Too much credit card capacity compared to income.

[pkosheta]

I have a lot of credit card capacity, see below. Util is 3-4% max per month.
Just got approved for 7k from citi for hilton reserve and awaiting my limit from us bank for the club carlson card.
Any ideas on how much is too much relative to income? If I keep this up and keep getting auto increases I'll be at double my income in individual limits before I know it...and then unlikely to be able to get new cards. It's a problem I get many people would like to have I spose so not complaining, just curious about experiences or thoughts.

[Creditaddict]

my partner has credit limits that exceed his income x 5 i would say if not more!!

[longtimelurker]

Citi declined a CLI giving the reason that I had too much credit for income.  The ratio was very small, maybe 1.5 to 1, and I think it was probably too much exposure to Citi.  With no change in income or credit score, Capital One and Amex gave me three CLIs and Chase gave me a new card since then, so not a global measure for all issuers! (Though what is).

[jamesdwi]

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@longtimelurker wrote:

Citi declined a CLI giving the reason that I had too much credit for income.  The ratio was very small, maybe 1.5 to 1, and I think it was probably too much exposure to Citi.  With no change in income or credit score, Capital One and Amex gave me three CLIs and Chase gave me a new card since then, so not a global measure for all issuers! (Though what is).

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as with most things credit related, time cures most if not all problems, when you only have one or two years with the company they may not like CL's over your income, but if you have 5+ years with the credit card company and a perfect record they will not weigh your income vs total credit limits as they did when you first started with the company. 

[wiivile]

Depends really on the income as well. If you're a student making less than 30k, then banks will definitely see it as a problem. If you're making 100k+ banks will probably view you as less of a risk, even if the total credit limit is higher than income. Why? Because someone making 30k is more likely to need to utilize all that credit. How much income are we talking about?

[too-much-time]

When it comes to credit to income ratio, I think a lender draws a distinct line for how much credit they can give you and considers less the credit by other lenders.

[gsmothermon]

I'm also considering applying for this card. If I may ask, what income did you put on your app to be approved? My FICO is 702

[grinlikechelsea]

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@gsmothermon wrote:

I'm also considering applying for this card. If I may ask, what income did you put on your app to be approved? My FICO is 702

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Remember that income is not the only factor for approval. They'll look at your entire profile including AAoA, util, INQs, etc. Best of luck if you do apply!

I've never been denied credit for that reason. I'm a student making about $35 K, and my limits are quite high. I used my partner's income as well for the Chase Southwest app (hence the limit being so high vs. my income), but everything else was under my own finances. I think lenders won't get spooked by a high credit to income ratio unless your util is high and you've been aggressively seeking credit.