topic Re: Total Credit Limit vs Income in Credit Cards

Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 02:23:53 GMT

I was just curious as to what other peoples maximum exposure is vs their income. If you don't want to give your income just a percentage perhaps.

I'm poor so my income is about 32K per year and $21K total credit limit.

Re: Total Credit Limit vs Income

Viva-LV — Sun, 11 Sep 2016 02:52:31 GMT

Welcome with your first post! I'm currently 200% cl to total income (just mine, not joint). I'm in the garden till early 2017, then will try to get to my goal of 250%. Keep your payment history spotless, your ut low, and your cl's will grow. Good luck!

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 03:21:48 GMT

I'm 200% as well, with 140% or so with store cards. Still trimming fat.

Re: Total Credit Limit vs Income

Themanwhocan — Sun, 11 Sep 2016 04:14:39 GMT

542% after closing a $21k+ card

Re: Total Credit Limit vs Income

TruBlu — Sun, 11 Sep 2016 05:01:53 GMT

Lol! I remember being flabbergasted upon first joining this forum and discovering credit lines exceeding income by almost 50%. Was so naive about credit back then.
To answer your question I'm only at 80% but there are folks on this forum who've built pretty impressive credit portfolios amounting the several times their income.

Re: Total Credit Limit vs Income

awp317 — Sun, 11 Sep 2016 18:31:22 GMT

IM at just over 50% of my annual income not including company credit. I think there comes a point where banks look and say "i dont care how much you have or make you will never need this much credit for one purchase that you couldn't write a check for or wire it".

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 05:36:21 GMT

@Themanwhocan wrote:
542% after closing a $21k+ card

You are the king. And its all from the last 3-3.5 yrs. And your charts and contributions and scores. You must be doing something right.

What is on the horizon for you? Obviously you closed a card. Making room for another future prospect? :-D

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 05:37:09 GMT

I'm at %130 right now. I finally got over the itch to app and seek CLI's for now. So, by the time Feb rolls around, I should have no problem upping that percentage quickly.

Re: Total Credit Limit vs Income

Enjay — Sun, 11 Sep 2016 06:02:56 GMT

I'm at almost exactly 100% by design and plan to stay here. If I open something new I'll close something I already have.

I guess I'm a minimalist by nature!

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 06:56:10 GMT

I'm at about 45% of income and think it's more credit then I'll ever need.

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 07:15:56 GMT

@Anonymous wrote:
I was just curious as to what other peoples maximum exposure is vs their income. If you don't want to give your income just a percentage perhaps.
I'm poor so my income is about 32K per year and $21K total credit limit.

Welcome....

My answer will be non-conventional, as am I (you'll get to see that )

IMO the phrase 'maximum exposure' is a misnomer in the way it's proposed here IF we are to be masters of our own fate.

That is the CL given by the vendor is only 'exposure' if one allows it to be....if we treated our accounts properly our 'max exposure' would be and should a number MUCH LOWER than the CL 'given' by the CCC

It's our goal 'supposedly' to push up the CL, more so to manipulate the 'range' between what we have set as our personally disciplined financial exposure limit vs 'whatever' our CL may be......

If we act in that finacially, disciplined manner the question is a moot one....meaning that a person who KNOWS that their income is 30-40k...should 'see' 100-150k in total CLs as anymore than a way for his/her debt load to comfortably fit within his/her credit profile w/o killing their credit score.

Many ppl don't grow their CLs saying 'I'll never USE that much' ...the truth is OF COURSE you shouldn't USE that much but the way the system scores you want that nuber to be WAY above what you ever would ....if not the moment you carry a balance the debt load could damage your risk rating ie your credit score.

Bottom line 30k annual income has nothing to do with:

10k debt / 25k cl = 40% utilization is WORSE than the same

10k debt / 75cl = 13% utilization

So, the CL IMO shouldn't be looked at as a max exposure....your max exposure should be a number your lifestyle and financial budgeting create for you...and you build your CLs most higher so that whatever number you decide will still keep your risk rating down!

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 08:04:09 GMT

110% currently, will probably grow to about 130% through CLIs over the course of the next year but that's about it. I have no intentions of opening any new accounts or growing my total CL any further beyond that.

Re: Total Credit Limit vs Income

Gmood1 — Sun, 11 Sep 2016 12:30:15 GMT

It took me 16 months to go from 4% to 510%. I would be lying if I said I was done. There are still a few future CLI's with my name on them. Gemini101 makes a good point! And states exactly the way I look at it.

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 12:56:06 GMT

@Themanwhocan wrote:
542% after closing a $21k+ card

Wow!!! Now was that by design or did this happen over time?

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 12:57:34 GMT

I'm currently at 80% of my income but I would like to be at 100% by the end of the year.

Re: Total Credit Limit vs Income

Appleman — Sun, 11 Sep 2016 13:08:26 GMT

2.2X income (220%) but utilization is now 1-2%. And most of that is BTs so no to low interest.

In 2017 the herd will be thinned out. Low limits and/or high APRs are the targets.

Re: Total Credit Limit vs Income

hardworkrebuilding — Sun, 11 Sep 2016 13:32:41 GMT

Currently, I'm right around 100% (hard to say exactly as income fluctuates some, usually stated on the low end) which fits my debt load needs. I really don't need to much, if any, higher. Ideally, I would like to have 200K total CL across 4 cards.

Re: Total Credit Limit vs Income

Themanwhocan — Sun, 11 Sep 2016 14:33:01 GMT

@Anonymous wrote:
@Themanwhocan wrote:
542% after closing a $21k+ card
Wow!!! Now was that by design or did this happen over time?

I'm primarily interested in cash back credit cards, and now that my credit is fairly strong I also go for sign up bonuses.

Large credit limits and lower APRs were always lower on the priority list. I don't apply for a card merely to get a large limit. However, i do always pay in full, I do watch the details like how many recent inquiries I have on each credit bureau, I watch my FICO scores and try to apply when the score is strong, I pay attention to which creditors allow CLI requests via a SP, and I use HP CLI requests strategically, etc. In other words, I do ask for more credit limits and lower APR even though I don't have a pressing need for them right now.

In addition to closing a $21k card, I closed a $20k card but that credit limit was combined with another card so I didnt lose any credit limit. I have 2 cards that will be closed within the next 6 months as well, since they were mainly acquired for sign up bonuses. That also won't change my total credit limit, as one is a charge card and the other I will combine credit limits with another card.

I guess some of this is just curiosity. Just how hard is it to get a $50k card from FNBO? I dunno, but after combining a 21 month old card with a 16 month old card, I have a $36,200 card already. Someone might be interested in my experience there, especially since my income isn't all that great ($62k). Do you know why you cannot pay off a BBVA credit card using a NASA FCU checking or savings account? I do, because I have experience with BBVA's account number restrictions...

Its not all unicorns and rainbows though. I wouldn't be surprised if my 4 Chase cards were closed due to lack of use And I can only do this because I don't need any car loans or mortgage in the immediate future, plus I have an emergency fund that can cover 2 years worth of expenses. But mainly because I am honest with myself, and I know that having large credit limits will not result in a crazy spending spree.

Re: Total Credit Limit vs Income

coldnmn — Sun, 11 Sep 2016 15:04:12 GMT

253% of income.

Re: Total Credit Limit vs Income

Anonymous — Sun, 11 Sep 2016 15:44:04 GMT

About 20%.