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Too much credit?

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Too much credit?

Hi all, curious as to if anyone has this "issue"? 

 

I was a college student from 05-09 which was before the law was enacted to protect <21 year olds from opening credit cards.  We got marketed heavily and the CLs seemed high and generous, especially in the 05-07 years.  

 

At this point, I have 5 cards with a total CL of around $65k

 

BoA - $30k

Chase Southwest - $20k

Virgin America - $5k

Amex Gold - $5k

Discover $5k

 

Should I be concerned about this?  Does anyone else have incredibly high credit limits for their age and income? 

Message 1 of 14
13 REPLIES 13
Super Contributor

Re: Too much credit?


@johnnymac5 wrote:

Hi all, curious as to if anyone has this "issue"? 

 

I was a college student from 05-09 which was before the law was enacted to protect <21 year olds from opening credit cards.  We got marketed heavily and the CLs seemed high and generous, especially in the 05-07 years.  

 

At this point, I have 5 cards with a total CL of around $65k

 

BoA - $30k

Chase Southwest - $20k

Virgin America - $5k

Amex Gold - $5k

Discover $5k

 

Should I be concerned about this?  Does anyone else have incredibly high credit limits for their age and income? 


If you're disciplined enough to not treat the cards as an extended income you're ok.  I have high available credit also.

Message 2 of 14
New Member

Re: Too much credit?

Thanks for the reply.  

 

Unfortunately, I wasn't very disciplined in college so I rang up a nice little debt but I'm still working on paying that down. 

 

Much better now but I understand why they gave us high limits --- more rope to hang yourself. 

Message 3 of 14
Member

Re: Too much credit?

This is just something i heard so take it as you wish, and I'm sure someone will correct me if wrong, 

 

But I heard that if you have a lot of credit, you're more likely to be denied or have higher interest and such simply because you are a higher risk (i.e if you go bankrupt or something you're more likely to use up all your credit. And using up 30k vs just 2k is a bit different)

Message 4 of 14
Regular Contributor

Re: Too much credit?


@GideonP wrote:

This is just something i heard so take it as you wish, and I'm sure someone will correct me if wrong, 

 

But I heard that if you have a lot of credit, you're more likely to be denied or have higher interest and such simply because you are a higher risk (i.e if you go bankrupt or something you're more likely to use up all your credit. And using up 30k vs just 2k is a bit different)


Absolutely not true. Quite the opposite, actually. Higher limits beget higher limits. If you have tons of available credit available and arent using it, you are seen as a  LOWER risk. Undisciplined people are the ones who are constantly at 80%+ UTI, thus more likely to get into trouble.

 

Pay it down, and keep the accounts open.

Message 5 of 14
Valued Contributor

Re: Too much credit?

This is not a problem, actually a very good position.

 

The only problem was charging too much, not having too much credit.

 

Learn your lesson about it being easier to get in debt than to get out and go forward with excellent credit.

 

 

Message 6 of 14
Valued Contributor

Re: Too much credit?


@networkguy wrote:

@GideonP wrote:

This is just something i heard so take it as you wish, and I'm sure someone will correct me if wrong, 

 

But I heard that if you have a lot of credit, you're more likely to be denied or have higher interest and such simply because you are a higher risk (i.e if you go bankrupt or something you're more likely to use up all your credit. And using up 30k vs just 2k is a bit different)


Absolutely not true. Quite the opposite, actually. Higher limits beget higher limits. If you have tons of available credit available and arent using it, you are seen as a  LOWER risk. Undisciplined people are the ones who are constantly at 80%+ UTI, thus more likely to get into trouble.

 

Pay it down, and keep the accounts open.


+1


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Message 7 of 14
Moderator Emeritus

Re: Too much credit?


@Mustanglvr2006 wrote:

@networkguy wrote:

@GideonP wrote:

This is just something i heard so take it as you wish, and I'm sure someone will correct me if wrong, 

 

But I heard that if you have a lot of credit, you're more likely to be denied or have higher interest and such simply because you are a higher risk (i.e if you go bankrupt or something you're more likely to use up all your credit. And using up 30k vs just 2k is a bit different)


Absolutely not true. Quite the opposite, actually. Higher limits beget higher limits. If you have tons of available credit available and arent using it, you are seen as a  LOWER risk. Undisciplined people are the ones who are constantly at 80%+ UTI, thus more likely to get into trouble.

 

Pay it down, and keep the accounts open.


+1


and +2!

Just puttin' syrup on something, don't make it pancakes.
Message 8 of 14
New Member

Re: Too much credit?

The more credit the better! However after recently paying off all my credit cards, I feel so much better!

 

Off topic:

 

there's a law to prohibit credit cards to 21> ? Never heard of that before, I got my first credit card from USAA at 19 when I joined the Army.

Experian: 711
Equifax: 705
Transunion: 705
Message 9 of 14
Moderator Emerita

Re: Too much credit?


@Guam wrote:

The more credit the better! However after recently paying off all my credit cards, I feel so much better!

 

Off topic:

 

there's a law to prohibit credit cards to 21> ? Never heard of that before, I got my first credit card from USAA at 19 when I joined the Army.


It's new; part of the Credit CARD Act. An applicant under age 21 has to prove sufficient income to manage a CC, or have a joint applicant. You would have been OK, what with those big bucks earned as an E-1.  Smiley Wink

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
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Message 10 of 14
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