Simple question

[Shock]

Can overall credit limits on file (mines is $54,500) exceed total income? Mines is 60k so I'm wondering if that's why I got a recent denial..

[B335is]

Yes, in some cases total credit limits can exceed 2x, 3x, etc.. annual income.

Even with a good score, you can be denied for too much new credit, util on one card too high for example.  I've been denied for "adequate available credit"

[ezdoesit]

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@Shock wrote:

Can overall credit limits on file (mines is $54,500) exceed total income? Mines is 60k so I'm wondering if that's why I got a recent denial..

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Did the letter give reason for denial. 

[nachoslibres]

Each bank and/or credit card can give you different limits based on different figures.  I'm pretty sure they don't go calculating how much your total limits are with other cards and then comparing it to the annual income figure you supplied, unless all those credit clines are with the same bank (Chase has been rumored to only give out a certain amount of credit all together between all their TLs before denying) and that may just be a possibility.

There are some people who have high incomes who get approved for really low CLs while there are others who have lower incomes who get approved for my higher CLs.  Each bank and card have their own algorithms that consider many different factors when approving cards and the CLs that are given with them, and income is just one of many variables.

[Kenny]

The only lender I know that I'm near my internal threshold is Chase. Every other lender is still willing to extend credit to me whenever I ask and my available CL is probably 3x-4x my income. I know that eventually there may be a ceiling, but right now I'm not near it so I would assume that would be the same for many people. Obviously, it would depend largely on that base number.. if your salary is lower then you can have a much higher times limit than your annual salary. 3-4x of 100k is a huge number. 3-4 of less than that isn't that huge considering some lines..

[Shock]

Thnks for the responses. I use to think one credit card was enough, and I didn't want to keep track of all the cards. Now I have 8, and counting. My goal is to reach 100k in overall credit limits, and hopefully I stop there. But I only want it over 5 cards or so.

[ways2go]

Definitely,   I just went over my gross income this past weekend. I got a 3600 increase on my Amex ED. 

[takeshi74]

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@Shock wrote:

Can overall credit limits on file (mines is $54,500) exceed total income?

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Yes.  This is frequently asked so there are other threads you can also refer to.

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@Shock wrote:

Mines is 60k so I'm wondering if that's why I got a recent denial..

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Again, CL's aren't set to equal one's income.  Each creditor determines how much credit they're willing to extend to an individual based on credit and income.  Start with the reason(s) for denial that the creditor provided.

[visorboy1974]

I have ~$135K in available credit (well above my annual income) WITH a BK7 on record.  I'd be scared to think what it would be with no PR on my credit file.  I've seen people with over $400K in available credit with a low 6 figure income.  Not that it's common, but it's possible.    

[Shock]

Well, its pretty much because I hit my internal limit with Chase, plus many new opened accounts recently.

I was just wondering about the over income thing. I guess my next question would be, does that scare creditors away? Supposed my income dropped to 30k and I had 54,500 in open credit. I know it's common; but can I get any more credit?