topic Re: How much is TOO much??? in Credit Cards

How much is TOO much???

Slim1Der — Mon, 08 Sep 2014 18:57:34 GMT

I see alot of MyFico members with insane amounts of CL's, which is great! Even myself, I've went from around $5k of CL to upwards of $90k (including PLOCS) within a year. My question is at what point would lenders start to say (if I applied for more credit), that I have too much? I've read a few posts of members saying that they got denied for this very reason.

Obv, I'm looking forward to adding more CC's and possibly PLOC's to the arsenal in the future, so I was wondering about this.

Re: How much is TOO much???

killer_queen229 — Mon, 08 Sep 2014 19:05:57 GMT

I know in the past when I asked Chase for a credit increase that when I got the letter in the mail saying why I was denied was because they couldn't intend me more credit than they offered. So I'm at the limit I started with but I don't need anymore once I think about it on most of my cards.

Re: How much is TOO much???

1GaDawg85 — Mon, 08 Sep 2014 19:07:23 GMT

I believe most places have internal limits

Re: How much is TOO much???

twist7d7 — Mon, 08 Sep 2014 19:08:47 GMT

Im curious about this as well. I feel like i am getting close with my income being what it is. but once i get out of school I should be alright

Re: How much is TOO much???

FinStar — Mon, 08 Sep 2014 19:11:50 GMT

It all depends. As mentioned by the above poster, internal limits, relationship/history with the lender, DTI/capacity and other factors. Eventually, when a lender states they feel the CL allocated is sufficient, that's when you'll know. Each institution has their own lending policies, so experiences will vary.

Re: How much is TOO much???

1GaDawg85 — Mon, 08 Sep 2014 19:13:01 GMT

@twist7d7 wrote:
Im curious about this as well. I feel like i am getting close with my income being what it is. but once i get out of school I should be alright

I'm 99% sure that most companies only expect you to use only a small amount of your income to pay CC debt every month. So when they see how much you have across the board, they will deny you if you above that percentage

Re: How much is TOO much???

Anonymous — Mon, 08 Sep 2014 19:25:03 GMT

@1GaDawg85 wrote:
@twist7d7 wrote:
Im curious about this as well. I feel like i am getting close with my income being what it is. but once i get out of school I should be alright
I'm 99% sure that most companies only expect you to use only a small amount of your income to pay CC debt every month. So when they see how much you have across the board, they will deny you if you above that percentage

Well, a lot of people have CLs 2-3x income (or more) so I really don't think this is true. Most organizations are concerned about their own exposure and people run into this first generally, before running into "too much available credit for income". (Now that might be because many people have multiple cards from one or more lenders)

Re: How much is TOO much???

CelticLady — Mon, 08 Sep 2014 19:30:18 GMT

@Slim1Der wrote:
I see alot of MyFico members with insane amounts of CL's, which is great! Even myself, I've went from around $5k of CL to upwards of $90k (including PLOCS) within a year. My question is at what point would lenders start to say (if I applied for more credit), that I have too much? I've read a few posts of members saying that they got denied for this very reason.

Obv, I'm looking forward to adding more CC's and possibly PLOC's to the arsenal in the future, so I was wondering about this.

I have started to run into this problem with Barclay's. When I applied for the Sallie Mae it went to pending. I called a credit analyst the next day and he said he could only approve me for $1500 because of all my available credit across all issuers, not just with them, and my low income ($23k/yr). I wanted to the world version of the card and asked if I could just use $5k from my existing rewards card over to open it and he was happy with that.

I do have preapprovals with Chase for both Slate and CSP so it definitely depends on your relationship with a particular issuer. I've had my Freedom since 2011 and they have given me auto-cli once and the sp cli invite email as well.

I expect that I will hit a wall with most, if not all, issuers soon because of income. I'm trying to be very choosy about anything new I apply for because I anticipate one more small spree before I am shut down until income increases.

Re: How much is TOO much???

Slim1Der — Mon, 08 Sep 2014 19:47:30 GMT

@Anonymous wrote:
@1GaDawg85 wrote:
@twist7d7 wrote:
Im curious about this as well. I feel like i am getting close with my income being what it is. but once i get out of school I should be alright
I'm 99% sure that most companies only expect you to use only a small amount of your income to pay CC debt every month. So when they see how much you have across the board, they will deny you if you above that percentage
Well, a lot of people have CLs 2-3x income (or more) so I really don't think this is true. Most organizations are concerned about their own exposure and people run into this first generally, before running into "too much available credit for income". (Now that might be because many people have multiple cards from one or more lenders)

This is what I'm trying to figure out. I'm sure it's based on DTI and things like that. But if lenders are concerned about their own exposure I get that. But let's say I go for another LOC with a lender that I have no relationship with. What's the chances they say, "oh no, you have much too much available to you already".

Re: How much is TOO much???

baller4life — Mon, 08 Sep 2014 19:49:03 GMT

I don't know that it has alot to do with income. I've seen people with $500k to $1milli total cl and income not even in the ballpark. Must be a combination of factors.

Re: How much is TOO much???

s_haliz — Tue, 09 Sep 2014 03:53:47 GMT

Sky is the limit......:smileyhappy

Joking aside, as long as you have solid payment history, good scores, and mix of other debts (other CC, diff. loans), they will keep issuing cards. We have in this forums members with $250K to $450K limits.

Re: How much is TOO much???

Anonymous — Tue, 09 Sep 2014 04:05:10 GMT

We will see I guess.

I have a medicore income because my great job decides to not give any hours.

I have an interview for a new job this week and if I get it my salary will triple.

Re: How much is TOO much???

Anonymous — Tue, 09 Sep 2014 17:10:12 GMT

I see people with insane credit limits and I always wonder what I'm doing wrong. My highest limit is $12.75k. I wish I had a CL in the $20k-$30k range.

Re: How much is TOO much???

Hockeyplayrr — Tue, 09 Sep 2014 17:18:32 GMT

I am at 58k in credit. Which more than 20k over my income.. but it doesn't seem to be hindering any approvals. Just yielding smaller initial limits.

Re: How much is TOO much???

JustinS — Tue, 09 Sep 2014 17:55:31 GMT

@Hockeyplayrr wrote:
I am at 58k in credit. Which more than 20k over my income.. but it doesn't seem to be hindering any approvals. Just yielding smaller initial limits.

As of just recently I have seen the same. Smaller limit approvals - not toy card limits just smaller. Granted it's as simple as a phone call to resolve typically depending on the lender. Some are pickier aka Citi Bank while others aren't as much Synch Bank (formerly GECRB). It's just a YMMV type deal I guess. Having all over 700 across the board helps coupled with a thick enough file of all on time payment history for the last few years (not 1 late anywhere in my file).

Re: How much is TOO much???

Anonymous — Tue, 09 Sep 2014 18:29:36 GMT

jetlitheone wrote:
We will see I guess.

I have a medicore income because my great job decides to not give any hours.

I have an interview for a new job this week and if I get it my salary will triple.

Good luck with the interview!!

Re: How much is TOO much???

heyarrnold — Tue, 09 Sep 2014 18:33:45 GMT

I am at 80K+ in available credit with my 5 CC's. I'll keep asking for more until they say no haha. I know that I'll never use that amount of credit, ever, but it's just a feeling of accomplishment haha.