Why is "too much" credit "bad"?

[longtimelurker]

---

@Anonymous wrote:

---

@Anonymous wrote:

I know that when you apply for a mortgage with many lenders, they will consider the minimum payment for the full credit line on all of your credit accounts (regardless of whether they are reporting a balance or not) as debt outstanding

---

How do they know what the minimum payment would be if the card has a zero balance? What if it's a card that you haven't used yet?

---

On some of my mortgage apps, some of my cards had min payments associated.  It tended to be very small amounts like $25 or $30.  Not sure if it was just those reporting a balance at the time of the pull.   But it struck me at the time as a potential negative of having lots of cards, too many $25 per card can hurt the payments to income ratio!

[Anonymous]

Asgardian - they calculate they minimum payment as if the full credit line has been exhausted. It may not be much, but lots of little assumed minimums can add up.

Imperfectfuture - no disrespect, but I know for a fact it's done at four large regional banks on the east coast.

[Imperfectfuture]

---

@Anonymous wrote:
Asgardian - they calculate they minimum payment as if the full credit line has been exhausted. It may not be much, but lots of little assumed minimums can add up.

Imperfectfuture - no disrespect, but I know for a fact it's done at four large regional banks on the east coast.

---

Not the norm, again, check out the mortgage forums.  Most folks do not use banks, but mortgage brokers, FHA, USDA, Veteran, etc, other special programs.  Have not seen one instance where they count all those payments (went through it myself, am waiting two years for better terms) .  

On topic, barclays has not shut down the arrival yet, so showing as additional 7500, along with the 7500 added to sallie Mae.  Now, I REALLY wish they would report that card as closed.  Making synch nervous, maybe.

[Anonymous]

---

@Imperfectfuture wrote:

---

@Anonymous wrote:
Asgardian - they calculate they minimum payment as if the full credit line has been exhausted. It may not be much, but lots of little assumed minimums can add up.

Imperfectfuture - no disrespect, but I know for a fact it's done at four large regional banks on the east coast.

---

Not the norm, again, check out the mortgage forums.  Most folks do not use banks, but mortgage brokers, FHA, USDA, Veteran, etc, other special programs.  Have not seen one instance where they count all those payments (went through it myself, am waiting two years for better terms) .  

On topic, barclays has not shut down the arrival yet, so showing as additional 7500, along with the 7500 added to sallie Mae.  Now, I REALLY wish they would report that card as closed.  Making synch nervous, maybe.

---

@^^^ I'm defintely looking into this @Imperfectfuture and I hope you are correct. This gives me something to seriously considering when I apply for a mortgage since I have high limits on all my cards.