc.  My scores were around 700 to 725 a year ago.  I bought a house last summer,  which floored me, because I never thought I would be able to.  I bought a few things for the house,  and added a screened porch. That I put on my NFCU CASH REWARDS card,  when the 6400 reported ,  my score definitely took a hit. It dropped 22 points alone from that one. Now my scores range from 649 to 704.  I'm just going to garden for the rest of my life,  unless a card too good comes around or I need a new car.

[Revelate]

---

@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.

---

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.