Too much available credit (updated)

[Jaylima91]

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@Anonymous wrote:

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@longtimelurker wrote:

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@red259 wrote:

In light of the fact that you can be denied for too much overall credit it begs the question: At what point should you consider reducing credit lines (or at leats stop asking for CLIs) when you have an upcoming app cycle? When your credit line equals your annual income, 2x your annual income, 3x? To be clear I am referring to situations where people have lots of available credit but a decent utilization rating. For the sake of argument lets set income at a nice round number of 50k. 

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I expect it is more subtle than that (but can't be sure!).   Given enough time, I expect I can add say a $5K card every few months, so, over time (esepcially if I can become immortal) get a total as high as I like.    Now it is possible that at some point, when I add the n+1th card, my existing issuers will suddenly say "too much" but it seems unlikely.   I think the rate of gaining new credit also plays into it, which is why app sprees can sometimes cause issuers.

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You "immortal"?  Ha!  I am afraid meandering around grocery stores, in your bathrub, looking for "gift cards," is way less a healthy lifestyle than you think...

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Everyone quiet! King UglyDuckling has called for war! The sword has been drawn!

[Credit-hoarder]

I just stumbled onto this thread this morning. I app-ed for Chase Marriott VS last night and found out I was denied this morning for this VERY reason! (Too much available credit accross all lenders with Chase included) I made a seperate post about it.

[longtimelurker]

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@Anonymous wrote:

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@longtimelurker wrote:

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@red259 wrote:

In light of the fact that you can be denied for too much overall credit it begs the question: At what point should you consider reducing credit lines (or at leats stop asking for CLIs) when you have an upcoming app cycle? When your credit line equals your annual income, 2x your annual income, 3x? To be clear I am referring to situations where people have lots of available credit but a decent utilization rating. For the sake of argument lets set income at a nice round number of 50k. 

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I expect it is more subtle than that (but can't be sure!).   Given enough time, I expect I can add say a $5K card every few months, so, over time (esepcially if I can become immortal) get a total as high as I like.    Now it is possible that at some point, when I add the n+1th card, my existing issuers will suddenly say "too much" but it seems unlikely.   I think the rate of gaining new credit also plays into it, which is why app sprees can sometimes cause issuers.

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You "immortal"?  Ha!  I am afraid meandering around grocery stores, in your bathrub, looking for "gift cards," is way less a healthy lifestyle than you think...

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I've moved on!   No more wandering grocery stores, too much exercise.   I now sit by my computer, in my Hello Kitty bathrobe, eating tacos, and ordering Amex Gift Cards on line.    Don't tell me that's not healthy!    Anyway, since I still haven't died, I think my immortality plan is on track

[Anonymous]

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longtimelurker wrote:

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elPatitoFeo wrote:

You "immortal"?  Ha!  I am afraid meandering around grocery stores, in your bathrub, looking for "gift cards," is way less a healthy lifestyle than you think...

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I've moved on!   No more wandering grocery stores, too much exercise.   I now sit by my computer, in my Hello Kitty bathrobe, eating tacos, and ordering Amex Gift Cards on line.    Don't tell me that's not healthy!    Anyway, since I still haven't died, I think my immortality plan is on track

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I am glad you are still alive, mostly because I hate replying to dead people, specially if they are still MSing, I hope you give it a rest after cremation, is that too much to ask?

p.s.  And don't joke about Hello Kitty, that is sacred, that's the card that attracts all the chicks, the legal ones, of course...

[Anonymous]

EPF. Where have you been?

[Anonymous]

Exactly right on sum of these posts ... dont bash me but I work for a big bank ... cant disclose .... banks get afraid by the potential for you to use that so called available credit once they extend to you some additional debt ... unfortunately I've had to have sum tuff denial conversations regarding loans because they might be askin me for 100k loan but have 100k available credit .... they may can afford to repay my loan with existing debt to income but won't be able to IF they decided to max out their limits tomorrow after I fund their loan .... its the exposure you have whether it's utilized or NOT banks WILL calculate the amounts into your debt to income ratio ... so always keep that in mind

[elim]

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@Anonymous wrote:
Exactly right on sum of these posts ... dont bash me but I work for a big bank ... cant disclose .... banks get afraid by the potential for you to use that so called available credit once they extend to you some additional debt ... unfortunately I've had to have sum tuff denial conversations regarding loans because they might be askin me for 100k loan but have 100k available credit .... they may can afford to repay my loan with existing debt to income but won't be able to IF they decided to max out their limits tomorrow after I fund their loan .... its the exposure you have whether it's utilized or NOT banks WILL calculate the amounts into your debt to income ratio ... so always keep that in mind

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  I know this is a resurrected thread but...  As far as repaying a loan... It's pretty easy to close on the loan and triple my revolving limits within a year. It's also easy to chop my limits before the loan.  Another thing I can't figure out...  What is the difference of having 50-75k across 5 cards or 250-300k across 25 cards if you have a long history of PIF?

I think I will run to your bank, grab a loan and quickly after obtain 200k in revolving limits. What will you do? Reposes my car/house? lol  Pretty sure there is nothing in the contract that states "X $ cap on revolving limits"   Also... Let's say there was a Med emergency that caused the payer to be without an income for 6 months. wouldn't you rather he float those payments in available credit vs defaulting on the loan?  Get healthy and buckle down for 6 months to true up the balance sheet?  I guess you included those words "big bank" though didn't you. lol, it's not impossible to outsmart them.    ;p

[degs138]

Lenders are always nervous. They're like water buffalo at a river and 15k Credit cards are like crocodiles swimming up to them.

[elim]

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@degs138 wrote:
Lenders are always nervous. They're like water buffalo at a river and 15k Credit cards are like crocodiles swimming up to them.

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  lol, skittish. When one flinches the rest rapidly flee from the water whole, but then they run thirsty and one must return... to give us the loan.

[Anonymous]

Google "Bust-Out". This is making more and more creditors fear approving credit to people who have lots of available credit. Experian actually has a risk score for creditors to use as well.