topic Re: CLI- When is too much... TOO MUCH? in Credit Cards

CLI- When is too much... TOO MUCH?

nenuco — Sun, 07 May 2017 03:12:53 GMT

After reading all this information about prime banks being more strict regarding their AA and how they handle risks factors, I'm slightly worried about having too much credit. I was approved for the new US Bank Altitude Reserve, though it was not an instant approval. I thought I would get a lower credit line that matched my other US Bank card.

I decided to ask for a credit line increase from Citi and PenFed on the same day. Good news: I received the credit limit increase, though it was much more than I ever expected.

Citi increased my two lines by $23,000 and $18,100 respectively.

PenFed increased it by $28,000

When I was finally approved for the Altitude Reserve, I called to inquire about the CL. Low and behold I was surprised with $41,600, one of my highest limits. My utility has always been 2-3%, always pay in full, and this US Bank card is the first account I've applied for in the last six months. This is 110,700 in new credit. I'm just worried about the effect this may have with my other banks. Especially if a computer can't tell the difference between someone desperate for credit and a consumer who is very responsible and appreciates all the great cards they have. I really love Chase and would hate to jeopardize that relationship. I don't MS or do anything shady. I never come close to maxing out any categories or deals. Should I call Citi & PenFed and lower the amount, as they basically tripled my previous credit lines? Or am I overreacting? Thanks!

Re: CLI- When is too much... TOO MUCH?

Aduke1122 — Sun, 07 May 2017 04:46:12 GMT

Wow that's amazing OP , can you add in your scores and what your profile is like so that we can know more about your sitt

Re: CLI- When is too much... TOO MUCH?

nenuco — Sun, 07 May 2017 05:01:55 GMT

Thanks! My CKarma score is was in the high 780's. I now have 17 inquiries in the last 24 months, 17 cards total, AAoA ~ 3 years, oldest account 7 years old. Any advice would be appreciated!

Re: CLI- When is too much... TOO MUCH?

Anonymous — Sun, 07 May 2017 05:58:59 GMT

Too much is in relation to how much you spend versus how much you can afford. Too much credit isn't a concern. Too much debt is.

Cancel that thought with sketchy lenders who want to charge you 24.99% for a car loan (on a $40,000 car) when you have $218,000 in revolving credit as a one percenter.

They want your 24.99% payments without you having the ability to pay in ten different ways.

Say hey to Barclays and Synchrony.

Re: CLI- When is too much... TOO MUCH?

sarge12 — Sun, 07 May 2017 06:45:23 GMT

@nenuco wrote:
After reading all this information about prime banks being more strict regarding their AA and how they handle risks factors, I'm slightly worried about having too much credit. I was approved for the new US Bank Altitude Reserve, though it was not an instant approval. I thought I would get a lower credit line that matched my other US Bank card.

I decided to ask for a credit line increase from Citi and PenFed on the same day. Good news: I received the credit limit increase, though it was much more than I ever expected.

Citi increased my two lines by $23,000 and $18,100 respectively.
PenFed increased it by $28,000

When I was finally approved for the Altitude Reserve, I called to inquire about the CL. Low and behold I was surprised with $41,600, one of my highest limits. My utility has always been 2-3%, always pay in full, and this US Bank card is the first account I've applied for in the last six months. This is 110,700 in new credit. I'm just worried about the effect this may have with my other banks. Especially if a computer can't tell the difference between someone desperate for credit and a consumer who is very responsible and appreciates all the great cards they have. I really love Chase and would hate to jeopardize that relationship. I don't MS or do anything shady. I never come close to maxing out any categories or deals. Should I call Citi & PenFed and lower the amount, as they basically tripled my previous credit lines? Or am I overreacting? Thanks!

OP...what a loaded question...sure you'll recieve a huge variety of responses to "when is too much too much" Some on these boards will react as if you will be struck dead by requesting an unneeded CLI to lower utilization. Others would consider it a sin to even ask that question as noone should even slow down until you have 60 cards and 1 million in credit limits. I guess I would consider myself to be a centrist on the issue. I have 16 cards and about 150k in total credit limits, and I am now hiding in the garden to try and avoid any AA.

Re: CLI- When is too much... TOO MUCH?

nenuco — Sun, 07 May 2017 07:27:44 GMT

Thanks for all the comments and help. Didn't mean the post to be a loaded question... I wanted to see if it would be wise to lower the credit limits to more "reasonable" amounts, given the information regarding the scrutiny that has been going around lately.

I know everyone will have different opinions, though I hope for some type of consensus 😊

Re: CLI- When is too much... TOO MUCH?

sarge12 — Sun, 07 May 2017 07:44:59 GMT

@nenuco wrote:
Thanks for all the comments and help. Didn't mean the post to be a loaded question... I wanted to see if it would be wise to lower the credit limits to more "reasonable" amounts, given the information regarding the scrutiny that has been going around lately.

I know everyone will have different opinions, though I hope for some type of consensus 😊

The problem with a rash of reported AA on social media is only 3 people total being reported by 1000 people looks the same as 3000 people being reported, so it is really hard to tell if this is just a few people which would be normal or if it is actually the creditors tightening their standards or some of both. The greater concern to me is the news reports that indicate a higher percentage of defaults compared to last year, which would make me suspect some issuer actions to slow that trend.

Re: CLI- When is too much... TOO MUCH?

rlx01 — Sun, 07 May 2017 16:46:44 GMT

If they gave you those lines they're comfortable with it and you should do nothing.

Re: CLI- When is too much... TOO MUCH?

gdale6 — Sun, 07 May 2017 16:56:22 GMT

Moving to CCs for better input

Re: CLI- When is too much... TOO MUCH?

Anonymous — Sun, 07 May 2017 18:51:10 GMT

@nenuco wrote:
After reading all this information about prime banks being more strict regarding their AA and how they handle risks factors, I'm slightly worried about having too much credit. I was approved for the new US Bank Altitude Reserve, though it was not an instant approval. I thought I would get a lower credit line that matched my other US Bank card.

I decided to ask for a credit line increase from Citi and PenFed on the same day. Good news: I received the credit limit increase, though it was much more than I ever expected.

Citi increased my two lines by $23,000 and $18,100 respectively.
PenFed increased it by $28,000

When I was finally approved for the Altitude Reserve, I called to inquire about the CL. Low and behold I was surprised with $41,600, one of my highest limits. My utility has always been 2-3%, always pay in full, and this US Bank card is the first account I've applied for in the last six months. This is 110,700 in new credit. I'm just worried about the effect this may have with my other banks. Especially if a computer can't tell the difference between someone desperate for credit and a consumer who is very responsible and appreciates all the great cards they have. I really love Chase and would hate to jeopardize that relationship. I don't MS or do anything shady. I never come close to maxing out any categories or deals. Should I call Citi & PenFed and lower the amount, as they basically tripled my previous credit lines? Or am I overreacting? Thanks!

Is this a real question or a thinly veiled attempt to brag about your limits? LOLOL Congrats on the Altitude card and PenFed CLI.

Re: CLI- When is too much... TOO MUCH?

MrDisco99 — Sun, 07 May 2017 19:16:35 GMT

I kinda figure there's no such thing as too much available credit as long as you're responsible about your spending and paying down your balance.

Re: CLI- When is too much... TOO MUCH?

AverageJoesCredit — Sun, 07 May 2017 19:35:41 GMT

Work with what your given responibly and if you start having issues using those credit limits responsibly , then you might consider if you have too much or to reevaluate where you are with your profile.

Re: CLI- When is too much... TOO MUCH?

nenuco — Sun, 07 May 2017 20:09:38 GMT

Thanks for the help?! Honestly with the recent article from DoC and what I've seen about Chase being more on top of their risk factors, I didn't want to raise any alarms by having so much new credit.

In the past my CLI's have been modest, never more than 50% of the current limit. If I wasn't worried, I would have just posted them without asking for help.

Are banks just concerned about the credit they have afforded you, or also just as keen to see what you've received from other banks? Given that your utility has not gone up, and that nothing else has changed on your report.

I would rather pursue a CLD before the new CL posts to my report. That way it doesn't look like I was given an increase, then a decrease. Sorry if this seems confusing or doesn't make sense. I just want to be safe rather than sorry. Thanks!

Re: CLI- When is too much... TOO MUCH?

sunkissed — Sun, 07 May 2017 20:24:02 GMT

You need to do what works for you. I think that if the limits given make you uncomfortable and far exceed what you need, then you should reduce them to amounts that are more in line with how you plan to use them. Peace of mind is priceless.

Re: CLI- When is too much... TOO MUCH?

nenuco — Sun, 07 May 2017 20:41:36 GMT

@sunkissed wrote:
You need to do what works for you. I think that if the limits given make you uncomfortable and far exceed what you need, then you should reduce them to amounts that are more in line with how you plan to use them. Peace of mind is priceless.

This is so true. Nothing may ever come of this, and I may be blowing things out of proportion. Though if this triggered an AA or a closure of another account, I know I would feel like I should have taken action sooner. Even if this is happening to a minority, the peace of mind that I didn't stay with excessively large limits just to say I have them is worth it.

If these limits were given instantly by the computer, would it cause any stir to ask a customer service rep for a decrease? How does that usually go? Again thanks for all the valuable input and time. I really appreciate it!

Re: CLI- When is too much... TOO MUCH?

red259 — Sun, 07 May 2017 20:50:21 GMT

I don't think its too much. At first I thought those were large limits but then I realized you don't have a lot of cards with these lenders so your limits are are pretty much consolidated into a few lines vs someone like me who has credit spread across several cards with some lenders. If it were me I would not worry about Chase reacting to this unless you are planning on going on an app spree and even then I wouldn't be super concerned since they are only a few trade lines. That being said if you are near your ceiling with citi in terms of credit and you want future citi cards I would reduce some of those citi lines in advance of a new application. There has been talk about the new credit scoring system from Vantage where people may be penalized some for having too much credit, but I think its too early to say how that will all play out in the long run. Personally I'd rather have too much than too little. By way of comparison I just was approved for a BoA card with 18k limit and I'm not going to do anything about it.

Re: CLI- When is too much... TOO MUCH?

sunkissed — Sun, 07 May 2017 21:02:37 GMT

@nenuco wrote:
@sunkissed wrote:
You need to do what works for you. I think that if the limits given make you uncomfortable and far exceed what you need, then you should reduce them to amounts that are more in line with how you plan to use them. Peace of mind is priceless.
This is so true. Nothing may ever come of this, and I may be blowing things out of proportion. Though if this triggered an AA or a closure of another account, I know I would feel like I should have taken action sooner. Even if this is happening to a minority, the peace of mind that I didn't stay with excessively large limits just to say I have them is worth it.

If these limits were given instantly by the computer, would it cause any stir to ask a customer service rep for a decrease? How does that usually go? Again thanks for all the valuable input and time. I really appreciate it!

Reducing your limits is not going to raise any eyebrows with the issuer. You'll be fine.

Re: CLI- When is too much... TOO MUCH?

Chickenpotpie — Sun, 07 May 2017 23:58:02 GMT

Its too much when it makes you uncomfortable. What works for one, may not work for another. Like I could probably go out and get a couple more CC's but I won't because for me it would be too much. I take a very conservative approach and really, have no need to ask for more credit at this time. (I have plenty)

But congrats, if that was what you wanted. If not, well.... you can always ask them to decrease.

Re: CLI- When is too much... TOO MUCH?

Kforce — Mon, 08 May 2017 01:44:39 GMT

I put caps on my cards depending on the cards average monthly spend

Low, Less than 1,000, Cap at $10,000

Med, 1K--2K, Cap at $15,000

High 2K-3K, Cap at $20,000

XHigh 3K-4K Cap at $25,000

These numbers are scientifically calculated from secret formulas

that I was able to gleam from credit bureau experts by using

my mind reading skills.

Re: CLI- When is too much... TOO MUCH?

sarge12 — Mon, 08 May 2017 01:46:22 GMT

@Kforce wrote:
I put caps on my cards depending on the cards average monthly spend
Low, Less than 1,000, Cap at $10,000
Med, 1K--2K, Cap at $15,000
High 2K-4K, Cap at $25,000

These numbers are scientifically calculated from secret formulas
that I was able to gleam from credit bureau experts by using
my mind reading skills.

Wait..what??? Credit Bureau expert computer number crunchers have minds to read??? Who knew?