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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.
@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.
Ok, so what is considered a lot of available credit? Is it a certain percentage? Or certain amount?
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?
their really is no "magic number" as you are looking for. It really depends on your lifestyle ,and how well you handle your credit.
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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?
@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.
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.