credit to income, overextended?

[gen-specific]

Hello, so I see a lot of institutions granting credit from stated income, and FICO by itself does not factor in income. Okay, understood.

I have seen some people's counteroffers and denial letters factoring in income as a reason for not granting a certain amount of additional credit. I have talked to underwriters personally and heard some same things. Although other institutions would be more than happen to grant more and more credit.

So is there a hard/fast line for how much credit you can have, relative to your stated income, before credit card and line of credit lenders across the board just start saying no?

if so, i would like to know what the industry standard is. Is there a ratio? 

lets keep things simple, if you make $100,000/yr from all income sources, how much unsecured credit card/line credit should you be able to get from institutions across all credit cards. $20k? $80k? Virtually unlimited on an app spree if you wanted 30 different credit cards?

Lets assume all other ducks are in a row, with no negatives, a mid 700s+ credit score... savings and assets not taken into consideration.

[enharu]

it's hard to say.

different banks have different policies. Some are VERY conservative (Chase for example), some go crazy with limits.

Also, it depends on how long you have had that credit card.

The longer you have it without causing any issues, the more likely your bank is likely to overlook your income and extend you a higher credit. A long account history also gives them a much better data sample to analyze how safe or risky it is to extend credit to you. For example, someone who have had a lot of credit but never had issues with late or BK for 20-30+ years, has already weathered past many economy downturns without any problems, and is thus considered very safe for most banks. These are the type of people besides billionaires and multimillionaires that banks desire and have no issues with getting most of the credit cards out there.

[bettercreditguy1]

It also depends on your other debts, ie car, mortage, student loans, etc. Realistically there is only so much disposable income to pay bills in a timely fashion.

[gen-specific]

Yes, well for instance I have none of those things. Because I paid my way through college, live in a city where cars are not necessary, and rent an apartment.

[Dustink]

I would say it would not take too long to aquire $200k in unsecured credit card lines, as long as you had a high credit score.

But I think $500k would be a good goal

[gen-specific]

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@Dustink wrote:

I would say it would not take too long to aquire $200k in unsecured credit card lines, as long as you had a high credit score.

But I think $500k would be a good goal

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Jeez. I don't want that many cards though. If I can do that with just 5 or 6 cards/personal lines of credit that would be better!

I have 100k in unsecured credit card lines right now, and I'm pretty content with that. I actually plan on closing all my cards with limits under 5 digits, in six months I will just request limit increases and close all the ones that do not have a limit over $9,999