Too Much TCL Relative To Income?

[Skywalker]

I've been on a spree of card applications, debt paydown, and in general debt restructuring that's resulted in getting me from 570s back in September to 660s today. I do have some late payments really dragging me down from Q1 2025 that I'm dealing with, but I was wondering if banks would be averse to CLIs and applications if I have too much available credit already, even if not solely with their bank.

I recently asked for a CLI from Capital One and one of the reasons for denial was: "Your financial obligations, such as those reflected on your credit bureau report are too high compared to your income"

I have just under$15k of debt split as such: $2.5k revolving, $10.5k personal loan, and $2k student loan. My income, just base pay, is roughly $35,000. I'm in the military and that doesn't factor in my food which I am technically given money for, but then immediately is taken out of my check which adds another ~$5.7k a year for a total of just over $40k. I was only reporting the $35k to Capital One when I asked for a CLI. Also to note I have very little mandatory spend as I'm prrovided health insurance, housing, and other things that would otherwise take from my income.

I have about $28k in total credit line availability and was wondering if it's a mix of that and my DTI, or just my DTI what made them averse. Any feedback would be appreciated.

[Vinjints]

The reason they provided sounds like its simply a DTI. That doesn't match your title of too much TCL. I don't think the total owed is a straight line (2.5+10.5+2 / $35k) as I think the loans would not count against you as much as revolvers. It should be your monthly payments vs monthly income. They could also have other reasons that were not listed. As for the other banks, they all have their limits, some relative to your income.

My focus would be on the debt paydown first, followed by getting your CR increased. Seems liks Chase, Fidelity, USAA are already happy with you.

[BankDealer]

You should report your BAS as part of your income. If an application ask for non taxable, your BAH/BAS should go here. If it just asks for income add the bas/bah to your basic pay and increase it by 25%.

Example: E4 w/ 3 years of service living in the barracks income should be

Basic Pay: 3482.40 * 12 = 41,788.80

BAS: 476.95 * 12 * 1.25 =7,154.25 

Total Income: $48,943

makes sense?

It doesn't matter it nevers sees your bank account, fact is that the bank is very likely accounting for food when they see your income and how much do you have for repayment. 

i hope that loan is not from omni or other of those "military lending"

[NoMoreE46]

As noted, it seems like a numbers thing.  You are already in a great tier of cards with excellent CL, so no need to climb the CL ladder right now. 

Speaking of which, (from your Siggy of Desireds,)  you should do the Gold card first then the Plat as  you  wont be eligible for Gold SUB if you get the Plat first.    

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@Skywalker wrote:

I've been on a spree of card applications, debt paydown, and in general debt restructuring that's resulted in getting me from 570s back in September to 660s today. I do have some late payments really dragging me down from Q1 2025 that I'm dealing with, but I was wondering if banks would be averse to CLIs and applications if I have too much available credit already, even if not solely with their bank.

I recently asked for a CLI from Capital One and one of the reasons for denial was: "Your financial obligations, such as those reflected on your credit bureau report are too high compared to your income"

I have just under$15k of debt split as such: $2.5k revolving, $10.5k personal loan, and $2k student loan. My income, just base pay, is roughly $35,000. I'm in the military and that doesn't factor in my food which I am technically given money for, but then immediately is taken out of my check which adds another ~$5.7k a year for a total of just over $40k. I was only reporting the $35k to Capital One when I asked for a CLI. Also to note I have very little mandatory spend as I'm prrovided health insurance, housing, and other things that would otherwise take from my income.

I have about $28k in total credit line availability and was wondering if it's a mix of that and my DTI, or just my DTI what made them averse. Any feedback would be appreciated.

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[Skywalker]

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@BankDealer wrote:

You should report your BAS as part of your income. If an application ask for non taxable, your BAH/BAS should go here. If it just asks for income add the bas/bah to your basic pay and increase it by 25%.

makes sense?

i hope that loan is not from omni or other of those "military lending"

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Thanks! I didn't know if I should include include it or if it was lying about income. It's also a good reminder that I need to multiply it by 1.25, I'll have to make sure update my reported income across my banks.

As for the loan it's from NFCU, I opened it just two or so weeks ago to consolidate my revolving credit. I intend to finish paying my revolving credit to 1-3% (I have about $2.3k left on my Fidelity) and then hammering my installment loans since I have have about 80% of monthly pay as discretionary spend.

If I update my income which would change it from $35k to lets say 41k (I'll pin E-3 next week) how soon do you think I should wait to ask for a CL? 

[Skywalker]

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@NoMoreE46 wrote:

As noted, it seems like a numbers thing.  You are already in a great tier of cards with excellent CL, so no need to climb the CL ladder right now. 

Speaking of which, (from your Siggy of Desireds,)  you should do the Gold card first then the Plat as  you  wont be eligible for Gold SUB if you get the Plat first.    

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I have been rushing quite a bit lol, might've become too greedy with bumping my score up so much in such a short time. I am pretty lucky that young me had the forthought to avoid store cards and other less reputable banks, I've just finally got to the point in life where I want to flesh out my finances, plus the no AF due to being in the military makes "luxury" cards much more attractive to get during my time in service.

I get that it makes sense to get Gold if chasing subs, but I honestly don't think I would be able to put the required spend through even the Gold to get the sub. I was prioritizing the Plat mainly for the credits (aura ring, Clear+, Resy, Uber, Lulu, and the Digital entertainment). Most of the "luxury" cards I want I don't think I'll be able to make the required spend on at least for another year or two so I'm not valuing subs in my thought process too much.