maybe a dumb question about tons of available credit

[Anonymous]

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@mattmix36 wrote:
DTI? I haven't had any probs

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In my experience, you are more likely to run into a limit with a particular lender (where that lender has enough exposure to you) rather than lenders looking across all your cards and deciding you have too much.  I'm sure that happens too at some point, but "longtermlurker has $53K CL with us, we don't want to give him more" seems to happen before  that "We don't want to give him a $10K limit with us because he has $200K in other credit lines"

If you really spread out your apps among lots of different banks, so that no bank had a lot of risk, I guess you would see the second case first.

[mattmix36]

That makes sense...I'm kinda waiting/wondering when AMEX is going to ask what's up with all of this recent credit you've gotten/applied for.  Or from Chase because I have 4 cards and a total of 41k with them.

[takeshi74]

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@dominow wrote:

suppose you have a 39k income, and you have 10 cards worth 40k or maybe 80k of available credit but seldom use the cards enough for the ccc's to make any money on interest. do they start lowering your cl's, or cancel your card. should you carry some small amount on each just to give them a little? maybe take turns on one or two and switch to another pair. i guess i'm wondering, what'sin it for them if you don't use it.

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It's unlikely that you'd see AA from nonuse.  Closure from nonuse is more likely and you'd have to verify with each of your creditors whether they close due to inactivity and how long before they do.  You don't need to carry a balance (which results in paying interest) to show activity.

As indicated above, interest isn't the only way they make money on their customers.

[thom02099]

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@subwaysandwich wrote:

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@mattmix36 wrote:
I make 70k/year and have over 150k in available credit card credit...you should be fine.

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Won't they give you that "DTI is too high" thing?

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Someone correct me if I'm wrong or reading this incorrectly, but mattmix36 says he's got income of $70K, and available credit LIMIT of $150K.  This is not his actual debt and therefore wouldn't impact DTI as being too high.  The $150K is not his DEBT; it's his available credit. 

I'm in a similar boat.  Income of $60K, available credit limits of $133K, but my actual debt, exclusive of mortgage is nowhere near that. 

[dddewdrop]

   I would used them each at least once a quarter to keep them active. Think of it from the CC company's point of view. If you arent costing them money and you might use them theny they should keep you around. Also, some people shop for credit max cards and then try to get more. These people are competing for more credit. However, the  category you fall  into is someone who has credit but isn't using it. Effectively the card companies are competing for Your business. I would let at least 1 dollar report to the credit bureaus per card per quarter to keep them active. 

    If you don't plan on ever using your cards, then you may want to cancel one or more. However, if I were you I would hold on to what you have. Just remember to check your accounts from time to time even if you aren't using them to make sure there is no error on a bill or identity fraud or anything.

[dddewdrop]

    I believe cards make a lot of their money from swipe fees charged to the seller of items to customers. Card companies don't necessarily "want" you to have high balances. It really depends on what sort of overall debt portfolio the individual issuers are holding but most want to keep their debt load lighter. The people that carry a lot of debt and are paying a lot of interest are generally a risker group to deal with for the cc comoanies because they are much more likely to not pay. They would prefer that no one has debt for the most part and to just collect swipe fee tranactions and not have the default risk I think. So in conclusion you fall into the most desireable customer group so as long as you keep your cards active at a minimum level then you will stay a customer for a long long time. 

[mattmix36]

Correct...I PIF

[lg8302ch]

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@thom02099 wrote:

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@subwaysandwich wrote:

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@mattmix36 wrote:
I make 70k/year and have over 150k in available credit card credit...you should be fine.

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Won't they give you that "DTI is too high" thing?

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Someone correct me if I'm wrong or reading this incorrectly, but mattmix36 says he's got income of $70K, and available credit LIMIT of $150K.  This is not his actual debt and therefore wouldn't impact DTI as being too high.  The $150K is not his DEBT; it's his available credit. 

I'm in a similar boat.  Income of $60K, available credit limits of $133K, but my actual debt, exclusive of mortgage is nowhere near that. 

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Thanks for clarifying....was shocked about DTI as I am in the same boat...also almost double available credit to income but no debt...also PIF...