How much is TOO much???

[Slim1Der]

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.

[killer_queen229]

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.

[1GaDawg85]

I believe most places have internal limits 

[twist7d7]

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

[FinStar]

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.

[1GaDawg85]

---

@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 

[Anonymous]

---

@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)

[CelticLady]

---

@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.

[Slim1Der]

---

@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". 

[baller4life]

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.