topic Re: How available credit impacts score / approvals in Credit Cards

How available credit impacts score / approvals

lord_kinbote — Wed, 17 Sep 2014 17:39:04 GMT

Currently, I have CL of about 34k spread accross five cards. Maintain 0 balances (pay before statements are cut) except for 1 card that has the highest CL - and keep the utilization below 5%. My question is, does the avail credit hurt my position or strengthen? I can see two perspectives from the lending world; 1. Responsbile or 2. Could easy go into debt, so why extend more credit. So which carries more weight?

Re: How available credit impacts score / approvals

Ghoshida — Wed, 17 Sep 2014 17:40:58 GMT

@akula wrote:
Currently, I have CL of about 34k spread accross five cards. Maintain 0 balances (pay before statements are cut) except for 1 card that has the highest CL - and keep the utilization below 5%. My question is, does the avail credit hurt my position or strengthen? I can see two perspectives from the lending world; 1. Responsbile or 2. Could easy go into debt, so why extend more credit. So which carries more weight?

Each lender has their own norm, and they take your income into consideration.

Re: How available credit impacts score / approvals

lord_kinbote — Wed, 17 Sep 2014 18:03:01 GMT

Currently my avail credit in only 1/4 of my income. How would lenders in regards to credit cards, know my income? I thought this information was not collected by the CRAs?

Re: How available credit impacts score / approvals

Involver — Wed, 17 Sep 2014 18:04:40 GMT

They ask for income on apps...

Re: How available credit impacts score / approvals

Anonymous — Wed, 17 Sep 2014 18:05:03 GMT

@akula wrote:
Currently my avail credit in only 1/4 of my income. How would lenders in regards to credit cards, know my income? I thought this information was not collected by the CRAs?

When you apply, one of the questions is your income.

Re: How available credit impacts score / approvals

lord_kinbote — Wed, 17 Sep 2014 18:22:16 GMT

Ok, understood. I would not mind verification, but I have never been asked for documentation on income that was inputted on an online approval - so I didn't think much weight would be placed on the answer. Obviously, someone could just put a salary higher then their own in order to help the process - and balk if asked.

Re: How available credit impacts score / approvals

s_haliz — Wed, 17 Sep 2014 18:24:40 GMT

@akula wrote:
Currently, I have CL of about 34k spread accross five cards. Maintain 0 balances (pay before statements are cut) except for 1 card that has the highest CL - and keep the utilization below 5%. My question is, does the avail credit hurt my position or strengthen? I can see two perspectives from the lending world; 1. Responsbile or 2. Could easy go into debt, so why extend more credit. So which carries more weight?

Here is my own take on this. Lender also do look as to how long you had managed that credit line. So say if someone has $50K limit credit card that he/she had amanged for 15 years with no issue at all. Lender would be willing to extend him a credit. Even though risk do exist.