I realize that I am asking a difficult question to answer definitively as everyone's situation is different. But I am curious.
What do most banks consider to be an appropriate amount of Credit Card Credit? Is it 10% of your annual salary? 20%? I always hear the question, "What is your Debt to Income Ratio?" But that would include car and mortgage debt along with any outstanding CC debt. I have never really seen any discussions or articles as to a good rule of thumb for the amount of total credit lines one should have with credit cards. With the new Credit Card Law and having to verify income to insure one can afford the new credit, I am curious if there is some super secret formula out there.
For me, my car is paid for. I don't have a house payment or any other real debts to speak of as I PIF my CC's each month. I could see where the answer in my case may be different than someone carrying a mortgage and a car payment. Neverthess I thought I would ask.
Many thanks in advance for any comments.
