Can available credit hurt you?

[Yasselife]

At times of applying, can high limit credit cards backfire for too much exposure? Which banks would be more sensitive to it if that's the case?

[Horseshoez]

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@Yasselife wrote:

At times of applying, can high limit credit cards backfire for too much exposure? Which banks would be more sensitive to it if that's the case?

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I cannot speak to which creditors are high limit adverse, but I have heard anecdotal reports from folk with high scores (800+) and high limits (with <1% utilization) who have been denied new credit due to exposure.

[Yasselife]

https://ficoforums.myfico.com/t5/Credit-Cards/Too-much-available-credit-updated/m-p/4015680

[CYBERSAM]

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@Yasselife wrote:

At times of applying, can high limit credit cards backfire for too much exposure? Which banks would be more sensitive to it if that's the case?

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No it should not.

HOWEVER if you deal with some sketchy Credit Unions then it is very possible!

Just like CreditOne that they do not want to do business with you, after your score has improved! It's on you to avoid financial institution like that.

[coldfusion]

That's an old thread but the premise still applies.

In some cases the official reason for a decline is because of current TCL across all cards, in some cases the stated reason is the number of cards already held.    NASA and First Tech CU are examples of the former,  UMB Bank of the latter, where they aren't declining because they are questioning creditworthiness.  They decline because they don't want to be in the business of issuing sockdrawered cards.

[M_Smart007]

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@Yasselife wrote:

At times of applying, can high limit credit cards backfire for too much exposure? Which banks would be more sensitive to it if that's the case?

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@Yasselife,

Mostly some CU's can be sensitive to too much available credit.

For me it was DCU, Unify CU & First Tech FCU.

I was finally able to get a DCU  card ...after a quarterly online orange pre-approval.

First Tech, I dropped $100K in Savings and let it marinate. Was denied for a CC, but got the decision overturned.

Wells Fargo had denied me for "Too much available credit" ...I hold two CC's with them,

although that is the reason they cited, it may not be the sole reason. They just have to provide any reason out of the bag.

Certain lenders will have a "MAX" aggregate amount that they are will to lend, probably profile and Income/DTI dependant.

I think Synchrony has a MAX aggregate limit of $100K (but we know how that usually ends up)

Some CU's such as NFCU have a max hard credit card limit. Others like Alliant, only allow (1) card per applicant.

I know I have hit Max with Amex and Chase. (for the time being)

Citi keeps on dishing it out.

Cited denial reasons can be hard to figure out at times.

[SouthJamaica]

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@Yasselife wrote:

At times of applying, can high limit credit cards backfire for too much exposure? Which banks would be more sensitive to it if that's the case?

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I've never been turned down by a bank for having too much available credit, but I have been turned down by credit unions for having too much available credit.

[tcbofade]

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@SouthJamaica wrote:

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@Yasselife wrote:

At times of applying, can high limit credit cards backfire for too much exposure? Which banks would be more sensitive to it if that's the case?

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I've never been turned down by a bank for having too much available credit, but I have been turned down by credit unions for having too much available credit.

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Me too.

[Jnbmom]

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@tcbofade wrote:

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@SouthJamaica wrote:

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@Yasselife wrote:

At times of applying, can high limit credit cards backfire for too much exposure? Which banks would be more sensitive to it if that's the case?

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I've never been turned down by a bank for having too much available credit, but I have been turned down by credit unions for having too much available credit.

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Me too.

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Me three

[Traveler101]

Poor First Tech. There was myself and another who had posted about approvals given we didn't think that we fit based upon prior posts. Actually mine went smooth. I'm more than 2 times annual income and 9 cc at time of application. They still granted me an odyssey with a 25k line. Ironically they had sent me an email last week on my card. 2 additional bonus points on any spend over 500.00. Go figure I put 6400.00 on it the day before it took effect. Perhaps low dti, 85k+ in income per year? The other poster said too, he was way over his income in cl. I'm kind of anxious to see about a cli after some good spend. I've seen the pyramiding excuse from others.