Question about Total credit allowed per Income

[sobeone1]

Sorry if this topic has already been discused I tried looking it up first. Okay I have an income of 50k. My credit limits on my credit cards are low because new credit. I have around 27k credit limits over 8 credit cards but yesterday Lowes raised my c.l to 25k. so now my total credi limits are 47k. Will this hurt my chances of getting higher credit limits on my other cards or even getting any new cards, even though my usage is under 10%. Another question since my lowes card, walmart and Amazon are all on the same Bank does this prevent me from getting a c.l.i from Walmart. The only reason I asked for 25k from lowes was I didnt think I would get it and they would offer around 8k and that it would lower my total credit utilization. Should I call Lowes and have the lower my limit? Thanks ahead of time for your advice.

[Involver]

No.

[kdm31091]

The answer is not a 100% unilateral no. Any lender can look at your DTI or simply your amount of available credit vs income and decide you have enough credit. This can lead to lack of CLI or new approvals.

I don't think the answer is simply "no", because occasionally, it does happen where someone gets "stuck" because they have "too much credit" for their income.

[Involver]

The answer here is a unilateral no.

No lender is going to limit CLIs or decline new accounts for having total revolving credit lines that are less than your annual income.

Edit - I guess in response to your Walmart question, which I originally glossed over, the answer is maybe, but very likely not.

[scorewatcher7]

I wouldn't say its that black or white, yes or no. 

First of all, do you really need higher limits on your other cards, or since you got approved for 25k, you now want them all to be the same? It's a common problem we all have.

Second, you have a good amount of credit relative to your income. Banks are not likely to float 50k credit on 50k income- especially if your cards are all the same bank. I can't say for certain you'd get denied for a CLI increase on Walmart, but with your recent inquiry and success, they might categorize you as risky if you then ask for more credit. Your util will drop even further at 47k avail credit so banks start looking into whether your trying to stack your credit profile to keep your utilization low.  You should be thrilled with the fact that you got 25k over the 8k you were expecting, and just be happy that the bank thinks you're such a credible borrower.  give it some time, and ask for more credit once you've established a good history at the 47k level.  good job on that increase. 

[gdale6]

At some point your income will limit the amount of credit but the more depth of file you have the more credit can be extended to you, in other words the thicker your file and the older your file the more credit you can receive, I am at over 2x credit to income and am still approved for cards. The 25K limit will assist you in getting higher limits over time with other lenders as higher limits beget higher limits, congrats on getting your 25K Lowes.

[Anonymous]

I'll chime in in the "no" column.  Or at least in the "you have a ways to go before getting to yes" column.

I have stated HH income around $150k and have a total C/L of around $380k.  I have never been denied because of "too much credit."  I have occasionally been delayed for being approved for a card because of having too much existing total credit limit with the issuer in question.  In those cases, it was just a matter of speaking to a CA and reducing the limits on existing cards in order to open the new card.  I've also been queried by a CA as to why I wanted to open a new card when I have so many existing cards that I could use.  I answer truthfully and then the application is approved.

Don't worry, be happy.  

Chris.

[Anonymous]

My CLs exceed my W2 income.