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Can you have too much avail credit?

Valued Contributor

Re: Can you have too much avail credit?

Banks arent making money if you are not swiping their card.  As far as having too much available credit the more common ones if you pay attention are the ones who are still in school and/or low income.  I actually started a thread about this a few weeks ago asking whos CL exceeds their income and quite of bit of fico members chimed in.


I make 50-60k per year and I would be really really happy if I can have 50% of my income in available credit.  


I believe lenders thoughts of not extending more credit comes into play when they see a report with 20+ store accounts and 10 bank cards (ok so thats alot but we do have members who have too many open cards)


Amex is not for me I simply do not care to have business with them but thats just me.  The cards I have in my sig are what suits my everyday needs.  I bet more than 50% of us have enough available credit at our disposal.  However if a bank comes out with a new card that has better rewards than my current line up then thats what keeps me and the next guy apping for more.


So to answer the OP's question yes most of us have enough or too much credit but as I stated banks arent making money (aside from CC's) if you arent swiping or carrying balances which is why UTIL is an important factor when apping

NFCU plat 5k | NAVCHECK 5k | NFCU cashrewards 15k | BOFA 123 6k |
Chase Freedom 1.5k | Amazon 3K | Walmart 3K | Buckle 300 | AMEX BCE 2.5K | CHASE CSP 12K | CITI sears 6k | Kay 2k

On the prowl for Chase Sapphire Preferred! APPROVED 12K!
scores 7/14 647 622 630 (85%util)
scores 8/14 767 760 758 Boom! finally in the 700 club
Message 21 of 23
Valued Contributor

Re: Can you have too much avail credit?

if i get a cli on any of my cards in the amount of 2000 or more then my available credit will be more than my income

Amex BCE (2500) / Amex SPG (4000) / Amex GoldPR / Merrill+ Visa siggy (5000) / BofA Amex (6000) / Bofa cash rewards (5000) / BofA Privileges Cash Rewards (5000) / Citi Forward (4400) / Citi DP (2000) / Chase Freedom (4000) / Chase CSP (5000) / Chase Hyatt (5000) / Discover IT (1700) / FNBO AMEX (3600) / NFCU cashRewards Visa signature (15000) / NFCU Flagship Visa signature (12500) / NFCU Navcheck (5000) / Nordstrom (500) / MetroCU Visa Elite (5000) / Walmart (4500) / Kays Jewerels (6600) / Kohls (300) / Macys Platinum (2500) / DCU platinum Visa (17500) / Citizens bank cash back (1100) / Bill Me Later (1631) / PayPal Smart connect (2200) / BestBuy store card (2000)
Message 22 of 23
Senior Contributor

Re: Can you have too much avail credit?

Wow. Lots of great answers. My concern isn't in my having too much credit and getting in over my head. It's that a lender may look at total avail credit and annual income, and decline me. Though as someone pointed out, I could always close or CLD a CC if that happens. 


What makes CLI-ing Walmart so tempting is that it's a sp and can help lower overall util. Right now my total CLs are just above annual income, so I guess I think I may be approaching that threshold where I'm declined a CLI because of that and not for other reasons. It sounds like different lenders have different attitudes about that. Anyone know where Amex stands? 

EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Message 23 of 23