Has anyone even been denied for having too much available credit across all lenders? Clearly people get denied for having too much available credit with the particular lender they are applying with and so I am not asking about that. What I am asking is has anyone been denied by a lender not because they had too much available credit with that particular lender but because they were told they had too much credit with other lenders?
Update: The answer to above is yes. Now the question is assuming all else is perfect in a credit report with good utilization how much would be too much in general would be too much available credit for someone with 50k in annual income (x1,x2,x3, etc). Just trying to come to a general guideline as hitting a specific number is not possible.
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If I worked for a bank/CU and saw an app that makes $50k a year and has $200k in credit with $195k of that available... I'd most definitely deny for too much available credit.
Pretty common no?
@TRC_WA wrote:If I worked for a bank/CU and saw an app that makes $50k a year and has $200k in credit with $195k of that available... I'd most definitely deny for too much available credit.
Pretty common no?
It's not just that it's available (presumably your denial would be even quicker if only $1K of the $200K was available!). With an "excessive" total CL, you would either get this or get something about too much debt.
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.
@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.
I'm comfortable with roughly $65k in CL's... which equals my annual income.
$130k/$195k in CL's isn't something I need. To each their own of course...
@TRC_WA wrote:
@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.
I'm comfortable with roughly $65k in CL's... which equals my annual income.
$130k/$195k in CL's isn't something I need. To each their own of course...
Yes, I don't think I would ever reach double my income or need that, but I am just curious where a lender may generally start gettng nervous.