topic Re: How much credit for 55k income? in Credit Cards

How much credit for 55k income?

frddlawson — Thu, 27 Dec 2012 00:17:37 GMT

Hi Fico Community, I have a question. How much available credit is appropiate for a income of 55k? I have so far 6 creditcards and 1 charge card totaling $14,200. I am aiming for more this year but not too much to were I get into trouble or damage my credit. So will someone give me some advise please.

Re: How much credit for 55k income?

sjt — Thu, 27 Dec 2012 00:37:30 GMT

@frddlawson wrote:
Hi Fico Community, I have a question. How much available credit is appropiate for a income of 55k? I have so far 6 creditcards and 1 charge card totaling $14,200. I am aiming for more this year but not too much to were I get into trouble or damage my credit. So will someone give me some advise please.

You will not be damaging your credit by getting more credit. However having alot of available credit can give a red flag to future creditors.

Re: How much credit for 55k income?

frddlawson — Thu, 27 Dec 2012 00:49:49 GMT

Ok, so what is considered a lot of available credit? Is it a certain percentage? Or certain amount?

Re: How much credit for 55k income?

Tran92 — Thu, 27 Dec 2012 00:55:10 GMT

It depends how you actually handle your credit and if your job is stable. I say three months worth of your income would be a safe credit limit. If you are going for more, I wouldn't go any higher than half your annual income.

Re: How much credit for 55k income?

frddlawson — Thu, 27 Dec 2012 01:04:23 GMT

Well, Ive been on my job for 12yrs now and my income is 55k so I guess that put me at 27.5K tops for available credit. But Ive read threads with people on this forum with upper 5 and 6 figure available credit and there income is less than mine. Is that the norm? Or is that considered RISKY?

Re: How much credit for 55k income?

Smug — Thu, 27 Dec 2012 01:10:39 GMT

52k here, total credit 85K

Re: How much credit for 55k income?

toppers555 — Thu, 27 Dec 2012 01:14:05 GMT

their really is no "magic number" as you are looking for. It really depends on your lifestyle ,and how well you handle your credit.

Re: How much credit for 55k income?

frddlawson — Thu, 27 Dec 2012 01:42:48 GMT

So if there isnt a magic number, I can have a infinite number of creditcards with a infinite number of available credit. And everything should be fine. But a birdie wants told me to only apply and except the credit that I NEED and not necessarilly WANT. So I guess only I have the answer to my question. I basically have to be the judge on whats exceptable and whats not. Some maybe able to handle 150k in credit while others can only handle 15k. Its just a matter of choice. RIGHT?

Re: How much credit for 55k income?

navigatethis12 — Thu, 27 Dec 2012 01:54:04 GMT

@frddlawson wrote:
So if there isnt a magic number, I can have a infinite number of creditcards with a infinite number of available credit. And everything should be fine. But a birdie wants told me to only apply and except the credit that I NEED and not necessarilly WANT. So I guess only I have the answer to my question. I basically have to be the judge on whats exceptable and whats not. Some maybe able to handle 150k in credit while others can only handle 15k. Its just a matter of choice. RIGHT?

Very bad advice. If you need credit, then your other cards must be maxed out, and no one will approve you when that is the case. Having a lot of credit will never hurt your credit. Some lenders may not grant any more since they may feel you have sufficient credit for your income, but I have not gotten that yet. I have 50000 income and right now have 59000 reporting and it will go up when a few more cards/increases report. I know people who say that a 5000 limit is too tempting so they have it reduced. I never have temptation to run up cards or anything, so for me there is never too much credit.

Re: How much credit for 55k income?

HiLine — Thu, 27 Dec 2012 01:56:16 GMT

Unless you need more credit, don't try to get more. Even if you need more credit, it's better in a long run to focus on raising the credit limits on your current cards than applying for new cards. Some time in the future you may find yourself looking for credit or for interest rate deals; having excessive credit at that point will prevent you from accomplishing your goals. On top of that, having too many credit cards makes management rather inconvenient for most; you don't want to remember to pay off the balance on 7 cards per month or to charge something on each of your 20 cards from time to time to keep the accounts open. I think having 5 quality cards with total credit limit in the 30k-50k range is sufficient.

Re: How much credit for 55k income?

kevinjjc — Thu, 27 Dec 2012 02:09:29 GMT

45k income

181,050 total credit card limits

+ 40,000 total LOC limits

--------------------------------------------------

= 221,050 total revolving credit limits

Re: How much credit for 55k income?

frddlawson — Thu, 27 Dec 2012 02:46:38 GMT

GOOD POINT HILINE!!! Having too many cards and too much credit can sometimes do more harm than good. Especially if you are trying to manage 25+ cards. But once again, you have to know whats your stopping point. I believe for myself I shouldnt have any more than 10 prime cards max. If I manage them right, they should be able to take care of me.

Re: How much credit for 55k income?

tennisfan78 — Thu, 27 Dec 2012 03:04:32 GMT

@kevinjjc wrote:
45k income

181,050 total credit card limits
+ 40,000 total LOC limits
--------------------------------------------------
= 221,050 total revolving credit limits

Wow, are you serious? Thats amazing.

when you have sometime, I would love to see a list of all the credit cards and the limits on each one.

Also, the $40,000 LOC, is it the reserve line credit with your bank?

Re: How much credit for 55k income?

Anonymous — Thu, 27 Dec 2012 03:17:02 GMT

@kevinjjc wrote:
45k income

181,050 total credit card limits
+ 40,000 total LOC limits
--------------------------------------------------
= 221,050 total revolving credit limits

I assume (since you joined here in 2009!) that you have a fairly long credit history and these limits were built up over time, right?

The major problem with "too much" credit is that one day a mortgage lendor (or maybe auto loan) that you really want will decline you for too much open credit. (Getting declined for a new cool credit card is much more minor). The best rates tend to come from the most conservative lenders and they MIGHT say: "I see you've been very good with credit over the last several years Kevinjjc, but how do I know that as soon as I give you my mortgage, you won't go and run up 221K of debt with no way to repay?" Good credit history mitigates this, but not against the most risk adverse.

Unfortunately for the OP, no fast and hard rules to tell! Some lendors might object to 30K in outstanding limits with a 55K income (again, if you ran up all that debt, depending on the interest rate, you probably wouldn't have enough to meet the DTI ratio for the mortgage), others may not. You want "enough" for your real needs, then a bit more to push your score up to the top tier for the best rates. But what that figure is, no idea.

Re: How much credit for 55k income?

kevinjjc — Thu, 27 Dec 2012 04:29:35 GMT

@tennisfan78 wrote:
@kevinjjc wrote:
45k income

181,050 total credit card limits
+ 40,000 total LOC limits
--------------------------------------------------
= 221,050 total revolving credit limits

Wow, are you serious? Thats amazing.

when you have sometime, I would love to see a list of all the credit cards and the limits on each one.

Also, the $40,000 LOC, is it the reserve line credit with your bank?

CC/LOC LIMIT
American Express Blue Cash Everyday $17,300
Bank of America Platinum Plus Visa $12,500
Chase Freedom Visa Signature $18,000
Discover More Card $15,000
JCPenney/GECRB $5,000
Walmart Discover/GECRB $10,000
Navy Federal nRewards MasterCard $25,000
PenFed Visa Gold Card $35,000
PenFed Platinum Cash Rewards Card $15,000
Staples/Citi $3,250
USAA Rewards World MasterCard $10,000
US Bank Cash+ Visa Signature $15,000
Navy Federal LOC $15,000
PenFed LOC $25,000

Re: How much credit for 55k income?

kevinjjc — Thu, 27 Dec 2012 04:23:17 GMT

@Anonymous wrote:
@kevinjjc wrote:
45k income

181,050 total credit card limits
+ 40,000 total LOC limits
--------------------------------------------------
= 221,050 total revolving credit limits
I assume (since you joined here in 2009!) that you have a fairly long credit history and these limits were built up over time, right?

The major problem with "too much" credit is that one day a mortgage lendor (or maybe auto loan) that you really want will decline you for too much open credit. (Getting declined for a new cool credit card is much more minor). The best rates tend to come from the most conservative lenders and they MIGHT say: "I see you've been very good with credit over the last several years Kevinjjc, but how do I know that as soon as I give you my mortgage, you won't go and run up 221K of debt with no way to repay?" Good credit history mitigates this, but not against the most risk adverse.

Unfortunately for the OP, no fast and hard rules to tell! Some lendors might object to 30K in outstanding limits with a 55K income (again, if you ran up all that debt, depending on the interest rate, you probably wouldn't have enough to meet the DTI ratio for the mortgage), others may not. You want "enough" for your real needs, then a bit more to push your score up to the top tier for the best rates. But what that figure is, no idea.

Oldest Account Age: 13.4
Average Account Age: 6.8

Re: How much credit for 55k income?

tennisfan78 — Thu, 27 Dec 2012 05:03:23 GMT

@kevinjjc wrote:
@tennisfan78 wrote:
@kevinjjc wrote:
45k income

181,050 total credit card limits
+ 40,000 total LOC limits
--------------------------------------------------
= 221,050 total revolving credit limits

Wow, are you serious? Thats amazing.

when you have sometime, I would love to see a list of all the credit cards and the limits on each one.

Also, the $40,000 LOC, is it the reserve line credit with your bank?

CC/LOC LIMIT
American Express Blue Cash Everyday $17,300
Bank of America Platinum Plus Visa $12,500
Chase Freedom Visa Signature $18,000
Discover More Card $15,000
JCPenney/GECRB $5,000
Walmart Discover/GECRB $10,000
Navy Federal nRewards MasterCard $25,000
PenFed Visa Gold Card $35,000
PenFed Platinum Cash Rewards Card $15,000
Staples/Citi $3,250
USAA Rewards World MasterCard $10,000
US Bank Cash+ Visa Signature $15,000
Navy Federal LOC $15,000
PenFed LOC $25,000

Dude, that is incredible. Thanks for the listing.

How do you keep these accounts active? Do you take turns on which cards to use each month?

Also, can we know your Credit Score? Also, how does the LOCs impact your score (was discussing about this in the USBank PLOC thread). Do they have same impact as credit cards.

Ps. I am still in awe and shock

Re: How much credit for 55k income?

kevinjjc — Thu, 27 Dec 2012 05:49:34 GMT

@tennisfan78 wrote:
@kevinjjc wrote:
@tennisfan78 wrote:
@kevinjjc wrote:
45k income

181,050 total credit card limits
+ 40,000 total LOC limits
--------------------------------------------------
= 221,050 total revolving credit limits

Wow, are you serious? Thats amazing.

when you have sometime, I would love to see a list of all the credit cards and the limits on each one.

Also, the $40,000 LOC, is it the reserve line credit with your bank?

CC/LOC LIMIT
American Express Blue Cash Everyday $17,300
Bank of America Platinum Plus Visa $12,500
Chase Freedom Visa Signature $18,000
Discover More Card $15,000
JCPenney/GECRB $5,000
Walmart Discover/GECRB $10,000
Navy Federal nRewards MasterCard $25,000
PenFed Visa Gold Card $35,000
PenFed Platinum Cash Rewards Card $15,000
Staples/Citi $3,250
USAA Rewards World MasterCard $10,000
US Bank Cash+ Visa Signature $15,000
Navy Federal LOC $15,000
PenFed LOC $25,000

Dude, that is incredible. Thanks for the listing.

How do you keep these accounts active? Do you take turns on which cards to use each month?

Also, can we know your Credit Score? Also, how does the LOCs impact your score (was discussing about this in the USBank PLOC thread). Do they have same impact as credit cards.

Ps. I am still in awe and shock

I just use whichever card gives me the most rewards for that particular purchase, and rotate the usage on the other cards.

My Walmart TU08 FICO score is currently 790. Credit Sesame score is 833 (EX FACO).

Re: How much credit for 55k income?

tennisfan78 — Thu, 27 Dec 2012 05:48:17 GMT

Nice. Thanks Kevinjjc!

Re: How much credit for 55k income?

bichonmom — Thu, 27 Dec 2012 06:04:13 GMT

@kevinjjc wrote:

CC/LOC LIMIT
American Express Blue Cash Everyday $17,300
Bank of America Platinum Plus Visa $12,500
Chase Freedom Visa Signature $18,000
Discover More Card $15,000
JCPenney/GECRB $5,000
Walmart Discover/GECRB $10,000
Navy Federal nRewards MasterCard $25,000
PenFed Visa Gold Card $35,000
PenFed Platinum Cash Rewards Card $15,000
Staples/Citi $3,250
USAA Rewards World MasterCard $10,000
US Bank Cash+ Visa Signature $15,000
Navy Federal LOC $15,000
PenFed LOC $25,000

Impressive lineup. You have some really nice cards with healthy limits!

I have 11 cards totalling around $70k, which is slightly above my annual income. I have stopped using several of the cards because I'm just terrified that I'll accidently forget a due date, or stmt date, if I want to PIF before the stmt cuts, and I'll end up w/a late payment. I've seen people post here about their FICO diving from one 30-day late and I've read about interest rates going through the roof on a CC from a payment just a day late (not to mention other AA). I guess that might depend on the CC. Still, I decided to limit my usage to just a few cards to be on the safe side and prevent overwhelm! As much as I admire your portfolio, I wonder how you keep on top of all of them!