Too much available credit??

[icyhot]

I try not to let my total credit limits get too high because I hear banks don't wanna see that when you get a mortgage and I'm planning on getting on next year. That's why I'm really good for closing accounts. By that time my income will be about $36K. What's a decent total available credit for that income so banks won't see me as a huge risk?

[Anonymous]

Barclays thinks I have too much credit apparently. Lol.

When I tried to get SL increase on the ring.

[kdm31091]

Well the first thing I'd say, and I'm not sure if you are already doing this, is make sure you garden. Inquiries last two years. Even though their scoring impact diminshes, they're still there. I would assume mortgage is a more important goal than a new card for most people, so make sure you're not apping anytime close to when you want a mortgage. (Six months at the very least)

The opinions on this question will vary and there is no set answer at all. Nobody can say "x bank will be uncomfortable once you have y amount of credit". I can tell you that I think once you are approaching double or triple your income, it's too much, but that's a personal thing and banks all have different "comfort levels". However, with a $36k income I would personally say do not exceed maybe ~$50k in available credit. Again, you will hear different things but if you had $100k in available credit with your income, I'd assume lenders would start looking at you.

[Anonymous]

43K W2 Income and just short of $60K total personal income and I am nearly double that in Revolving Credit.

[jamesdwi]

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@icyhot wrote:
I try not to let my total credit limits get too high because I hear banks don't wanna see that when you get a mortgage and I'm planning on getting on next year. That's why I'm really good for closing accounts. By that time my income will be about $36K. What's a decent total available credit for that income so banks won't see me as a huge risk?

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it all depends on your file, if you are new to credit, banks think that even 20% of your income is too much, but fast forward 3 years, 1x income is fine. 5 years 2x your income as long as you are making your payments and not using more than 30% of your total UTL, at 10 years of credit experience banks may think that 5x your income is okay. 

I personally have 6 years of credit history, and total credit lines equal more than 2x my income. Creditors aren't complaining. 

[icyhot]

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@kdm31091 wrote:

Well the first thing I'd say, and I'm not sure if you are already doing this, is make sure you garden. Inquiries last two years. Even though their scoring impact diminshes, they're still there. I would assume mortgage is a more important goal than a new card for most people, so make sure you're not apping anytime close to when you want a mortgage. (Six months at the very least)

The opinions on this question will vary and there is no set answer at all. Nobody can say "x bank will be uncomfortable once you have y amount of credit". I can tell you that I think once you are approaching double or triple your income, it's too much, but that's a personal thing and banks all have different "comfort levels". However, with a $36k income I would personally say do not exceed maybe ~$50k in available credit. Again, you will hear different things but if you had $100k in available credit with your income, I'd assume lenders would start looking at you.

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That's the plan. I want to get all the card apps I want to do out the way before this year ends, then focus on saving and refinancing my car. I want to start shopping for it by next summer. No way I would even feel comfortable with 100K in AC, even if I keep my balances low. I think 50K is a good figure since my credit history is 5 years long.

[Peteyglad]

I am a little curious on this as well. I have my first meeting with my loan officer today. I wonder if it will come up? Thankfully my wife has a high income and not many cards to help even things out.

[Anonymous]

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@jamesdwi wrote:

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@icyhot wrote:
I try not to let my total credit limits get too high because I hear banks don't wanna see that when you get a mortgage and I'm planning on getting on next year. That's why I'm really good for closing accounts. By that time my income will be about $36K. What's a decent total available credit for that income so banks won't see me as a huge risk?

---

it all depends on your file, if you are new to credit, banks think that even 20% of your income is too much, but fast forward 3 years, 1x income is fine. 5 years 2x your income as long as you are making your payments and not using more than 30% of your total UTL, at 10 years of credit experience banks may think that 5x your income is okay. 

I personally have 6 years of credit history, and total credit lines equal more than 2x my income. Creditors aren't complaining. 

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I wonder if these numbers can be confirmed. I also have about 6 years in credit history and 1.5x income in credit lines. But I am not having to worry about getting a mortgage like OP at the moment, so it's hard to say. A denied credit card application is much easier to swallow than a denied mortgage.

[onstar]

Yeah, I think I have too much CL. Heck, I would never give me this much credit.

:shrug:

[fedxboy]

Oh my, I remember how worried I was when I came close to 100k in available credit.  Now as of today, I'm sitting on 201,850k and it's still climbing.  Time to start chopping those high interest rate cards