Reply
Frequent Contributor
pdog661
Posts: 377
Registered: ‎03-31-2012

Too Much Open Credit?

Is it possible to have too much open credit?  I have a utilization rate of 12%, and working to pay to 0 in the coming weeks, and I have a open credit line combined of 35+K.

 

I was thinking of making a few CLI limit increase request, 10-15K, but am not sure if the new open cl would affect my fico.

 

So in short...... Can you have too much open credit?

Established Contributor
flowfaster
Posts: 787
Registered: ‎08-30-2011

Re: Too Much Open Credit?

[ Edited ]

Yes and no. It depends on your income.  If you make 15K a year then yes 35K might be too much and you'll be denied from future creditors.  If you make 150K a year then your good to go for CLI.

 

FICO pretty much ignores the size of your CL.  You could have a $500 limit card with an 800+ FICO.

Amex BCP/BC/Zync - Amex Business GR - Barclays NFL Visa Sig 49ers/Arrival - BoA BBR - Cap 1 Quicksilver - Citi Forward/Preferred - Chase Amazon/Freedom/Ink Plus - Discover IT - Fidelity Amex - GECRB Amazon/Walmart - PenFed PRV - Target - USAA Amex - US Bank CASH+/Club Carlson
Mega Contributor
Creditaddict
Posts: 18,840
Registered: ‎10-23-2007

Re: Too Much Open Credit?


flowfaster wrote:

Yes and no. It depends on your income.  If you make 15K a year then yes 35K might be too much and you'll be denied from future creditors.  If you make 150K a year then your good to go for CLI.

 

FICO pretty much ignores the size of your CL.  You could have a $500 limit card with an 800+ FICO.


I would add it's more to the bank... Im not sure that is full proof but some banks seem to do approvals or increases based on score or matching other higher limits so you move business to them, some for CLI just go by account history... then you have Wells, Amex "sometimes", ummm forget... but i have seen at least with the wells unsecured line of credit up to $25k - My partner was pre-approved and didn't really want or think he should ask for more than 5 or so if he was going to apply, I was like no, you do ALL your banking there, just open it and let it sit, you never know later... so i made him ask for 25k... they came back and said based on income (direct deposit) they could do $16,200.

I say just keep doing what you want to do for new accounts and CLI as long as you are not looking for major purchase soon where the INQ could hurt you until someone tells you idfferently (meaning the bank denies and only reason is you are at max with them based on income)

Fico Scores: EQ 639 Navy, TU 665 GE, EX 677 Prosper (07-09-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Buckle $250
Over 30 Cards in between :smileytongue:
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Too Much Open Credit?


Creditaddict wrote:

flowfaster wrote:

Yes and no. It depends on your income.  If you make 15K a year then yes 35K might be too much and you'll be denied from future creditors.  If you make 150K a year then your good to go for CLI.

 

FICO pretty much ignores the size of your CL.  You could have a $500 limit card with an 800+ FICO.


I would add it's more to the bank... Im not sure that is full proof but some banks seem to do approvals or increases based on score or matching other higher limits so you move business to them, some for CLI just go by account history... then you have Wells, Amex "sometimes", ummm forget... but i have seen at least with the wells unsecured line of credit up to $25k - My partner was pre-approved and didn't really want or think he should ask for more than 5 or so if he was going to apply, I was like no, you do ALL your banking there, just open it and let it sit, you never know later... so i made him ask for 25k... they came back and said based on income (direct deposit) they could do $16,200.

I say just keep doing what you want to do for new accounts and CLI as long as you are not looking for major purchase soon where the INQ could hurt you until someone tells you idfferently (meaning the bank denies and only reason is you are at max with them based on income)


Solid advice.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Senior Contributor
Open123
Posts: 3,980
Registered: ‎02-23-2011

Re: Too Much Open Credit?

Sometimes too much open credit will keep you from getting approved during multiple apps, such as applying for 3 cards with sign up bonuses.

 

 

Valued Contributor
kevinjjc
Posts: 1,301
Registered: ‎01-14-2009

Re: Too Much Open Credit?

I only make 45k a year, and have about 180k in total revolving credit limits. No issues yet from creditors.
New Contributor
OwNt
Posts: 62
Registered: ‎10-07-2007

Re: Too Much Open Credit?

I think creditors care much more about your DTI ratio than they do your total credit limits.

 

I also have never had issues with large amounts of credit available.

~~Credit Cards~~
Alliant Platinum Rewards Visa, AmEx BCP, BofA Power Rewards, Bank of the West Platinum, Barclay Rewards World MC, Chase Freedom/Chase Sapphire Preferred, Citi Thank You Preferred/Citi Dividend Select, Discover IT, FNBOmaha, Paypal MC, US Bank Cash+/US Bank Perks+.

Total: $300,000+ in lines.
Valued Contributor
Crashem
Posts: 3,098
Registered: ‎01-26-2012

Re: Too Much Open Credit?

Go much credit should rarely be a problem.  Too much reported debt (remember even PIF you can report a balance) is the problem.  Too much recent credit can be a problem as lenders are nervous you can't handle the new credit.

 

So, OP yes your util will go down with new available credit.  CLIs won't hurt you too much as worse case you are just taking inquiries.  New cards will probably overall hurt your credit initially  Your util is pretty low and not much to be gained from score there.  And you will take hits on credit for new account, new inquiry, lower AAoA.  However, new cards might make sense to build out your credit for longterm or for BT if it is going to take you a while to pay off.  Or for the signup bonuses. 

               LIMITS IN CARD DESCRIPTIONS

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+