How much is too much?

[Anonymous]

I was reading another thread and something that was said made me start thinking. Speaking in terms of % of income, how much credit is too much?

I know it is not part of your FICO score, but lenders do look at more than just your number. And of course there will be many factors that affect this, but I'm just thinking in general, on average terms.

Has anyone been declined due to too much credit? Where were you when it happened?

[Gmood1]

SDFCU declined me back in November of last year for having too much available credit. That's when I had around $125,000 in trade lines. I'm more than double that now. So there's really no way of knowing. Each creditor is different. Some will accept you with open arms, while the most conservative deny you.

[Anonymous]

I think more than 65% of your income is too much.

[Themanwhocan]

I have 560% of my income.

However, I don't think i need less credit. I merely need to be paid more.

[Anonymous]

---

@Themanwhocan wrote:

I have 560% of my income.

However, I don't think i need less credit. I merely need to be paid more.

---

Best answer of the week.

Love your perspective, themanwhocan!

[Anonymous]

Need more income- well yeah, I guess that's a given no matter who you are LOL.

---

@Gmood1 wrote:

SDFCU declined me back in November of last year for having too much available credit. That's when I had around $125,000 in trade lines. I'm more than double that now. So there's really no way of knowing. Each creditor is different. Some will accept you with open arms, while the most conservative deny you.

---

But what about income? The $ doesn't mean anything without the %. 125K to you may equal 10K to me or 500k.

---

@Anonymous wrote:
I think more than 65% of your income is too much.

---

Interesting, unusual %. Anything in particular that leads you to that choice?

[Pway]

---

@Anonymous wrote:

I was reading another thread and something that was said made me start thinking. Speaking in terms of % of income, how much credit is too much?

I know it is not part of your FICO score, but lenders do look at more than just your number. And of course there will be many factors that affect this, but I'm just thinking in general, on average terms.

Has anyone been declined due to too much credit? Where were you when it happened?

---

There is no definite answer to this question.  However, it varies from person to person whether they have to much credit or not.  Yes lenders have denied people for having to much availabe credit.  Some credit unions require those who have to much to close accounts before they will approve them for a card.  It has happened here and is talked about much here on the forums.  

I have been denied by Barclay's bank for a credit card, stating I have sufficient amount of credit.  This was the first time I had seen a denial letter that stated that as a reason, but I now see this quite frequently when people app for credit and denied for having enough credit with other lenders.  

[kdm31091]

There's no real answer but I prefer to keep it modest. Having many times your income in limits can definitely lead to denials for excessive exposure. Some banks see it as debt you could run up, and if it's way beyond your income, you wouldn't be able to repay it.

[Anonymous]

---

@Pway wrote:

---

@Anonymous wrote:

I was reading another thread and something that was said made me start thinking. Speaking in terms of % of income, how much credit is too much?

I know it is not part of your FICO score, but lenders do look at more than just your number. And of course there will be many factors that affect this, but I'm just thinking in general, on average terms.

Has anyone been declined due to too much credit? Where were you when it happened?

---

There is no definite answer to this question.  However, it varies from person to person whether they have to much credit or not.  Yes lenders have denied people for having to much availabe credit.  Some credit unions require those who have to much to close accounts before they will approve them for a card.  It has happened here and is talked about much here on the forums.  

I have been denied by Barclay's bank for a credit card, stating I have sufficient amount of credit.  This was the first time I had seen a denial letter that stated that as a reason, but I now see this quite frequently when people app for credit and denied for having enough credit with other lenders.  

---

I wonder if this will come up for me next time I start looking at apps.  Once everything current is reporting, I will have almost 300% available credit compared to my current reported income.

However, I think that the reported util of 1-3% monthly would play a part in a decision as well. Banks want to profit off of your spending, but also don't want to have you rack up debt that you can't pay so I would think it's sort of a balance act of "does this person use cards enough to be profitable for us?" and "is this person a high risk of maxing out our card and not paying us back?".

What do you think?

[Peteyglad]

Is there too much? I have yet to be declined for too much available credit. My credit limits didn't factor in to the mortgage loan last year or my car loan this year.