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How much credit for 55k income?

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frddlawson
New Contributor

How much credit for 55k income?

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.

Message 1 of 22
21 REPLIES 21
sjt
Senior Contributor

Re: How much credit for 55k income?


@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.

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 2 of 22
frddlawson
New Contributor

Re: How much credit for 55k income?

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

Message 3 of 22
Tran92
Regular Contributor

Re: How much credit for 55k income?

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.
TU 746 (10/13)
GOAL: 750+






Message 4 of 22
frddlawson
New Contributor

Re: How much credit for 55k income?

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?

Message 5 of 22
Smug
Established Contributor

Re: How much credit for 55k income?

52k here, total credit 85K
Experian® 808/Equifax® ?/TransUnion® 810
Baddies Experian® clean/Equifax® 1/TransUnion® Clean
Last CLI 6-13-2013
Total Credit $121,190.00
Goal 780!
Message 6 of 22
toppers555
Established Contributor

Re: How much credit for 55k income?

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



TU 715 No apps to 05/13 cash+ 5/13!!! 738 TU CSP April 13!!!CSP approved May 13!!!


Message 7 of 22
frddlawson
New Contributor

Re: How much credit for 55k income?

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?

Message 8 of 22
navigatethis12
Valued Contributor

Re: How much credit for 55k income?


@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.

Message 9 of 22
HiLine
Blogger

Re: How much credit for 55k income?

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.

Message 10 of 22
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